A friend signed with a Storm chaser contractor. Scam?

[billspit]

Never hire a contractor that knocks at you door unsolicited.

 

[redneckcharlie]

Not really. Most of the time I submit an estimate, we argue about it for a while
, then they send me a cheque for the full amount excluding the amount of the deductible. Then I do the work and the customer pays me the deductible when they're satisfied.
If I get caught waiving a deductible the insurance company kicks my ***, they demand that if you're going to give a discount, you give the discount to them, not the customer.

Im surprised you posted that response. Its so ignorant and unprofessional it doest warrant any further attention.

 

[CNGsaves]

Had some of those scammers in KS going door to door. They have to register now and provide WRITTEN and Oral right to cancel the contract within 3 days.
One got busted and had to pay penalty for failure to disclose proper information.

OP's situation has all the "Smell and Feel" of a scam.

+1 to exercise right to CANCEL contract within 3 days.

 

[redneckcharlie]

It's quite a bit different than a consumer using a 10% off coupon. The 10% off coupon is part of an agreement that a store enters into with a consumer. An insurance deducible is part of a contract between a HO and their insurance company. A contractor is not a party in such a contract..and an attempt to collude with a HO to effect such a contract can be considered fraud...no matter how well meaning.

The state of Texas and a believe a few others seem to disagree with you as to it's legality.

Section 27.02 of the Texas Business and Commerce Code
BUSINESS AND COMMERCE CODE

TITLE 3. INSOLVENCY, FRAUDULENT TRANSFERS, AND FRAUD

CHAPTER 27. FRAUD

Sec. 27.02. CERTAIN INSURANCE CLAIMS FOR EXCESSIVE CHARGES. (a) A person who sells goods or services commits an offense if:

(1) the person advertises or promises to provide the good or service and to pay:

(A) all or part of any applicable insurance deductible; or

(B) a rebate in an amount equal to all or part of any applicable insurance deductible;

(2) the good or service is paid for by the consumer from proceeds of a property or casualty insurance policy; and

(3) the person knowingly charges an amount for the good or service that exceeds the usual and customary charge by the person for the good or service by an amount equal to or greater than all or part of the applicable insurance deductible paid by the person to an insurer on behalf of an insured or remitted to an insured by the person as a rebate.

(b) A person who is insured under a property or casualty insurance policy commits an offense if the person:

(1) submits a claim under the policy based on charges that are in violation of Subsection (a) of this section; or

(2) knowingly allows a claim in violation of Subsection (a) of this section to be submitted, unless the person promptly notifies the insurer of the excessive charges.

(c) An offense under this section is a Class A misdemeanor.

Added by Acts 1989, 71st Leg., ch. 898, Sec. 1, eff. Sept. 1, 1989.

Guess we'll just have to disagree about the matter. BTW I work in the construction field for a small contractor. Your "us" against "them" rings a little hollow on me.

We can agree to disagree, thats fine. Texas does not require licensing for general contractors. Im aware of the statute you posted in TX. Its one of those deals thats on the books but has never been enforced, not to my knowledge. I do work in Tx a few times a year for clients here that also reside there. Im not sure what your us against them comment has to do with. This isnt an adversarial situation normshould itmever be between a contractor and a homeowner. I to am in the field, a gc, licensed, bonded, and insured with an A+ rating with the BBB.

 

[Scott H in Wheaton]

It really depends on your insurance. In past cases I give the insurance company a quote from a local licensed guy and they mail me a check. I can do what I want with it.

True, but if you don't use the check to replace the roof, and provide proof to the insurance company the work was done, you will not have coverage again on your roof.
Unless you can prove the roof was replaced, the insurance company will say "prior damage, unrepaired from last claim"

 

[Scott H in Wheaton]

Not really. Most of the time I submit an estimate, we argue about it for a while
, then they send me a cheque for the full amount excluding the amount of the deductible. Then I do the work and the customer pays me the deductible when they're satisfied.
If I get caught waiving a deductible the insurance company kicks my ***, they demand that if you're going to give a discount, you give the discount to them, not the customer.

Exactly. The consumer agreed with the insurance company to pay a deductible, the insurance company is paying 90% or so, if there is a discount to be had, the insurance company wants it.
Some states (not all) call it insurance fraud...claim one price, but have the work done for a different price.

 

[KenC]

So a buddy of mine at work informed me that he signed a deal with a construction company that knocked on his door after a hail storm. There was a bad hail storm about a month ago in his area. This guy from this construction company is knocking on everyone's door in the area. This company claims that they will supposably find everything wrong with his house and get his insurance to pay for it and they guaranteed him that he won't even have to pay the deductible. The company is located almost two hours from this small town that had the hail storm. My buddy already signed a paper allowing this contractor to negotiate with his insurance company. His insurance is sending an adjuster on Wednesday and this guy from the construction company will be there to meet with the adjuster. I am concerned that my coworker is being scammed somehow. Is this a popular scam? What kind of questions should my coworker ask and what should he be concerned about? Thanks for any information.

The red parts simply means the company is going to add the deductible amount to their normal price, then waive it. Nobody is going to get an insurance company to forgo the deductible, and nobody is going to discount their fair labor/materials price by that much. so the only other explaination, is the shell game I mentioned, add then subtract. Shady.

