This article is provided courtesy of NLC Insurance Companies.
With storm season underway, we’re sharing this helpful article from NLC Insurance Companies on how you can spot and prevent roofing fraud.
As an independent insurance agent, you are often the first call after a storm — and sometimes the last line of defense between your client and a costly roofing scam. Across Connecticut, Rhode Island, and Massachusetts, roofing fraud is increasing, particularly after weather events such as windstorms, hail, heavy snow, or Nor’easters.
These schemes don’t just hurt insurance carriers. They put your clients at financial and legal risk, complicate claims, and ultimately contribute to rising premium costs. At NLC, roofing-related claims tied to questionable contractor behavior are becoming more common. This guide is designed to help you recognize the warning signs early, educate your clients, and reinforce your role as a trusted advisor.
What Roofing Fraud Really Looks Like
Roofing fraud occurs when the condition of a roof or the cost of repairs is intentionally misrepresented to trigger or inflate an insurance claim. While it can involve contractors, adjusters, or even homeowners, many cases begin with aggressive contractor solicitation after a storm.
Common scenarios your clients may describe include:
- A contractor who “noticed damage” while working nearby
- A free inspection followed by promises to “handle everything with insurance”
- Statements like “you qualify for a brand-new roof at no cost” or “your insurance owes you a replacement”
Once paperwork is signed — sometimes including assignment-of-benefits language — clients can lose control of the claim. At that point, even well-meaning homeowners can be pulled into misrepresentation or fraud without fully understanding the consequences.
Why Roofing Fraud Becomes a Problem
When roofing fraud enters the picture, everyone loses.
For your clients, the fallout can include:
- Out-of-pocket costs for unnecessary or poorly performed work
- Claim denials or reduced settlements due to exaggerated or false information
- Liability exposure if an uninsured or unlicensed contractor is injured on-site
- Potential legal consequences, since submitting false information — knowingly or not — may constitute insurance fraud under CT, RI, or MA law
For agents, these claims often lead to uncomfortable renewal conversations, coverage restrictions, or premium increases that could have been avoided with early guidance.
Why New England Is Ripe for Roofing Scams
While Florida gets most of the headlines, New England presents its own unique risk factors:
- Older housing stock with aging roofs
- Frequent wind, ice, and snow events
In Connecticut, Rhode Island, and Massachusetts, fraudulent activity typically spikes after:
- Wind or hail events (coastal and inland)
- Hurricanes, named storms, or Nor’easters
- Convective storms
- Snowstorms, heavy snow loads, and ice dams
Contractors may engage in storm chasing, door-to-door solicitation, high-pressure sales tactics, or illegal “no deductible” offers. These practices should immediately raise red flags for both you and your clients.
Contractor Fraud vs. Insurance Fraud: What Agents Should Explain
These two concepts often overlap, but the distinction matters.
Contractor fraud involves deception directed at the homeowner, such as unlicensed public adjusting services, overbilling, substandard materials, or billing for work not done.
Insurance fraud involves misrepresentation made to the insurer to obtain payment not owed, such as inflated estimates, staged damage, or falsified photos.
A dishonest contractor can easily pull a client into both. When exaggerated claims are submitted, the result may be denial, cancellation, or referral to a state fraud bureau — outcomes no agent wants for their client.
What Homeowners Policies Actually Cover — and What They Don’t
As an agent, setting expectations is critical.
In Connecticut, Rhode Island, and Massachusetts, standard homeowners policies are designed to cover sudden and accidental damage, such as:
- Wind and hail
- Fire or lightning
- Falling trees or debris
- Sudden ice or snow collapse
In general, they do not cover:
- Normal wear and tear
- Aging or deterioration
- Poor maintenance
- Cosmetic damage without functional impact
If a contractor claims insurance will pay simply because a roof is old, that’s your cue to advise the client to pause and call you.
State-Specific Legal Protections Agents Should Know
Understanding contractor requirements helps you steer clients away from risk.
Connecticut
- Contractors must be registered as Home Improvement Contractors (HIC) with the Department of Consumer Protection
- Written contracts are required
- Clients have a three-day right to cancel contracts signed at home
Rhode Island
- Contractors must be registered and insured through the CRLB
- Registration numbers must appear on contracts and advertising
- Unregistered work can result in fines or prosecution
Massachusetts
- Home Improvement Contractors must register with OCABR
- Written contracts are required for jobs over $1,000
- There are limits on deposits and strict rules around representations
Hiring an unregistered contractor can strip homeowners of key protections — an important point for agents to reinforce.
How You Can Help Clients Avoid Roofing Fraud
Encourage your policyholders to contact you before signing anything. Share this practical checklist:
Before Hiring
- Verify contractor registration and licensing
- Request proof of liability and workers’ comp insurance
- Obtain multiple written estimates
- Avoid unsolicited door-to-door offers
- Never sign an assignment of benefits
During the Job
- Keep documentation and photos
- Avoid large upfront payments
- Monitor progress closely
After Completion
- Inspect work against the contract
- Request lien waivers
- Report suspicious behavior immediately
Early intervention from an agent can prevent months — or even years — of fallout.
Have questions about your coverage or storm damage? Contact Hunter Insurance at (800) 696-4678 or visit hunterinsurance.net.