Out-of-state contractors pose as local to lure customers with storm damage

By DON DARE
6 On Your Side Reporter

KNOXVILLE (WATE) - Stormchasers is a name for out-of-state contractors who follow natural disasters. They go from community to community offering to fix roofs at cut-rate prices.

They're in East Tennessee underbidding local roofing contractors who will be here long after the damage is cleaned up.

Since the series of storms rolled through on April 27 dropping some hail stones as large as baseballs onto roofs, the highways have been humming with roofing crews from places like Illinois, Colorado and Ohio.

They've set up shop in our area at least temporarily and started canvassing neighborhoods.

Mary Grant owns three rental homes. She says an out-of-state company convinced her they can fix the hail-damaged roofs on her rentals quickly and cheaply.

"They went door-to-door to the rental property," Mary said.

She now regrets her decision. When I asked Mary if this company is local, she said, "No, I've tried to find them. I can't find anything about them."

Mary says the company claimed it's affiliated with a local roofing business. "I know they're a reputable company in Knoxville. I thought this guy knows what he's talking about and it's safe."

Then Mary called the legitimate local roofing company. "They said they didn't have us under a contract. They weren't told anything about it."

American Shingle was a Georgia-based roofing company that swindled dozens of East Tennessee residents last year.

Richard Anderson signed up with American Shingle after his insurance company confirmed hail damage to the roof, but the job was never finished.

In August, investigators in Memphis served search warrants at the business and seized documents. By September, the company's main office is Atlanta was closed. American Shingle has since declared bankruptcy.

Now a new crop of stormchasers have opened businesses here. "These are companies that follow natural disasters throughout the country," said Better Business Bureau President Jerry Tipton.

He showed 6 On Your Side a flyer that's been handed out to residents in West Knoxville. It's from A Top Roofing.

"It says they have over 60 years experience," Tipton said. "They have an A+ rating with the BBB. They're licensed, bonded and insured and locally owned. None of it is true. They're out of Illinois."

6 On Your Side went to the storefront, but no one answered the door or the phone.

"I would deal with a reputable local company that has a good record and can furnish proof on insurance and bonding," Tipton said.

6 On Your Side has acquired a number of signs of roofing companies that have recently moved into the Knoxville area.

These crews could be gone tomorrow. "Chasing the next storm," Tipton said.

"If you sign a contract with them, let them negotiate with your insurance company then who says what kind of quality work you'll get. If any," Tipton advised.

It's okay to say you want to sleep on a proposal before making a decision about a new roof. And don't forget, just because an estimate has the lowest cost doesn't make it the best.

Legitimate contractors are not going door-to-door to drum up business in neighborhoods hit by storms. They wait for you to contact them.

If you have a consumer issue call our 6 On Your Side Hotline at (865) 633-5974.