1. Low Starting Bid
Some contractors will offer you an extremely low estimate, one that is far lower than any competitor you’ve talked with. Once the work starts, the price could creep up due to “unforeseen problems” and “inflated material costs”.
2. No Credentials, Insurance, or Permits
- A telltale sign that you’re getting ripped off by someone claiming to be a professional roofer is when they cannot produce the necessary credentials needed to legally complete the job. If a roofer is reluctant to provide a copy of their license or they can’t provide proof of insurance, this is a red flag.
3. Large Down Payment
Another is when the contractor asks for a ridiculously large deposit or down payment. Many roofers don’t require a down payment and can order materials and supplies without it, while some may require a reasonable deposit of anywhere between 10-15% to cover materials. That being said, if a roofer is asking for more than 20%, don’t go with them.
4. Insurance Fraud
- There are a few types of insurance fraud that a contractor may attempt to commit. One of these is submitting two separate invoices, a lower one to the homeowner, and a much higher one to the insurance company. This is illegal.