Beware of the Roofing Insurance Loophole

Spring is a time when severe thunderstorms that produce high winds and damaging hail are most likely to occur. After a potential devastating aftermath that may leave roofs in deplorable conditions, many Colleyville, TX homeowners tend to have a relatively similar experience. Countless flyers are taped to doors, yard sign ads spring up in the neighborhood, and phones begin ringing as roofing contractors make a familiar pitch claiming they can work with insurance carriers to ensure full coverage. Thousands of Bedford, TX homeowners sign up for this deal each year, but few know that it violates Texas law, making the deal illegal, void, and unenforceable.

Beginning in 2003, Texas has required individuals to be licensed as public adjusters if they intend to adjust claims on behalf of those insured. Additionally, public adjusters can negotiate a settlement of a claim under any insurance policy covering real or personal property. While licensed public adjusters are allowed to receive compensation for their services, Texas law statute states the following:

(a) A license holder may not:

(1) Participate directly or indirectly in the reconstruction, repair, or restoration of damaged property that is the subject of a claim adjusted by the license holder,


(2) Engage in any other activities that may reasonably be construed as presenting a conflict of interest, including soliciting or accepting any remuneration from, or having a financial interest in, any salvage firm, repair firm, or other firm that obtains business in connection with any claim the license holder has a contract or agreement to adjust.

So for the purpose of this discussion, it is a violation of the Texas Insurance Code for a public adjuster to profit from both adjusting a claim as well as making the required repairs. Unfortunately, this provision has failed to stop some roofing contractors from engaging in similar conduct. Homeowners in Bedford, TX should ensure that their roofing contractor only performs services that involve replacing or repairing a roof. Quality professionals at Charles Martin and Son Roofing understand this process well has form contracts that are within the statute. If your home or business has been damaged by a recent storm, contact us to learn more about how we can help!