Risky home repair contracts can be costly – WFTV

ORLANDO, Fla. – A warning from Action 9 to homeowners looking for new roofs ahead of the height of hurricane season.

A Winter Garden man claims he just lost thousands through a risky contract and never even got the new roof.

Ulises Alvarado faces a new hurricane season with a damaged roof. He says a local roofer promised months ago that this would not happen.

Alvarado said he was told, “’We’re going to take care of it. You don’t have to pay a cent. ”

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He claims a Nationwide Roofing salesman said his company would handle the insurance claim and Alvarado wouldn’t even have to pay the deductible.

“We’ll give you a sign to advertise our company and we’ll make it happen,” said Alvarado.

When the claim was first dismissed, the roofer sent a public expert to defend Alvarado’s case. He says the first time he met the expert was at his front door after the $ 18,000 claim was settled.

“‘I need you to underwrite it so I can get my fees out of the check’ and I’m like ‘woah, I don’t even know who you are, buddy’,” said Alvarado.

Then, Alvarado says, Nationwide told him he still had to pay $ 5,000 more than the settlement plus the deductible.

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He asked another roofer for an estimate and was told it would cost a lot less for a new roof.

The original contract was supposed to save Alvarado money, but would now cost him thousands more. Then he discovered the cost of canceling.

Nationwide Roofing demanded a cancellation charge of $ 4,600.

“So they want me to pay $ 4,600 so they can’t do anything,” Alvarado said.

Nationwide Roofing gets an A-plus from the Better Business Bureau for working to resolve complaints, but other consumers say it has taken control of their claims and major problems followed. The company has had 15 complaints about the BBB in three years. One consumer claims they signed a contract with Nationwide Roofing more than two years ago, they never got a new roof, and say the company is holding their insurance money. Another consumer disputes a cancellation fee, claiming they never received any documents with estimates or scope of the work.

Insurance expert Tom Cotton warns of offers to pay your deductible.

“That should be the first thing that arouses suspicion is that they are making a promise they cannot keep,” said Cotton.

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Florida has limited fee allocation contracts, but the agreement Alvarado signed gave the contractor control over the insurance.

“They now have control of the money, and controlling the money is the only way to control the contractor,” said Cotton.

Nationwide Roofing told Todd Ulrich that it never waives deductibles, that the contract terms and conditions and cancellation fees have been fully disclosed, and that Alvarado refused to allow Nationwide to complete his contract.

Alvarado disputes the cancellation costs and is looking for a new contractor.

“I want to have my roof repaired,” said Alvarado.

In short, if a roof contractor says you don’t have to pay a deductible, show them the door.

Reaction rural roof:

On October 6, 2020, Mr. Ulises Alvarado signed Nationwide Roofing’s contract, hiring Nationwide to inspect its roof – which Mr. Alvarado believed to have sustained storm damage and for which he filed an insurance claim – and then repair the roof if Mr. Alvarado’s insurance company agreed with Nationwide’s estimate. Nationwide inspected Mr. Alvarado and made a detailed estimate at no cost, and found sufficient evidence of storm damage to prevent Mr. Alvarado by referring to a public expert (it would be illegal for Nationwide to act as a public expert without a license).

In his contract, Mr. Alvarado agreed that Nationwide’s estimate would determine the contract price between him and Nationwide, and that if his insurance company agreed to the extent of the work in the estimate, Nationwide would perform the work at the price the insurance company agreed to. . Pay. The contract also provided that Mr. Alvarado had three days to cancel without penalty or recourse, after which, if he canceled, Nationwide would be entitled to 20% of the estimated amount.

Since Mr. Alvarado’s insurance company had already denied his roof damage claim, the insurance company would pay nothing on his claim unless a public expert or attorney was hired to represent Mr. Alvarado’s interests. Accordingly, on December 11, 2020, Mr. Alvarado signed a contract with Swift Claims Consulting Services, LLC, hiring them as his public expert to represent him with his insurance company. Like the Nationwide contract, the Swift contract gave Mr. Alvarado three days to cancel without penalty or recourse. Mr. Alvarado never canceled the Swift contract, which also instructed Swift to pay Nationwide, from any insurance techniques, any sums owed by Mr. Alvarado for taking services. In other words, if Swift were able to get payment from Mr. Alvarado’s insurance company for the storm damage, Nationwide would be required to re-roof Mr. Alvarado’s house, with Swift transferring the insurance proceeds to Nationwide on behalf of Mr. Alvarado. would pay.

Swift was ultimately successful in obtaining a recovery from Mr. Alvarado’s insurance company, which totaled $ 23,000. Swift was entitled to a 10% fee of $ 2,300 and a fee of $ 1,500 for the appraiser to be hired after the insurance company invoked the provision in Mr. Alvarado’s insurance policy requiring the assessment of any loss. 1 It is no exaggeration to say that without an appraiser, Mr Alvarado would not have received any compensation.

Until now, Mr. Alvarado has been involved in Swift and Nationwide Roofing’s efforts to get insurance and re-roof his home. However, upon learning of Swift’s $ 23,000 recovery, Mr. Alvarado immediately. Rather than cooperate, Mr. Confronting Alvarado for the first time, he refused to pay Swift or Nationwide and refused to perform his agreed work Nationwide.

After Mr. Alvarado communicated his intention to cancel the Nationwide contract, Nationwide had two options: either sue Mr. Alvarado for failing to fulfill his promise, or exercise his rights under the contract’s cancellation clause, with which Mr. Alvarado agreed. agreed to a 20% cancellation fee if he chooses to cancel the contract outside of the three-day notice period. Nationwide Roofing prides itself on honest, open and honest customer service. Nationwide’s contract terms are clear and simple. Nationwide never offers to waive deductibles.

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