What You Need to Know Regarding Roofing Contracts and Payment
Navigating roofing contracts and payments as a homeowner can seem like a daunting task, especially if you have no legal experience as a first-time homeowner. To add to the stress, there are contractors out there who may be looking to scam you, but if you educate yourself and find a trusted contractor the process will be hassle-free. So, here’s what you need to know about roofing contracts and payments.
What Should be in a Roofing Contract?
First off, as with any professional business, your contractor should have a written, legal contract that outlines what work will be performed, the conditions, and the cost of that work. Some companies will use two kinds of contracts, one for insurance-related jobs and one for jobs that are not covered by insurance. With roofing jobs, there may be rotted decking that can’t be seen until the roof is removed. Since rotted decking needs replaced before the installation of your shingles your contract should also include an estimated cost for this replacement so you are not caught off guard.
Work Beyond Insurance Allowance
If you incur damage to your home from a storm there is a possibility that the insurance will only cover a portion of your roof, siding, or guttering and you will want to replace that material in its entirety so that it is uniform in age and appearance. Maybe you’ve been planning to replace your roof, siding, or gutters and considered upgrading to a higher quality product than what is currently on your home and covered by insurance. If either of these two scenarios describes your situation, your contractor should guide you through the process and provide an estimate outlining the costs beyond what insurance has covered.
Paying for your Roofing Repairs or Replacements
It is important to look for any irregularities in how your contractor requests payment. Typical contractors will ask for 50% of the total cost upfront and the rest at the competition of the job. The first 50% acts as a down payment which will allow them to cover material costs before the job has begun. It is also common on large jobs for contractors to ask for 1/3 of the payment upfront, 1/3 at the start of the job, and the final 1/3 upon the job’s completion. It’s important to look for a contractor that uses one of these payment terms because it allows the homeowner to make sure the work is completed to the terms of the contract and there aren’t any problems with the work before paying in full. It is a red flag if a company asks for 100% of the contract value upfront because they could take your money and never complete the job, leaving you with little recourse for repayment.
In the case of most insurance contracts, an agreed-upon portion of the funds will typically be released to the homeowner within 1-2 weeks after the adjuster approves the claim. The homeowner will then use those funds to pay the contractor and any money not yet released by the insurance company is typically paid once the work is complete and the contractor or homeowner sends the final invoice to the insurance company. After the proof is submitted, funds will typically be received within 30 days. An experienced contractor should be aware of this timeline and allow homeowners 30 days to pay their bills. Please note there are different types of insurance policies and you should review your coverages with your insurance agent to understand your specific policy.
Financing options for roof replacements are common and many sources exist for today’s homeowners. Whether you are financing the entire amount or just need to finance the amount of your deductible, you can get financing through your primary banking institution or from home improvement lenders. Como Premium Exteriors can offer competitive financing options to almost every customer through our financing partners. The application process is simple and credit decisions are returned within 15 minutes. If financing is something you need, don’t be afraid to ask your contractor for the options they provide.
Want to Know More About Roofing Contracts and Payment?
If you’re still feeling intimidated by roofing contracts and payment, siding, or gutter repairs, call CoMo Premium Exteriors to help answer your questions. We have years of experience providing homeowners with accurate estimates and helping them to understand the process of working with insurance.