How Do Shady Roofing Companies Cover Deductibles?
Put simply, roofing contractors that cover deductibles for homeowners are lying to not only the insurance company but also the mortgage company. You first must understand how paying your deductible factors into the roofing insurance claims process, then you can understand why it is illegal. Here is a simplified example to illustrate how a standard roofing claim for hail damage should work.
Step 1 documentation must be provided for the cost of repairs in order for an insurance company to pay the homeowner’s damage claim.
If the cost of the total repairs to the roof is $10,000.00, then let’s say the homeowner’s deductible is $1,000.00.
If the total roof claim is $10,000.00 the insurance company is going to pay the homeowner $9,000.00, the full cost of the roof repair minus the homeowner’s $1,000.00 deductible.
The homeowner is responsible for the $1,000.00 deductible to complete the full damage repair.
Once the roof damage to your Hattiesburg home is repaired and fully paid for, the insurance company and the homeowner have fulfilled their contractual obligations.
So, how do roofing companies cover deductibles? In order for a roofing company to cover a homeowner’s deductible, they either have to over-inflate the cost to repair the roof damages or find ways to complete the job for less money than it actually costs. Shady roofers usually will either do shoddy workmanship and leave the homeowner with no warranty, use cheap labor or use cheap roofing materials
If a roofing company knowingly misleads or inflates an estimate to cover the cost of a deductible, that would be considered insurance fraud. Now for example, if the roofing company inflates the cost of the roof repairs to $11,000.00 to get a $10,000.00 payout from the insurance company, this is knowingly defrauding the insurance company. Now the homeowner, as well as the roofing company, have committed insurance fraud.