June 3, 2019 | General

This subject is out of my practice area, but if history is any indicator, we will have some of the same problems after this most recent storm that we did in the past. I’ve fielded lots of calls from folks about this, so it seemed worthwhile to spend a little time talking about it.

Hailstorms are terrible for a variety of reasons. They cause lots of “direct damage” through destruction, inconvenience, and expense. But, they also cause a lot of “indirect damage” because hailstorms provide an opportunity for companies to scam Nebraskans and Iowans out of their insurance proceeds and deductibles.

Some folks know, but many don’t, that when a hailstorm rolls through crews from all over the country descend and try to scoop up the work. Some of these crews are completely legitimate and are just following a paycheck. Some of them are not. Some crews have no interest in actually fixing your roof according to the applicable building code or standing behind their work like good contractors do. Experience has taught me that with hailstorms comes fraudulent contractors that race to Omaha to sign up homeowners. There are two main types of trickery that come with roofing contracts.

In the first type, the salesperson that comes to your door has no interest or stake in fixing your roof – they have an interest in you signing a contract. They will then sell that contract (through a legal process called “assignment”) to a roofing company. Then, they disappear. So, you’ll be left with a contract that has been assigned to a roofing company that you don’t know, didn’t choose, and might not like. And they have been sold a job that may be more work than they bargained for and they might not want to perform fully and correctly. In the end, the homeowner loses, especially if the company is unincorporated and from out of state.

The second type of fraud is much more blatant. A roofing company will take a deposit or perform enough work to get paid ½ of the contract, then demand more money than the contract price to finish or just pack up and leave. Sure, you have a contract that says they will fix your roof for the stated price, but when they don’t, what are you going to do? You can sue them, and you’ll likely be right, but getting that justice won’t be easy. If the company is out-of-state and hasn’t followed the requirements of registering, then you might not be able to find them and serve them. And even if you can, collecting on your contract will be difficult. It’s a proposition that most lawyers won’t take on because there’s not a high chance of success and you’ll likely be throwing good money after bad.

Here are some tips to help you sort out the good and bad actors.

1. Ask if the company is incorporated in your home state. (Nebraska or Iowa) Every legitimate sales person or roofing contractor will be able to answer this question and it will be very easy for you to personally to verify. You can perform a simple search on your phone or computer at the Nebraska Secretary of State’s website or the Iowa Secretary of State’s website. If you can find the company, you can find their headquarters and registered agent. If they are local to Nebraska or Iowa, they will be easy to find in the event there’s a problem.
2. Ask to see the company’s certificates of insurance. Just like car insurance, general liability and workers’ compensation insurance policies come with a certificate that is usually delivered via email and is easily produced. A bad contractor that doesn’t have this coverage will balk at this request. But, a good, reputable company will have no problem furnishing this certificate prior to you signing a contract.
3. Get more than one bid. Given the magnitude of the recent storms, there will be no shortage of companies ready to do the work. Focus on quality over price, because hopefully your roof will need to last you for years to come. It needs to last at least until the next hailstorm.
4. Get a referral. Any homeowner that has lived in the Omaha/Council Bluffs area for any length of time has had to get his or her roof replaced and will have a good or bad experience to share. And if you need the name of an excellent roofing company that is local and stands behind it’s work, just call us and we can help you.

One of the worst things about being an attorney is getting a call from someone, knowing they’ve been wronged by a bad actor, and having no way to make it right. Following these steps will help to prevent you from being victimized by disreputable companies looking to make a quick buck.