For most home improvement businesses, insurance is pricey. That’s one reason why some roofing contractors try using shrewd tricks to skip paying for the required insurance. And unfortunately, many homeowners who work with these contractors don’t recognize this until it’s too late. Today, Istueta Roofing in Miami FL is sharing what you need to know to protect yourself from shady contractors.
It’s no secret that contractors, in general, get a bad rap. Cheap roofing contractors and storm chasers that do shoddy work have made it problematic to trust anyone to do the job well.
Because of this, finding a trustworthy roofing company requires a lot of time and research. Customer reviews, pricing, licensing, and previous works – all tell you what you need to know about any company you choose. But even if all those things are verified, one uninsured accident can cost you a lot more than the price of your new roof.
Regardless of other benefits a roofing contractor in Miami FL may promise you, it’s crucial to protect yourself in the event of accidents, damages, or incomplete work.
3 Must-Have Types of Insurance for Roofing Companies
Any responsible and legal roofing company will carry at least three main types of insurance:
This insurance protects the roofing contractor and you from being held financially liable if an employee gets injured on the job.
So, if a roofer falls off your house and breaks a bone, this insurance will cover the medical bills. This type of insurance is required by law for any roofing company.
General Liability Insurance:
This type of insurance covers damage to your home and its adjacent property. If damage occurs because of the roofing job, liability insurance usually covers the required repairs.
A trustworthy roofer will be careful and finish the job without causing any damage, but mishaps do happen. Imagine something falling from your roof and smashing into the windshield of your car. Or if a pile of tiles slides off the roof, and slams into your AC unit before damaging a set of bushes.
While you might have other insurance to cover these incidents, you shouldn’t have to use your personal policy to handle damage caused by someone else. The roofing contractor you choose should be properly insured to deal with their own mistakes.
In Florida, it’s illegal for a roofer to conduct business without a proper license registered with the state. This license certifies that the roofing contractor is competent in what they’re doing and verifies that they are legally permitted to practice roofing.
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4 Insurance Tricks Used by Shady Contractors
Here are a few common insurance tricks to be on the lookout for when choosing a roofing contractor.
Ghost insurance: A ghost policy provides proof of workers’ comp insurance for an independent contractor while omitting the owner of the business from any actual coverage. While they might be technically legal, ghost insurance policies aren’t responsible.
Poor coverage: In some cases, roofing contractors try to cut corners by paying for a policy with minimal coverage.
No insurance: While it may seem odd, some roofing contractors don’t even try to hide the fact that they’re not insured. Shoddy contractors sometimes try to operate without insurance, even though they know it’s illegal. One mishap can leave you paying for someone else’s medical bills or even replacing part of your property.
False certificates: In some cases, contractors who can’t afford insurance will only pay for it for the first month, and when they receive their certificate of insurance, they stop paying the premiums. Then show that certificate to customers as proof of insurance when it’s really inactive.
⚠️⚠️Be Aware!! The contractor may also carry other forms of insurance, including health insurance and vehicle insurance. DON’T get confused by these policies!!! Contractor insurance policies are for one year. Dishonest contractors often change the dates. Carefully check the dates on their certificate of insurance. Are they current? Or simply call their insurance company and verify the coverage.
Sadly, the roofing industry is full of cheap contractors and scammers waiting to use these tricks to profit from homeowners who don’t know what to look for.
Go to our Resources page for more tips during the contractor selection process.