Dr. Roof or Dr. Roof Adjuster? Restoration Contractors and Roofers Need to Be Careful and Not Overstep into Adjusting Claims, Subjecting Them to Criminal Prosecution

Nobody likes to be told not to do something. So, I am writing this blog post understanding that my contractor friends, who I have written about in many posts such as Restoration Contractors Providing Great Quality Workmanship Are Policyholder Friends But Many Insurance Companies Refuse To Pay For Quality, and The Hero Contractor: Being a Contender and Not a Pretender, may need to be reminded not to shoot the messenger and that all of us must follow the law.

I listened intensely to Tim Varga at the Georgia Association of Public Insurance Adjusters Fall Conference in Atlanta on Tuesday. Tim gave a presentation on Catastrophic Consulting and Demystifying the Unlicensed Practice of Public Adjusting (UPPA). While he was making the presentation, which showed how roofing companies could be in violation of Georgia criminal law regarding the practice of public adjusting, I made a simple Google search of “Georgia roof claims and insurance help.” Numerous roofing companies appear to be advertising to help policyholders make roof insurance claims, based on the results of my search.

Dr. Roof is one such advertiser. Dr. Roof offers services that closely resemble those typically provided by licensed public adjusters. They state that they will:

Inspect the property for damage
Document the damage with photos and measurements
Review the insurance policy
Assist in filing the claim
Meet with the insurance adjuster
Negotiate with the insurance company

These activities, particularly reviewing the policy to assist in the insurance claim, assisting with claim filing, and negotiating with the insurance company, seem to be crossing the line into public adjusting. If so, Georgia has severe criminal penalties for even advertising to do such activities without having a law or public adjuster license. Georgia defines what public adjusters can do and requires those doing so to be licensed. By offering services that may be considered public adjusting without the proper licensing, Dr. Roof could be violating state criminal regulations.

Specific problematic statements by Dr. Roof that could be interpreted as offering public adjusting services include the following:

“We’ll review your insurance policy to ensure you receive the full benefits you’re entitled to.”
“Our team will assist you in filing your claim and provide all necessary documentation to your insurance company.”
“We’ll meet with your insurance adjuster to discuss the extent of the damage and necessary repairs.”
“If needed, we’ll negotiate with your insurance company to ensure you receive fair compensation.”

These statements suggest that Dr. Roof is actively participating in the claims process beyond the scope of a typical roofing contractor. If accused of unlicensed practice of public adjusting, Dr. Roof could face legal consequences, including fines, cease and desist orders, criminal prosecution and other penalties as determined by Georgia law.

When I give classes to insurance restoration contractors, I tell them they should get the policy to make certain they can determine how they are going to get paid. I also warn them to “stay in your lane” and not to get involved with negotiating the claim and doing more than reviewing the policy for their own interests. I previously wrote about this concept of staying in one’s lane in Should You Hire an Attorney to Fix Your Roof? Should You Hire a Roofer to Argue Your Roof Insurance Claim in Court:

A basic legal rule may be in order for all to remember. Just because you write something like, “I am not a lawyer and not giving legal advice,” does not absolve you from the legal consequences when your actions demonstrate that you have been practicing law without a license. The same is true for any person conducting themselves as a public adjuster, engineer, and any number of trades where the state requires that the individual be licensed. You cannot be unlicensed and do those activities without breaking the law.

So, just because this contractor advertises that it is not a public adjuster does not absolve its adjusting actions….

Americans hate to be told that we cannot do something. I feel the same way. Yet, most states regulate who can fix roofs, who can provide engineering services, who can practice law, and who can practice public adjusting to protect our fellow citizens from those who do not have the credentials.

I have written that Contractors Cannot Legally Negotiate Insurance Claims. At the same time, I noted in that same post that it is perfectly acceptable for restoration and contractors to discuss pricing and methods of fixing damage:

Contractors can and should discuss the damage they find and costs of repairs with insurance adjusters. The Arizona Department of Insurance clearly indicated this was acceptable:

It is not unusual for a property owner’s contractor to discuss the details of building damage with the insurance company’s adjuster, particularly when there is extensive or complex damage. Often the contractor’s expertise is essential to identify precisely what was damaged, the extent of the damage, and the cost to repair it….

So, the warning of this post is to follow the law. If a restoration contractor has even the slightest concern that its online advertising or actions are violating state law, the contractor should hire competent legal counsel immediately to review the advertising and its actions to make certain laws are followed.

Thought for The Day

Honesty and integrity are absolutely essential for success in life – all areas of life.
 —Zig Ziglar