Alert: Alarming Roofing Scams in Colorado Springs

Beware of roofing scams in Colorado Springs: Shady roofing contractors in Colorado Springs are using new tricks to manipulate insurance claims, leaving homeowners with unexpected bills and driving up premiums.

Recently, two homeowners from Monument shared their ordeal: what should have been a straightforward roof replacement turned into a costly nightmare. They had reached out for help after a delay in installation due to a family emergency. Assured by the contractor that the hail claim would be “simple,” they found themselves trapped in a web of deceit.

The contractor offered to handle everything and even promised to waive the deductible. But when the couple reviewed the paperwork—documents they thought were for a standard inspection—they discovered they’d signed over control of their insurance claim to the contractor and his recommended public adjuster. Suddenly, they were legally bound to pay the deductible and lost control over their claim.

Attempts to get estimates and documentation were met with silence and evasion. When they tried to back out, they were threatened with penalties and even a lien on their property.

This incident highlights the loopholes that some contractors exploit, despite recent laws targeting “Assignment of Benefits” (AOB) abuse. Tactics now include enlisting public adjusters before homeowners even contact their insurers and using “Direction to Pay” contracts, which allow contractors to receive insurance payouts directly, sidelining the homeowner.

The roofing contractor claimed the paperwork was clear about fees and public adjuster involvement, placing blame on the homeowners for not endorsing a settlement check. Yet, their story serves as a vital warning to others.

Here are 10 common roofing scams reported in Colorado Springs:

1. Storm Chaser Scam: Contractors from out of state appear after major storms, offering quick, cheap repairs, often disappearing before completing or honoring warranties.
2. Upfront Payment Scam: Scammers demand full payment upfront but then disappear without doing any work.
3. Low-Bid Bait and Switch: Offering a low estimate to get the job, then dramatically raising the price once work starts, citing “unforeseen issues.”
4. Insurance Fraud: Claiming to work directly with insurance companies, these contractors may inflate damages or falsify claims, putting homeowners at risk of denied claims.
5. High-Pressure Sales Tactics: Scammers use aggressive tactics to push homeowners into signing contracts immediately, often for unnecessary repairs.
6. Unlicensed Contractors: Workers without a valid license offer low rates but provide subpar, unsafe work with no accountability or recourse.
7. Fake Damage Claims: Scammers create or exaggerate damage during inspection to justify expensive repairs that aren’t needed.
8. Material Swapping: Using cheaper materials than agreed upon to cut costs, leading to poor-quality roofs that won’t last.
9. Warranty Fraud: Offering fake warranties or failing to honor them, leaving homeowners with no protection for faulty work.
10. Ghost Repairs: Charging for work that was never actually done or providing photos of “completed” work from other projects to deceive homeowners.

Staying aware of these scams can help Colorado homeowners protect their property and ensure they only work with trusted, verified contractors.

Protect Yourself from Roofing Scams in Colorado Springs:

These scams are costly and frustrating, but you don’t have to navigate them alone. If you’re facing a challenging roofing claim or feel uncertain about your options, I’m here to help you get the fair, transparent guidance you deserve.

• Look for well-established, licensed, insured, and bonded roofing professionals with a federal tax identification number and a permanent business address.
• Request the contractor’s license number and confirm with your local building department that it was issued by them and is current.
• Verify that the contractor is registered to conduct business in Colorado at https://www.sos.state.co.us/biz/BusinessEntityCriteriaExt.do.
• Ask to see the contractor’s certificates of insurance. Confirm with the insurer that the certificate is valid, the contractor is endorsed for roofing work, and their liability and workers’ compensation coverage is up-to-date.
  Consumer Tip: Check how many employees are covered by the policy. A low number may indicate that the contractor hires temporary workers who may lack roofing experience.
• Avoid hiring contractors who approach you at your door after a storm. Most reputable roofing contractors don’t operate this way.
• Contact the Colorado Roofing Association (CRA) at coloradoroofing.org for a list of licensed, insured, professional contractors who abide by the CRA Code of Ethics and have passed a national roofing exam.
• Check the Better Business Bureau (bbb.org/coloradosprings) for complaints filed against any contractor you are considering.
• Obtain multiple estimates before making a decision.
• Ask for references, specifically of other homes in your area, and check them.
• Review and understand all documents sent to your insurance carrier.
• Never pay in full or sign a completion certificate until all work is finished.
• Don’t be pressured into signing a contract immediately. Avoid contracts with blanks or vague terms such as “see insurance estimate.” Fraudulent contractors might add unacceptable terms later.
• Ensure any contract you sign complies with Colorado Senate Bill 38, including:
• Scope of work and materials to be provided.
• Cost based on known damages at the time of signing.
• Approximate service dates.
• Roofing contractor’s contact information.
• Identification of the contractor’s surety and liability insurer, along with contact details.
• Contractor’s policy on cancellation and refund of any deposit, including a rescission clause allowing you to cancel and receive a full refund within 72 hours.
• A statement that, if you’re using insurance, the contractor cannot cover or reduce your deductible in part or in full.
• A statement ensuring the contractor will hold any payment in trust until they have delivered materials or completed a significant portion of the work.
• A statement allowing you to rescind the contract within 72 hours of your insurer’s notification if your claim is denied.

What is the No Roof Scams Campaign?

The No Roof Scams campaign is a collaborative initiative in Colorado aimed at combating roofing contractor fraud, particularly during severe weather seasons when such scams are prevalent. This public education effort seeks to inform homeowners about the risks of roofing fraud and provide guidance on selecting reputable contractors.

Key Objectives of the No Roof Scams Campaign:

• Raise Awareness: Educate homeowners about common roofing scams that emerge after severe weather events, such as hailstorms.

• Provide Resources: Offer tools and information to help homeowners identify and avoid fraudulent roofing contractors.

• Promote Best Practices: Encourage the selection of licensed, insured, and bonded roofing professionals with established reputations.

Organizations Participating in the No Roof Scams Campaign:

• Better Business Bureau – Southern Colorado
• Colorado Division of Homeland Security and Emergency Management
• Colorado Division of Insurance (Department of Regulatory Agencies)
• Colorado Roofing Association
• Insurance Institute for Business & Home Safety
• National Insurance Crime Bureau
• Property Casualty Insurance Association of America
• Rocky Mountain Insurance Information Association