 

[blair683]

Another guy I work with said that the same type of people came to his house. He said they had this huge list of stuff they wanted the insurance to pay for and they only planned to do half of it. They told him that's how they make their money. He chased them off and was smart enough not to sign anything.

 

[Dick in Wisconsin]

Had your buddy talked to his insurance agent about this? That is where I would start.

I hope your buddy didn't sign a limited power of attorney.

 

[blair683]

That's what he is going to do tomorrow. He is going to contact his insurance and tell them about the situation he is in. See what they think. Surely they have seen/ dealt with it all. I'll keep yins posted about the outcome.

 

[mm08822]

So a buddy of mine at work informed me that he signed a deal with a construction company that knocked on his door after a hail storm. There was a bad hail storm about a month ago in his area. This guy from this construction company is knocking on everyone's door in the area. This company claims that they will supposably find everything wrong with his house and get his insurance to pay for it and they guaranteed him that he won't even have to pay the deductible. The company is located almost two hours from this small town that had the hail storm. My buddy already signed a paper allowing this contractor to negotiate with his insurance company. His insurance is sending an adjuster on Wednesday and this guy from the construction company will be there to meet with the adjuster. I am concerned that my coworker is being scammed somehow. Is this a popular scam? What kind of questions should my coworker ask and what should he be concerned about? Thanks for any information.

Hopefully there is a 3 day cooling off period and that is hasn't expired yet. I would also make sure that the contractor and adjuster are in agreement on the work required and to be covered. HO, should void that contract if still within 3 day period. Get a detailed estimate with qtys and material brand names. Also include rates for sheathing damage repair in quote. Every contract can be changed before it is signed. Even after, just with less leverage.

If this guy is shady, he wants your money and to run with it. Make payments conditional on performace. Like i pay half, at the end of the day for tear off and materials are up on the roof.

Final payment after completion and cleanup. Maybe even a 30 day retain to have some ability to check for leaks.

Talk with insurance adjuster. He is there to protect his ins. co. And you. If the contractor is one of their prefferred, then he should be able to tell you about him. If you do have damage, seek your own local contractor that you have seen in area.

Also get references and go see the job. Ring the doorbell and talk for 15 minutes. Say thanks and give them gift card to local eatery. A few bucks out of your pocket to know you aren't getting bent over is good insurance. Maybe you even get a watchout or two, to tell contractor do/dont whatever.

 

[blair683]

The contract had a three day drop out period. That has expired by a few days now.

 

[rburke65]

I don't think "storm chaser contractor" is a correct handle. He will have to check into the company further.

 

[andys]

No deductible!

Sign here and we'll help you commit fraud!

Yeah, they're either a scam or immoral. Either way, don't go down that road.

 

[Al G]

This is completely incorrect. All the insurance companies write and break there estimates down to line items and are very specific. The contractor has nothing to do with the estimate from the insurance company. They can however point out something they may have missed. Most insurance companies hold back the depreciated value until the work is complete. The mortgage holder in every job I've done will not endorse the final payment from the homeowners insurance company without verification the work is complete. Some insurance companies, like USAA will require the contractor to break down there invoice by line item as well before they'll pay the final payment. This goes with an inspection and photos as well.

That exactly describes my experience last year with USAA and my mortgage company.

 

[Scott H in Wheaton]

Suppose you and a friend decide to meet for dinner, and being old friends you decide to split the check. Total bill is $40. Your buddy Hands the waitress a $20 bill. You pull out a coupon that says "Buy one dinner, Get one Free!" and you hand it to the waitress for 'your portion'.
Do you think your buddy would feel ripped off? You agreed to split the tab and he ended up paying the whole thing.

That is how insurance companies view deductibles.

 

[PETE14]

Wow, what a timely thread. Parts of Denver just got nailed with a bad hail storm at the beginning of May. Very bad. A friend of mine said it was the worst financially in the history of Denver. Another person (the guy below) said the total claims are expected to be over $1 billion. I'm not for sure if that is true, but that's what I heard.

Anyway, I had one of these clowns knock on my door a few days ago. Similar situation. He said he would do a free inspection and claimed that I would have no deductible to pay. He hands me a business card with a local company, with his name and phone number hand written on it (non local area code). His vehicle is a newish Ford pickup with no logo's on it. With Florida plates. I asked about the plates being out of state, and his response was that the company is nationwide, and could not handle the current work load, so they were bringing in extra company people from out of state to help. Plausible I guess, but that added nothing to his "zero" credibility.

I debated telling him to get lost, but decided to let him do the inspection. We both went up on the roof and walked around. He pointed out quite a few spots that he claimed were bad. There were some marks, and honestly I'm not sure how bad they really need to be to be worried about.

I guess I will probably get a second opinion from a roofing company of my choosing, and then if necessary call the insurance company. The above guy will not be getting any business from me, though.

 

[ard]

Suppose you and a friend decide to meet for dinner, and being old friends you decide to split the check. Total bill is $40. Your buddy Hands the waitress a $20 bill. You pull out a coupon that says "Buy one dinner, Get one Free!" and you hand it to the waitress for 'your portion'.
Do you think your buddy would feel ripped off? You agreed to split the tab and he ended up paying the whole thing.

That is how insurance companies view deductibles.

Well, I don't view insurnace companies as an old friend...