Storm chaser loses lawsuit over contingency contract

The facts of this case are strange; however, the bottom line is contingency contracts and storm chasing is a racket.

http://www.dallasnews.com/investigations/watchdog/20131005-watchdog-lon-smith-roofing-loses-suit-over-contracts-legality.ece

Conflict of interest? I don't see it.

In theory the adjuster is supposed to know what he's doing and shouldn't be influenced one way or the other by a roofer working with him to get the job. Making this against the law is just one more example of government intrusion where it's not needed.

There are legitimate reasons for the roofer to work with the adjuster. For 33 years I've been trying to do this as it helps the building owner to feel I have an investment of time and expertise in his job.

Secondly, 9 out of 10 adjusters know nothing about chopped glass emulsion roofing and unless I'm there to explain it, he will underpay or deny the claim nearly every time.

That said, I won't be breaking the law - I will simply be using great care to accomplish the same thing while not stepping over their goofy law.

Identifying the conflict of interest is a step in the right direction. I've made a lot of money over the years when my competitors abandon their regular customers to chase storms. :P

TWILL ain't the only with ears and 2 eyes......

Ed Senter: 7 days ago

It is hard to believe Lon Smith installed a roof without first getting insurance approval; nevertheless, these contingency contracts never were ethical. They turned the storm chasing business into nothing but a racket. Homeowners are all giddy over the prospect that they will get a new roof often at no charge. So when the insurance adjuster approves a claim, the homeowner believes the roofer did something special to get it approved. But, he did nothing. Now the homeowner feels obligated to use that roofer. Don't be deceived. Hail damage to roofs is mostly subjective. Neither a roofer nor an adjuster is objective. They don't get paid unless a claim is approved by the insurance company. I have seen way too many roofs torn off and hauled to the dump when there was plenty of life left in that roof. And the "new roof" installed was carelessly slapped on. Bottom line: Too many roofers and adjusters are in the storm chasing business and they don't know what they are doing. The insurance companies have nothing to lose because they just raise their rates.