OCALA, Fla. – Cora Hayes and her husband had just replaced the roof on their Ocala home when she says they were approached by an employee from another roofing company.
The contractor claimed if they had waited, they could have had their roof replaced for just the cost of their deductible — $1,000, Hayes said.
“I think it’s insurance fraud myself,” Hayes said. “I think that the insurance companies are having to pay for something that didn’t get damaged.”
Hayes’s neighbor, Robert Feeney, had a similar experience.
He was approached three times by a representative from the same company, offering a free roof inspection and a low-cost replacement, Feeney said.
Feeney had recently had his roof inspected and declined the offer.
“I think they’re ripping off the insurance companies, all of them, and everybody else is paying for it,” Feeney remarked.
The roofing schemes follow a troubling pattern.
A roofing company conducts an inspection, claims to find damage and encourages the homeowner to file a claim with their insurance. If the claim is denied, the contractor sues the insurance company, forcing it to either settle or fight an expensive legal battle.
This cycle drives up costs, according to lawmakers, contributing to skyrocketing insurance premiums across the state.
“That’s why all of our insurance is going up so high, because of this,” Hayes added.
Florida has become a hotbed for property insurance litigation, with the state accounting for 79% of the country’s property insurance-related lawsuits in 2022, despite making up just 9% of the nation’s insurance claims.
Lawmakers point to roofing schemes as a significant factor in these lawsuits.
Florida’s Chief Financial Officer Jimmy Patronis has seen this issue for years.
“Those individuals are playing in an unethical space (and it) could be illegal, depending on the circumstances,” Patronis said.
The state has held multiple special legislative sessions to address property insurance and passed laws in 2022 aimed at reducing litigation.
Despite the efforts, the problem persists.
“It’s unfortunate,” Patronis remarked. “Just when we think we’ve created the perfect mouse trap, the scoundrels, the bad actors, will find a new way to game the system,” he added.