Monthly Archives: April 2011

HAIL DAMAGED ROOF? 8 THINGS HOMEOWNERS MUST KNOW

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In the past several years, we have all experienced the knock at the door of someone wanting to sell us one thing or another. It is especially inconvenient after a long day at work or when we are sitting down to dinner with our families or when we are entertaining guests. We answer the door to see someone unfamiliar to us that says, “We are working in your neighborhood and are replacing many roofs on your street because of Hail damage.  Would you like for me to go up and inspect your roof to see if we can get an insurance claim for you”?

If this has happened to you, your friends or family read the following information on how you should properly file for a Homeowner’s Insurance Claim for damaged roofing replacement.

1) Do your homework and get educated about your coverage and any potential costs prior to contacting the insurance company. Locate and carefully read your Homeowner’s Insurance Declaration pages regarding your coverage especially the replacement coverage articles. Remember that your Insurance company is the only one who can approve the payment of these damages.

2) Prior to anyone getting on your roof, other than the insurance adjuster (with proper credentials), obtain a current workers compensation and general liability certificate. These coverages should then be verified with the listed insurance agent. If anyone is injured on your property, you are liable without this protection!

3) Contact your insurance company and let them know of any damages (hail or wind) that you think you may have incurred.  Regardless of what any contractor tells you, your insurance company must approve your claim for a hail damaged roof.

4) Go ahead and get one or two detailed proposals for replacing your roof. Make sure you only contact State Licensed Contractors in the state where your home is located. And they should be certified by the roofing product manufacturer and listed on the manufacturer’s website as such. Be sure to check all contractor credibility through sources such as: Kudzu.com, AngiesList.com and the Better Business Bureau.

5) Never sign any agreement with a contractor to act as your representative to get you and insurance claim. Never sign any agreement that states that a contractor will install your new roof for whatever the insurance company will pay.

6) Schedule a time so that you can personally meet with your insurance adjuster. Make sure the adjuster thoroughly inspects your roof for not only suspected damage but any other damage. Provide the adjuster with your preferred contractor’s detailed written proposal. Your insurance adjuster will provide you with a report detailing all of their expenditures for your claim amount.

7) Provide the insurance companies report to your contractor for their review to insure that the quantities of material and the complete replacement value are correct. The contractor can help you determine if you need if you need subrogation from your insurance company. This can usually be done with a phone call between the insurance adjuster and your contractor. This should be the only time your contractor should speak with the insurance adjuster on your behalf. The insurance adjuster will notify you of any changes to your claim.

8) Remember your homeowner’s insurance adjuster is the only person that can approve an insurance claim. You are in control of the contractor that performs any work on your home. DO NOT give any contractor any money up front for a roof replacement. Any reputable company can over the costs of material and labor until the job is complete. Make sure the insurance company makes the claim check payable to you and not your contractor.

We, in the business, call Contractors who follow storms, “Storm Chasers.” Although they may give you a price that is very hard to turn down or offer to meet any insurance company’s pay out, even including the deductible, they can become the cause of the most expensive roof that you could ever buy.

There are currently many stories (substantiated by your local news providers) of very large and small roofing companies that are in bankruptcy or even have company officials in jail due to unscrupulous business practices taking advantage of homeowners. And there are too many stories of Homeowners having liens filed against their homes even after their contractor has been paid but the contractor failed to pay the supplier of the materials. Protect yourself and your home by following the steps above.

WHY SHOULD I USE A STATE LICENSED CONTRACTOR FOR MY HOME IMPROVEMENT PROJECT?

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Why use a state-licensed contractor in Georgia?

It’s the law. The “good ole boy” and “hand shake agreement” days are over in Georgia.

In my 24 years’ experience, I’ve found that many homeowners don’t know the difference between a state-licensed contractor and a contractor holding only a local business license. This is like comparing night to day. Just about anyone with a business checking account and $100 can get a local business license and call themselves a contractor.

But this is not the case for the Georgia State General Contractor License. Any remodel work that costs over $2,500 requires a state license to contract and perform. If a homeowner chooses to work with a non-state licensed contractor for a higher-end job, the contract might be unenforceable if there are problems. That means lost time and money to the homeowner, as well as still having a project to complete.

Who is required to hold a state license?

As of July 2008, a license from the Georgia State Licensing Board for Residential and General Contractors is required for someone to call himself a general contractor, and his or her services aren’t limited to any specific type of work. However, work costing less than $2,500 does not require a state-licensed contractor.

The only exception is any work which falls under the licensing requirements of Chapter 14 of this title, which cannot be performed unless the general contractor has an additional license. Chapter 14 protects homeowners, renters and others against faulty and unsafe electrical, plumbing, utility and HVAC contracting and installation.

How does a contractor qualify to take the examination for a state license?

Because the license’s main purpose is to protect consumers, the procedure is thorough. Before even taking the exam, an individual must:

  • Complete the application
  • Prove that he or she possesses good character and is otherwise qualified in:

o       Competency

o       Ability

o       Integrity

o       Financial responsibility

  • List all individuals, entities and business organizations affiliated with the applicant as a licensed general contractor, including employers, owners, directors, partners or members
  • Provide proof of general liability insurance of at least $500,000 and of workers´ compensation insurance in the applicant’s name
  • Provide social security number/s
  • Verify current state and federal tax payments

Once a contractor is licensed, he or she must maintain licensure and insurance coverage; any lapse in insurance or licensure could mean non-renewal. If any information required to be on file changes – including current mailing address, insurance coverage and affiliations – the licensee must notify the general contractor division in writing within 30 days. For more information, see:http://www.sos.georgia.gov/plb/contractors/Lower%20Tier%20Notice.pdf

In conclusion

It is always your best and safest choice to do business with a legal, credible and financially sound state-licensed contractor, even when contracting on projects costing less than $2,500. This ensures that you are dealing with someone who has gone through rigorous background, criminal, moral and financial worthiness checks by the state of Georgia.

Always do your research on any contractor you consider to perform work on your home, keeping in mind that it is probably your largest investment. You will find that the state-licensed contractors will be much more credible and have better ratings simply because they have to in order to keep their license. At the time of renewal for the state license, the contractor is re-evaluated to make certain that they are still qualified to be licensed, including checks on criminal record, and if they’re current on state and federal taxes and financials. This is all added peace of mind for you.