- Personal Injury
The weather in Colorado is known for storms and other climate catastrophes that can cause substantial damage to the roof of your home or business. It is important for property owners to be aware of fraudulent practices when they are repairing a damaged roof. Under the Consumer Protection/Residential Roofing Bill, residents of Colorado are afforded protections from roofing fraud. In this blog, we explain what you need to know about the state’s roofing contract rules.
Roofing Contract Requirements
According to the National Insurance Crime Bureau, Colorado has the second highest number of damage insurance claims. The Consumer Protection/Residential Roofing Bill states that a written and signed contract must be in place between the owner of the property and the roofing contractor. The contract has to include the following details:
- The amount of work that will be performed.
- The types of material that will be provided.
- Total costs for the job and necessary materials. These details are calculated based on the known damages at the time the contract was drafted.
- Approximate dates for the work that will be performed.
- Contact information for the roofing contractor.
- Identification and contact information for the contractor’s surety and liability coverage insurer.
- A written explanation of the Contractor’s policy for cancelling a contract and refunding the deposit. There must also be a clause that lets the owner of the property back out of the contract with a full refund within 72 hours of entering into the agreement.
- A statement informing the property owner that the contractor can’t pay, waive, or rebate the insurance deductible in part or in whole if the services are paid for through an insurance claim.
- A statement informing the property owner that the contractor will keep any payments in trust until the roofing materials have been brought to the job site or a substantial amount of work has been performed on the property.
- A statement informing the property owner that they can rescind the contract within 72 hours of receiving notice that their claim has been denied by their insurance company.
If a contractor or property owner fails to adhere to the requirements contained in the Consumer Protection/Residential Roofing Bill, they can end up facing severe penalties.
How to Avoid Roofing Contractor Fraud
The following tips can help you minimize your risk when you are looking for a reputable roofing contractor:
- Ask for the contractor’s license number and verify it with your city/county building department.
- Make sure the contractor has registered with the state of Colorado. You check if a contractor can conduct business by viewing the Colorado Secretary of State’s business database.
- Ask for a copy of the contractor’s certificates of insurance.
- Check if the contractor has passed exams for roofing work on residential and commercial properties. You can get this information by contacting the Colorado Roofing Association.
- Request a list of customer complaints from the Better Business Bureau.
- Always get more than one estimate.
- Carefully review any documents that have been provided to you by your insurance company.
- Do not pay a contractor for the entire job until their work has been completed.
- Check the contract to see if it meets all of the requirements contained in the Consumer Protection/Residential Roofing Bill.
Construction Contract Attorneys in Colorado
At Jorgensen, Brownell & Pepin, P.C., we are committed to helping clients resolve their construction contract disputes. Our lawyers have been drafting construction contracts for people in Colorado for the last 30 years, and we know how to ensure that your rights and interests are fully protected. Let us review your case today.