Roof replacement is one of the largest investments a homeowner makes. It is also one of the most common targets for contractor fraud. Dishonest contractors take advantage of urgency, storm damage, and the complexity of insurance claims to overcharge, underdeliver, or disappear with your money entirely.
The good news is that fraud is largely preventable. Knowing what to look for before you sign anything puts you in control.
Six Tips to Avoid Contractor Fraud
1. Verify a permanent place of business, phone number, and tax ID. Any legitimate contractor has a physical address, a working phone number, and a tax ID. If a contractor cannot provide all three, walk away. Storm chasers often operate out of temporary locations and move on once the work — good or bad — is done.
2. Get several written bids before committing. Get at least three written quotes on company letterhead before hiring anyone. A dishonest contractor will find problems that do not exist to inflate the scope of work. Comparing multiple bids helps you identify outliers and protects you from paying for work you do not need.
3. Check references and review history. Ask for client references and follow up on them. Check the contractor's history with your state licensing board and look for reviews online. A reputable roofer builds their business on referrals from satisfied customers. If a contractor cannot point you to past work, that is a warning sign.
4. Never pay all costs upfront or in cash only. A legitimate contractor will not ask for full payment before work begins. A reasonable deposit is normal. Full payment before the job is done is not. If a contractor insists on cash only, do not hire them.
5. Confirm the contractor is licensed and insured. Verify that your contractor holds a current state roofing license and carries both liability insurance and workers compensation. If something goes wrong on the job and they are not properly insured, you may be liable. Your state licensing board can confirm current license status.
6. Be cautious of door-to-door contractors. Contractors who show up unsolicited after a storm are a red flag. Reputable roofers get their business from referrals and established relationships, not by knocking on doors in storm-damaged neighborhoods. If someone shows up at your door offering a free inspection, be skeptical.
Watch Out for Assignment of Benefits Contracts
An Assignment of Benefits (AOB) contract transfers your insurance claim rights directly to the contractor. Once you sign, the contractor negotiates with your insurer on your behalf, and you lose control of the process. You may end up with incomplete work, a disputed claim, or unexpected out-of-pocket costs. Never sign an AOB agreement without first consulting your insurer.
If Someone Claims Your Roof Is FORTIFIED, Verify It
Just because a roofer tells you your home is roofed to the FORTIFIED standard does not mean it is. The FORTIFIED designation requires an independent evaluation by a certified FORTIFIED Evaluator. Ask who the evaluator is, confirm they are certified by IBHS, and make sure you will receive the official designation certificate upon completion of the work. Get all of that in writing before work begins.
A contractor cannot self-certify a FORTIFIED Roof. If they claim otherwise, that is a serious warning sign.
Use Our Fraud Checklist
Download the Contractor Fraud Checklist for a step-by-step guide to vetting contractors and protecting yourself throughout the hiring and payment process.
Find a Verified Professional
The best protection against fraud is hiring someone you can verify. FORTIFIED-certified roofers and evaluators are trained professionals listed in the IBHS directory. They are accountable to a national standard and have experience completing roofs that qualify for the FORTIFIED designation. Find a Professional