Dallas Homeowners: Be Aware of These 5 Red Flags from Storm Chasing Roofers

5 Red Flags That a Roofer is Trying to Scam You After a Storm

More than 70% of Texas homeowners have been slammed with hail damage in the past decade, and Dallas is one of the hardest-hit cities. The recent flood in Kerr County has left many wondering if their roofs are still intact. With so many storm chasers and roofing contractors preying on vulnerable homeowners, it's worth knowing how to spot a scam real quick.

The Texas difference: why this state has unique rules

Texas law requires roofers to have a valid TDLR license to operate in the state. But many storm chasers ignore this requirement, hoping to make a fast buck before moving on to their next target. Here's the thing — according to the Texas Insurance Code (§541.007), homeowners are entitled to compensation for hail damage, but only if they hire a licensed roofer.

And let me tell you, it doesn't matter how many times I've seen this happen: roofers who don't follow the rules will take advantage of homeowners whenever possible. Recently, the Texas Department of Insurance (TDI) has implemented new regulations to prevent roofing contractors from taking advantage of homeowners during storm season. However, some unscrupulous companies have found ways to circumvent these rules by claiming that their work is "covered under warranty" or that they can "work around" the insurance company.

What you're actually owed — the real numbers

A typical Dallas homeowner on a 1,800 sq ft house insured at $320k faces a 1% hail deductible, meaning $3,200 out of pocket before insurance pays anything. If your roof requires replacement due to storm damage, you may be entitled to up to $50k in compensation from your insurance company.

How to get the most from your claim or contractor

To avoid being taken advantage of by roofing contractors, follow these steps:

• Verify the roofer's TDLR license**: Make sure the contractor has a valid license and check their ratings with the Better Business Bureau. This will save you from hiring a storm chaser who may not even have insurance.
• Get multiple quotes**: Don't settle for the first contractor that comes to your door. Get at least three quotes, and compare them carefully to ensure you're getting the best deal.
• Check with your local Better Business Bureau**: The Dallas Bbb has a list of accredited roofing contractors who have met rigorous standards. Stick with these reputable companies to avoid scams.
• Keep detailed records**: Document every conversation, quote, and payment with your contractor. This will help you track any discrepancies or issues that may arise during the process.

Red flags: when the contractor or insurer is acting in bad faith

If a roofing contractor says, "We'll cover your deductible," that's insurance fraud under Texas Insurance Code 27.02 — walk away. Other red flags include contractors who:

• Refuse to provide a written estimate**: Be wary of contractors who only offer verbal quotes or try to pressure you into signing a contract without a clear breakdown of costs.
• Claim they're "working with your insurance company"**: Legitimate contractors will communicate directly with your insurer, not claim that they're working behind the scenes on your behalf.
• Try to get you to sign a contract quickly**: Scammers often use high-pressure sales tactics to get homeowners to sign contracts without fully understanding the terms or costs involved.

The short version is this: stay vigilant and don't let storm chasers take advantage of you. Take a few minutes to review your insurance policy and identify any potential gaps in coverage. Make sure you understand what's covered and what's not, so you can make informed decisions about repairs or replacements.

How to Read Your Explanation of Loss Document

An Explanation of Loss (EOL) document is a critical component of your insurance claim process. It outlines the details of your loss, including the damages and costs involved. Review your EOL carefully to ensure it accurately reflects your situation. Check for specific items such as:

• Policy limits: Verify that your policy limits are sufficient to cover the repairs or replacements needed.
• Deductible: Ensure you understand how your deductible will be applied to your claim.
• Scope of work: Review the scope of work outlined in the EOL to ensure it aligns with the repairs or replacements agreed upon.

Texas-Specific Resources and Phone Numbers

The Texas Department of Insurance (TDI) and the Texas Department of Licensing and Regulation (TDLR) are key resources for homeowners navigating insurance claims. Familiarize yourself with their phone numbers and websites:

• TDI: 1-800-TDI-HLP (1-800-834-4537)
• TDLR: 1-800-803-9202
• TWIA (Texas Windstorm Insurance Association): 1-800-527-7784

What Happens During an Appraisal Process

An appraisal is a process where an independent third-party appraiser assesses the damage to your property and determines the cost of repairs or replacements. This can be initiated by you, your insurer, or a contractor. Be aware that:

• The appraiser will inspect your property and take photos and notes.
• They may request additional documentation or information from you or your insurer.
• The appraisal report will outline the estimated cost of repairs or replacements, which can be binding in some cases.

It's more nuanced than that, but by understanding these processes and resources, you'll be better equipped to navigate your insurance claim and protect your investment. Remember to stay vigilant and ask questions throughout the process to ensure a smooth and successful outcome.