Main MenuA new and growing trend continues to develop throughout the Colorado roofing and restoration industry, that is of growing concern. The trend is roofing contractors choosing to perform improper repairs of hail and wind damaged roof systems, solely in exchange for higher profit margins and quicker project completion and payment. Specifically, with regards to roof coatings.
The progression and advancement of elastomeric roof coating systems over the past several years has been quite remarkable. Prior to these advancements, the elastomeric coatings available in the marketplace, while certainly useful; were far more limited in their effective uses. Today there are coating manufacturers who offer a 50-year warranty of their coating systems when properly installed, which is quite impressive. Some of these coating systems are capable of being installed on types of roof surfaces that previously was not possible, which has opened up many doors from a maintenance a repair perspective for property owners.
However, the advancement of these coating systems has led to a growing trend of contractors opting to advocate the coating of hail and wind damaged roof systems, when they should absolutely be replaced in their entirety. Our office continues to see more and more contractors proposing these types of coating to property owners, and insurance adjusters (and even our office) in the event of hail and win loss, which is quite troubling.
As we have further researched and investigated this emerging trend, the reason for contractor’s advocacy of these repairs appears to be quite simple. The insurance claims environment is such, that roofing contractor simply do not have the technical expertise or the fortitude to take on the significant process and time associated with the process of adjusting a claim, especially when roof damages are disputed with an insurance company and their experts. The general nature of the claims environment is one in which insurance companies, numerous experts, public adjusters and attorneys, engage in significant and time-consuming claims adjusting processes in order to arrive at the proper repairs of damaged roof systems. When alternatively faced with the opportunity to quickly get an insurance company to agree to a coating (which is significantly less expensive for an insurance company), it appears many contractors are jumping at the opportunity; and given the significant reduction in possible financial exposure, insurance companies seem to be jumping at the chance to reduce their likely claims payments, when compared to complete roof replacements. This provides contractors a suggested repair method that aids in quickly turning over claims, performing repairs and getting paid now, rather than dealing with the time associated with advocating proper repairs when damages and repairs are disputed.
The effect of this trend upon policyholders is tremendous, these coatings are an improper repair in most situations, when compared to what the insured is actually owed for. When a roof system is damage by hail or wind to the point that it must be replaced, the installation of a coating does nothing to fix those damaged materials, the coating is a band aid that will prevent water intrusion for a time, but it is not a permanent repair.
Further driving this trend is the fact that these coatings can be sold at a very high profit margin, and can be quickly agreed upon with an insurance company. As a result, we are seeing significant numbers of roofing contractors willing to advocate a coating in a situation where the roof unequivocally should be replaced, opting to double their profit margins and reduce their time until payment, had they actually advocated the proper roof repairs…..all at the expense of the policyholder.
This troubling trend should come as a warning to policyholders of the risks and sacrifice of allowing roofing contractors, or other contractors, to represent them in the adjustment of an insurance claim; rather than seeking assistance from qualified experts such as public adjusters or attorneys. While Colorado (and most other states) prohibit the on unauthorized practice of public adjusting, the truth is the practice is widespread and rampant, and most divisions of insurance do not have the financial backing to pursue and prosecute offenders. All policy holders should be very leery of a roofing contractor who suggests a coating as a proper and permanent repair, following a significant hail or wind event, and should seek professional advice from a licensed public insurance adjuster or attorney.