How do you avoid storm chasers and roofing scams?

The warning signs

• They knock on doors right after a storm and say your roof is "definitely" damaged before looking closely.
• They offer to pay, waive or "work with" your deductible.
• They say they will "handle the insurance company" for you.
• They want you to sign today, often a "contingency agreement" or "inspection authorization" that is really a contract.
• They ask for a large cash deposit, or for the insurance check to be signed over before work starts.
• No local address, out-of-state plates, no license number on the paperwork.
• Someone climbs on your roof without being asked. (Some scammers create damage.)

What does Tennessee law say?

Tennessee's residential roofing services law (Tenn. Code Ann. § 62-6-601 and following) says that before you sign, a roofer must give you in writing its mailing address, phone number, any contractor, home improvement, or public adjuster license numbers, a detailed description of the damage and repairs the contract covers, and a notice that you may cancel until midnight of the third business day after your insurer tells you in writing that all or part of the claim is not covered. If you cancel, payments other than for emergency repairs already done must be returned within 10 business days.

In Tennessee, a contractor license from the Board for Licensing Contractors is required for projects of $25,000 or more, including labor and materials. In Knox County (one of nine counties that adopted the law), residential remodeling and repair jobs, roofing included, from $3,000 to $24,999 also require a state Home Improvement license, which requires a $10,000 bond and proof of liability and workers' compensation insurance. Blount, Anderson, Sevier and Loudon counties have not adopted the Home Improvement law, so for smaller jobs there, ask for proof of insurance and check the local permit office. You can check any state license at verify.tn.gov. Check a license.

Before you sign anything

1. Get the company's full name, local address and license number, and look it up.
2. Ask for a certificate of insurance (liability and workers' compensation) sent directly from the insurance agent.
3. Get at least two written estimates from local companies.
4. Read the contract for the scope, materials, price, start and finish dates, cleanup, warranty, and what happens if the insurer denies the claim.
5. Don't pay in full up front. Don't sign over an insurance check before the work is done.

Assignment of benefits

Some contracts transfer your insurance claim rights to the contractor. Read assignment of benefits before signing one.

Where to report a scam

Report suspected fraud to your insurer, to the Tennessee Department of Commerce and Insurance (615-741-2241), to the state contractor licensing board, and to local law enforcement. The Federal Trade Commission also takes reports of scams after disasters.