Should Roofing Companies Work With or Against Insurance Companies?

The balancing act between insurance companies, roofing companies and the homeowner.
 

A fun comparison explaining the balancing act required between insurance companies and roofing companies with the homeowner in the middle!

 

Roofing Companies That Work With Insurance Companies

Maybe Rooftop Solutions is the norm or the exception, but I like to think we work with versus against insurance companies. You’ll probably need to be the judge of our methods. When a storm occurs with wind or hail, it prompts the phone to ring with requests to repair and inspect roofs. Discussing the storm and actually visiting properties really tells the story of what happened. Some homeowners know there was damage because they were home, but some were gone and had no idea. With permission, I like to walk around the property and evaluate the damage. A roof can take the brunt of hail or wind or be blocked by a grove, single trees, or the neighbors home. Wind damage is evident, and hail damage is not quite as easy to find.

With a storm that caused substantial damage, it’s pretty good practice to reach out to your insurance agent to let them know. They can discuss the process and will most likely echo what is found in this article. The process can vary from one insurance company to the next. Here are the ways I get involved and work with insurance companies.

  • Traditionally, the homeowner calls the agent, and an insurance adjuster arrives to inspect the property. In this role, I provide an estimate, and my opinion doesn’t matter a whole lot. There are exceptions, and sometimes I find damage that an adjuster doesn’t see; more often, insurance adjusters will comb over a property and find things I don’t see. If I feel strongly enough and see something that requires a second look, documentation is needed on my end to prove what I’m seeing is storm-related damage. I may be asked to meet the insurance adjuster at this time for a second look. Working with the insurance company can be a make or break here. Being professional enough to accept an outcome, not in favor of a roof replacement, is part of my role.

  • In the case I am the first on the property, I document the damage with pictures and show you what I’ve found. This prompts a call to the insurance agent and starts the claim process. Some insurance companies want proof that initiates the claim and will ask for the photos I took. I email these to agents or insurance companies. The visit ends with me leaving a business card, and I’m on my way. Signing a contract is what normally happens a lot at this point. Honestly, I’m still earning your business. Plus, the damage I found is subjective to the adjuster as well.

  • In rare cases, I’ve played the role of the adjuster when a widespread area in a town or large rural area has been affected by a storm. It’s a weird spot and a conflict of interest because I do sell roofs too! After going through a few claims, I’ve found it does work. Hail damage and wind damage are there, or it isn’t. The documentation required with this process is pretty extensive and involved working with the insurance desk adjuster to gather the information needed.

When it comes to the estimating part, I’ve found I’m pretty on target with local insurance companies or am flexible enough to work with and meet in the middle. This is a common breakdown area when a roofing company is not interested in working with the insurance company. Independent insurance companies use pricing like mine to determine what the labor and materials are for Southern Minnesota. National insurance companies allow higher roofing rates because the numbers are averaged in the Midwest. Large city and rural rates are combined to arrive at this number.

A roofing contractor seeing the insurance estimate or the homeowner keeping the information private is another great topic to cover. It can be very telling on how willing the roofing company will work with the insurance company and especially YOU! Should I show my roofer the insurance estimate?

Roofing Companies That Work Against Insurance Companies

The alternative relationship between insurance companies and roofing companies is oil and water. Roofing companies traveling large distances for a hail claim often say, “Yes, we will work with your insurance company” to get the job. Working with loosely translates to “I’ll get you a new roof for sure anyway I can.” A homeowner has a glimmer of hope and proceeds to signing a contract or accepting the agreement terms. If there is damage to the home, the roofing company will be doing the work. Paying X amount of money can release the contract if the homeowner wants another contractor to do the work.

The animosity between roofing salesman and insurance adjusters occurs in situations like these because of the roofer's extreme push to find damage and, on the opposite end, an adjuster entrenching because there isn’t damage. Envision the conflict between two immovable objects. There lies the relationship between roofer and adjuster when roofing companies are against insurance companies. Crooked roofing companies outnumber lopsided adjusters 10 to 1. I’ve met with adjusters who were on guard instantly because of this problem.

It can complicate the situation because many times, a roofing salesman opens their mouth without knowing what hail damage even looks like and pits the homeowner against the insurance company. When a homeowner gets that vision of a new roof in their head because the current one is pushing 20 years old is when things get dicey. The insurance company adjuster is walking into a powder keg if the roof isn’t covered. “I pay premiums and get this treatment!” is what homeowners say. Then the insurance company adjuster can get it from the roofing company. “You didn’t cover that, and it was plain as day.” The roofing salesman is trying to make a claim legitimate to eliminate themselves from being the fool. Now the homeowner is at risk for a possible rate increase because a claim was opened for no reason.

In retrospect, let’s say there was damage. Now the situation can go awry between roofing and insurance companies because of pricing. Remember, the homeowner cannot exit the contract and is legally bound with this roofing company. That larger-than-life roofing logo, the salesperson, the production team, and advertising is not cheap. Some of these roofing companies are using the same software the insurance company adjusters are. The result is roofing companies nickel and diming insurance companies. Insurance adjusters have told me in a joking manner, “I swear I get charged for opening and closing job site trailer doors with the storm chasing outfits.” It really becomes that ridiculous.


Insurance Company and Roofing Company Relationship

Reciprocation Between Insurance Company and Roofing Company Is Key

There is a Middle Ground

Within every insurance estimate is profit built in for whoever is doing the work. Insurance companies can reevaluate based on conditions that may exist. Roofing companies can do the same thing.

Letting People Do Their Jobs

Being micro-managed is never fun. Imagine being an insurance adjuster with a roofing contractor looking over their shoulder. Imagine being a roofing contractor with a homeowner looking over their shoulder. When people are allowed to work, they can focus on the task and not who’s watching.

Damage is Damage

Insurance companies don’t make a habit of denying claims with actual damage. In many instances, the insurance companies were more forgiving with roof damage than I was. The homeowner/insured usually gets the benefit of the doubt unless the claim history was frequent.

If a roofing company exceeds what the insurance company allows on a matching estimate, an adjuster may request a comparable estimate from a different contractor.

Conflicts that arise between Insurance Company and Roofing Company

It’s almost always pricing. The #1 reason for a conflict is this: The cost of doing business is skewed because of the location of the roofing contractor and the price rate the insurance company pays in the area. For example, A metro contractor working in a rural area. Many insurance companies suggest working with local contractors to avoid this potential mess.

If a huge difference is noticed between a local roofing contractor and the insurance company, the difference can be a roof measurement error, ice, water barrier protection differences, or a large difference in re-decking the home. Older homes had large gaps between the roof boards when wood shakes were used. Plywood or OSB needs to be laid overtop the existing roof deck to meet manufacturer specifications. Add-ons always require verification by the insurance company before starting. The insurance company will determine if the cost is justified or not. These are discussions that go both ways and require the roofing company and insurance company to get on the same page.

What To Take Away From This Article

Don’t sign a contract until you know for sure what roofing company you want to choose. Headaches and costly contract errors can be avoided by following this simple step. Trust is key. Adjusters and insurance companies know what roofing companies are fair and which ones are foul.

Additional Blogs On Insurance Claims You Might Like

Should I Show My Roofer the Insurance Estimate?

Insurance Claim with My Roof, Now What?

How To Find A Local Roofing Contractor “Near Me”

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