Red flags in a roofing quote: 10 things to check before you sign

Why roofing quotes need extra care

Roof work is expensive and hard to inspect from the ground, and it is often sold in a hurry after a storm. That makes roofing a common target for scams. The FTC warns that after weather emergencies, scammers may claim they don't need a license and promise immediate repairs.

Here are ten red flags to look for on the page, with a synthetic sample line for each. The companies are fictional.

1. No license number, or the wrong name

Sample (synthetic): "Summit Peak Roofing. Lic. pending."

Where roofers must be licensed, the number should be on the quote. Illinois, for example, requires a state-licensed roofing contractor to put the license number and name on all contracts and bids. In Queensland, a licence is needed for building work valued at $3,300 or more. In New South Wales, a licence is needed for residential building work over $5,000 including GST. Look the number up on the official register and check the name matches. Our guide on what a contractor quote should include covers the other basics.

2. Vague materials

Sample (synthetic): "New roof, architectural shingles, $11,500."

Which brand and product line? What underlayment? New flashing or reused? Drip edge, vents and ridge caps? Without names and quantities, you can't compare quotes or check what was installed.

3. No tear-off or decking terms

Sample (synthetic): "Install over existing roof as needed."

Ask whether the old roof will be removed, how many layers, and what happens if the roof deck (the boards under the shingles) is rotten. A good quote gives a price per sheet or per square foot for replacing damaged decking. Without it, that cost is open-ended.

4. Large up-front payment

Sample (synthetic): "60% due on signing to order materials."

The FTC says not to pay the full amount up front and never to make the final payment until the work is done. Some places cap down payments. California's CSLB says the down payment cannot be more than $1,000 or 10% of the contract price, whichever is less. See our guide on how much deposit a contractor should ask for.

5. Cash only, or payment to a person

Sample (synthetic): "Cash discount 10%. Make checks payable to Dale."

The FTC warns that scammers may only accept cash, and advises paying by credit card or check, never by wire transfer, gift card, payment app, cryptocurrency or cash. Illinois' roofing guidance says to make checks payable to the company, not an individual.

6. An offer to cover your insurance deductible

Sample (synthetic): "We'll take care of your deductible."

Your deductible is your share of an insurance claim. Illinois law says a contractor offering home repair must not advertise or promise to pay or rebate any part of an insurance deductible. Other states may have similar rules. Check with your state insurance department. A contractor who absorbs the deductible has to make that money up somewhere.

7. Handling your insurance claim for you

Sample (synthetic): "Sign here and we'll deal with your insurer."

The FTC says never to sign your insurance check over to a contractor. In Illinois, after a declared catastrophe, a contractor cannot represent you on an insurance claim or file a claim on your behalf. Read anything you're asked to sign. It may be an assignment of your claim rights.

8. No completion date or cancellation terms

Sample (synthetic): "Work to begin when crew available."

Illinois' roofing guidance says the contract should state a date by which the work will be done, or the contract can be ended and the deposit refunded. Look for a start window, a completion date and a statement of your right to cancel. In the US, the FTC's Cooling-Off Rule can give you three business days to cancel some sales made at your home. In Ontario, contracts signed at home generally carry a 10-day cooling-off period. Illinois also lets you cancel within five business days if your insurer tells you the claim isn't covered, in a catastrophe situation.

9. No permits, cleanup or warranty terms

Sample (synthetic): "Permits by homeowner. Warranty: lifetime."

The FTC lists asking you to get building permits as a scam warning sign. Check who pulls the permit, who removes debris and nails, and what the warranty covers. A "lifetime" warranty with no written terms tells you little. Ask for the manufacturer's warranty and the contractor's workmanship warranty, in writing.

10. Pressure to sign today

Sample (synthetic): "Storm price valid today only."

The FTC says scammers pressure you for an immediate decision. A legitimate roofer will give you time to get other quotes and check its license and insurance.

Other checks before you sign

• Insurance. Illinois tells homeowners to ask for proof of current insurance and to check workers' compensation coverage. Confirm certificates with the insurer.

• Subcontractors. If the work is subcontracted, check that the subcontractor is licensed too.

• Lien waivers. Illinois suggests getting lien waivers from the roofing supplier and any licensed subcontractor, so unpaid suppliers can't claim against your home.

• Contract basics. In Ontario, renovation and roofing contracts worth more than $50 must be in writing, and must include a work schedule and a payment schedule with the deposit amount.

• Blank spaces. The FTC says to make sure every blank space is filled in before you sign.

After a storm

Demand surges after storms, and so do door-to-door offers. Take photos of the damage, contact your insurer before signing with anyone, and get more than one written quote. If a contractor won't give you copies of its license, insurance or a written contract, the FTC calls that a red flag.

Get a second pair of eyes on your roofing quote

EasyToDecode is launching soon. Upload your roofing quotes, and it will quote the lines that matter, flag missing materials, decking and permit terms, point out risky payment or deductible wording, and draft questions to send each roofer. See how it works or join the waitlist.