#NoRoofScam Campaign Fighting Roofing Fraud in Colorado During Severe Weather

DENVER, January 13 – A group of nonprofit, government, and business organizations are working together to fight roofing contractor fraud in Colorado with a new public education campaign called No Roof Scams.

The campaign's goal is to sound an alarm during severe weather about the spike in roofing fraud and arm Colorado homeowners with information to protect themselves against being victimized by roofing scams. Help us spread the word by using #NoRoofScams and sharing anti-fraud advice, resources and messages.

This week's latest round of damaging strong winds and heavy snow throughout Colorado and specifically Colorado Springs, Northern Colorado and the Mountain communities serves as a reminder that Mother Nature can strike at any time of the year.

Strong winds can create stress points on a roof that, over time, can weaken and become compromised. Roofs are designed to resist typical wind loads, but can be progressively damaged over the years by high winds and debris carried by the wind. If you think you have roof damage caused by wind and/or flying debris, it's important to get it fixed immediately. The longer you wait, the more damage will occur. Roof repair and/or replacement costs a lot less when you don't have to add in the other expenses of repairing leaks and water damage. Depending on the amount of wind damage, you may only need minor repairs while other damage could result in more costly repairs.

Colorado mountain communities need to be twice as aware. Not only are they getting the strong winds but also record snow fall that is creating heavy snow loads on roofs. Often what is portrayed as a "roof snow-removal company" is merely a group of guys with business cards and a truck. They have no clue how to properly remove snow from roofs without causing damage. For tips on getting roof snow removed properly, read HomeLink Magazine's Winter 2014 Article on Mountain Roof Snow Removal by Jeff Johnston, Vice President of CRA. The longer roofs remain with heavy amounts of snow, the bigger the risk of damage to property or people. 

Contact your insurance agent or company to assess the situation and determine whether you should file a claim or not. The roof is every building's first line of defense against Mother Nature, and Colorado's roofs need to be as strong as possible given all the severe weather events that occur here.

Unfortunately, these severe storms can bring out the worst in people, especially unscrupulous roofing contractors who scam consumers needing to repair or replace their storm-damaged roofs. These fraudsters will often make false promises, insist on full payment upfront before work is completed, and sometimes even create damage where none occurred.

While most contractors are honest and reputable, others are not. In fact, the highest number of consumer inquiries to the Better Business Bureau of Denver-Boulder involve selecting reputable roofing contractors.

There are many things consumers can do to guard against being the victim of a fraudulent roofing contractor.

• Look for well-established, licensed, insured and bonded roofing professionals with a federal tax identification number and a permanent address.
• Ask for a contractor's license number and confirm with your city or county building department that the license number was issued by them and is current.
• Check to make sure the contractor is registered to conduct business in Colorado at https://www.sos.state.co.us/biz/BusinessEntityCriteriaExt.do.
• Ask to see the company's certificates of insurance. Verify with the insurer the certificate is valid, the contractor is endorsed for roofing work, and the contractor's coverage for liability and workers' compensation is current. CONSUMER TIP: Check the number of employees covered by the policy - a low number indicates the contractor will hire temporary help who may or may not have roofing experience.
• Don't hire a contractor who knocks on your door following a storm. Most legitimate roofing contractors do not conduct business this way.
• Contact the Colorado Roofing Association (CRA), which maintains a current list of licensed, properly insured, professional contractors who have committed to abiding by the CRA Code of Ethics, and have passed a nationally recognized exam that addresses roofing work on residential and/or commercial property.
• Contact the Better Business Bureau to check for complaints filed against any company you are considering hiring.
• Be sure to get more than one estimate.
• Require references that specifically include other homes in your area, and check them.
• Make sure you review and understand all documents sent to your insurance carrier.
• Never pay a contractor in full or sign a completion certificate until all the work is completed.
• Don't be pushed into signing a contract right away. Never sign a contract with blanks or statements like "see insurance estimate, etc." - fraudulent contractors may enter unacceptable terms later.
• Always ensure that before you sign a contract it includes all the requirements established in Colorado Senate Bill 38.
  1. Scope of work and materials to be provided.
  2. Cost for same based on damages known at the time the contract is entered into.
  3. Approximate dates of service.
  4. Roofing contractor's contact information.
  5. Identification of contractor's surety and liability coverage insurer and their contact information.
  6. Contractor's policy regarding cancellation of contract and refund of any deposit including a rescission clause allowing the property owner to rescind the contract for roofing services and obtain a full refund of any deposit within 72 hours after entering the contract.
  7. A statement that if the property owner plans to pay for the roofing services through an insurance claim, the contractor cannot pay, waive or rebate the homeowner's insurance deductible in part or in whole.
  8. A statement that the contractor shall hold in trust any payment from the property owner until the contractor has delivered roofing materials to the jobsite or has performed a majority of the roofing work on the property.
  9. A statement that the property owner may rescind a contract for services, the payment for which will be made from the proceeds of a property insurance claim, within 72 hours after receiving notice from their insurer that the claim is denied in whole or in part.

Organizations participating in the No Roof Scams campaign include:

• Better Business Bureau - Denver/Boulder
• Colorado Division of Homeland Security and Emergency Management
• Colorado Division of Insurance (Department of Regulatory Agencies)
• Colorado Roofing Association
• Insurance Institute for Business & Home Safety
• National Insurance Crime Bureau
• Property Casualty Insurance Association of America
• Rocky Mountain Insurance Information Association

Follow #NoRoofScams to learn more about how consumers can avoid being the victims of unethical roofing contractors and find reputable roofing contractors.

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Rocky Mountain Insurance Information Association is a non-profit consumer information organization. Affiliated with the Insurance Information Institute, RMIIA has been serving consumers and the media since 1952.