TDI Shares Consumer Concerns About Contractors, Roofers with Lawmakers

January 15, 2019

While not making any specific recommendations to lawmakers regarding the licensing of building and roofing contractors, the Texas Department of Insurance noted in its 2018 Biennial Report to the Legislature that the department has “heard concerns about roofing and contractor scams from consumers, agents, the media, and other stakeholders.”

The department acknowledged that the state does not currently license roofers and contractors but recognized that the legislature has in the past considered various registration and/or licensing proposals.

The agency said most of the complaints it has received about contractors and roofers, especially those who arrive from out-of-state following violent weather, concern:

  • Offers to waive deductibles, which TDI said “could cause the policyholder to commit insurance fraud;”
  • Contractors/roofers that require payments up front, after which the contractor/roofer disappears;
  • Contractors/roofers that take on an overload of work, causing lengthy delays in work completion; and
  • Contractors/roofers that don’t honor warranties or refuse to “correct shoddy repairs.”

Proponents of roofing contractor licensing, including insurance industry representatives, have tried twice — and failed — in previous legislative sessions to get a licensing bill passed by Texas lawmakers, according to Mark Hanna, a spokesman for the Insurance Council of Texas. He said ICT expects the issue to be considered by lawmakers again this year.

The state’s legislature meets every two years. The 2019 session began on Jan. 8.

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