Florida Roofers and Insurance Fraud
Devastating storms and hurricanes have forced many Florida homeowners to contend with fraudulent roofing contractors. These roofing contractors prey on vulnerable homeowners that are looking for a quick fix and a return to the norm. In this brief article, a roofing lawyer in Florida will discuss an insurance scam that is leaving homeowners powerless. To ensure that your roofing company maintains compliance with all state and federal laws, consult with a roofing attorney in Florida.
An Assignment of Benefits
Florida law allows homeowners to sign over their insurance claim benefits and rights to a third party. In some instances, this party can be a roofing contractor. This contract allows a roofer to file a claim, collect insurance payments, and have full control over the repair and replacement process all without the homeowner being involved. This contract is known as an assignment of benefits (AOB). While it’s intended to help homeowners advance through the claims process, AOBs have a tendency to be abused by deceitful roofing contractors.
This is exactly what happened to a Florida homeowner who signed over his insurance rights to a roofing company. Once the ink dried, the roofing company accepted nearly $15,000 dollars from the insurance company and proceeded to perform absolutely no work. While you might think that the homeowner could just contract with another roofer, an AOB is a legally binding contract that can come with financial penalties if broken.
Avoiding Roofing Fraud
The roofing contractor that defrauded the above homeowner and others has been arrested and charged with insurance fraud, forgery, and grand theft. When fraudulent roofing contractors take advantage of homeowners, it makes it more difficult for honest roofing contractors to thrive in this industry.
While the insurance fraud described in this article is perpetrated intentionally, many contractors unintentionally fail to account for all local and federal laws in their day-to-day operations. For this reason, it is imperative that roofing companies take steps to ensure that they avoid roofing fraud in all its forms. This may mean acquiring experienced legal representation. For any questions regarding the roofing laws in the Sunshine State, consult with a roofing lawyer in Florida.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.