Tennessee Cracks Down on Roofing Contractor Fraud

Roofing contractors operating in Tennessee will have to provide residents whose homes are damaged due to tornadoes and other storms with more information about their company and about their rights to cancel contracts under a new law.

Gov. Bill Haslam recently signed a law that comes into response to complaints from homeowners following storms over the past several years.

In 2011, a number of tornadoes swept through the Midwest and South causing billions of damage. A hail storm that passed through in the Knoxville and Nashville later that year also damaged many homes and businesses. The state was flooded with out-of-state roofing contractors who along with some in-state roofers or individuals posing as roofers reportedly took advantage of homeowners.

Tennessee Department of Commerce and Insurance spokesperson Christopher Garrett said that the department doesn’t specifically track roofing complaints. However, he said, the department did hear from more homeowners concerning repairs.

“As far as statistics go, the Contractors Board received an increase in home improvement complaints from victims of the 2011 storms,” said Garrett.

Sponsored by Sen. Bill Ketron (R-Murfreesboro), SB2714/HB 2915 requires that roofing contractors whose work is covered by an insurer must provide a homeowner with their address, telephone number, license registration, email address, and a detailed description of all damage and repairs.

The contract must also contain a form notifying homeowners of their right to cancel a contract within three days after signing and/or receiving a written statement from their insurer that the contract is not a covered claim. Once a contract is cancelled, roofing contractors have 10 business days to return any payments to the homeowner, except for emergency repairs.

Roofing contractors or their agents are also prohibited from telling homeowners they can negotiate a claim with an insurer unless they are also a licensed public adjuster.

Any violations of these laws would be covered under Tennessee’s Consumer Protection Act of 1977.