FAQ

As one of the more active roofing contractors in Colorado Springs, we do a considerable amount of business with real estate agents because we understand their business exclusively well. We have adopted many procedures to accommodate our Realtor Referral Partners and their clients. One way we try to help when a property is under contract and pending closing and time is an issue, is to defer payment for hail damage repair costs and other work until the closing and agree to be paid from the proceeds of the sale. Many times, a home inspection will reveal hail or wind damage to a roof with only a few days between the discovery of the damage and the scheduled closing date. If it is understood and agreed contractually that the roof will be replaced or repaired, it is important to move things forward quickly.

If our free roof inspection determines that it is likely the damage will be covered by insurance, we ask the owner to quickly initiate a claim and get an insurance adjuster scheduled to inspect the roof as well as for any other event related damage. Insurance companies will often expedite arranging for an adjuster when they know that a home sale depends on the roof being replaced. In the meantime, we will prepare the necessary paperwork, get the color selection taken care of, offer the buyer the opportunity to upgrade to an Impact Resistant shingle, have the paperwork approved and the schedule the work. Until the adjuster has inspected the roof we don’t know for certain that the insurance company will cover the cost and we don’t dare start the roof.

As soon as the adjuster makes his or her inspection we are ready to have the material delivered and the work performed. Because the price may be different for an insurance job than for a cash job we are careful to explain the differences to the homeowner so there is no confusion when the invoice is submitted to the title company for payment. As was mentioned above, when we are doing a job for cash we will do what we can to keep the cost to the homeowner down as much as possible. If it is an insurance job, we are entitled to get what the insurance company will agree to pay. From time to time what the insurance company will pay in total is still somewhat up in the air at the time of closing. We will submit an invoice in the amount we believe the insurance company should pay us and that amount must be paid at closing from the proceeds of the sale or from other funds available to the seller. If our negotiations with the insurance company result in them agreeing to pay us less, we will revise the invoice and refund the amount that was overpaid by the seller. Occasionally the amount an insurance company agrees to pay the roofing contractor exceeds what was paid at the time of closing. Remember, the agreement is to do the work for the amount the insurance company agrees to pay plus the owner’s deductible and any supplements plus Overhead and Profit if applicable. If the insurance company doesn’t agree to pay for one of the supplements, then the owner is not obligated to pay for it. But if the insurance company agrees to pay more than was originally invoice at closing the homeowner that contracted for the work will receive that extra amount and is obligated to pay it to the roofing contractor. The invoice in the amount submitted must be paid at the closing.

The title company handling the closing, having been advised of the outstanding invoice for the roof work has an obligation to collect the money and satisfy the pending lien before they can issue the title policy stating that the property is free and clear of any liens or encumbrances other than those specifically listed on the title policy such as the covenants, conditions and restrictions and other items. The buyer is not purchasing the property subject to the owed money for the roof work. We are pleased to be able to offer deferred payments and it has proven to be a real benefit to those who must put on a new roof to satisfy the demands of the buyer but do not have the necessary funds available to pay for the roof out of pocket.

Some roofs just wear out and need to be replaced and homeowner’s insurance doesn’t cover aging or normal wear and tear. Roofing contractors will often find that there is inadequate or no insurance to cover hail or wind damage to your roof. When this is the case we will inspect and measure the roof making note of what needs to be replaced and what does not need to be replaced to help keep the costs down.

Roofing repair and replacement costs are calculated based on the number of squares of material it takes to cover the roof. One square of roofing is 100 square feet. The average home has between 16 and 25 squares of roof. A ranch style home will have more squares of roofing than a comparably sized two-story because the second story and most of the first story share a roof. We try to use as sharp a pencil as possible when estimating cash jobs because we realize that the homeowner is paying for the roof out his or her hard-earned money.

If you would like a free roof inspection and a no obligation estimate of the costs to repair or replace your roof we are happy to do that for you. We’re not just affordable, we are noted for our high level of personal service and timely communications. To request a quote, simply use the convenient online system at  www.jackcatonroofing.com or call us at 719-338-1441.

It isn’t unusual for homeowners to need a monthly payment program to be able to afford to replace their roof. If you find yourself in this situation you might consider talking to your bank about a Home Equity Line of Credit to pay for the roof. As an alternative, we have arrangements with a company specializing in this type of monthly payment program. To find out more contact us and we will help you with the details.

We regularly help people who are selling their homes who find themselves in a position where a roof needs to be repaired or replaced without the help of insurance coverage. If the property is under contract with a confirmed closing date, we are often able to defer payment for the roof until the house closes and arrange for the damage repair costs to be paid from the proceeds of the sale by the title company closing the transaction.

Also referred to as Roofing Contractor’s Overhead and Profit and O & P, overhead and profit is something to which contractors are generally entitled but the insurance companies don’t always approve. Courts have held that an insurance claim estimate should include overhead and profit for the contractor because the claim estimate includes the cost of materials and the cost of labor but does not always include an allowance for overhead and a margin of profit. Industry standards are that overhead is equal to 10% of the amount of each individual job and profit is equal to an additional 10% of the individual job. A claim may include the replacement of a roof, the replacement of several windows, painting a portion of the house and replacement of the downspouts and gutters. A roofing contractor who does the roof is entitled to and may petition the insurance company for overhead and profit for that portion of the work.

Don’t be surprised if the claim estimate is increased to include overhead and profit as well supplements, such as the fees for the building permit and sales and use taxes if they were not included in the initial claim estimate. It is called an estimate for a reason. We have included an interesting article about overhead and profit in our glossary.

From time to time we have had customers who mistakenly believe that the payment for Overhead and Profit included in their insurance claim belonged to them. Overhead and Profit is not a bonus or windfall to which the property owner is entitled. Our agreement with the property owner states clearly that if there is overhead and profit in the claim it is money to be paid to the roofing contractor.

As we discussed earlier we do not accept credit cards unless one wants to pay via Square, a third party provider like PayPal. Far too regularly we receive payments that have been sent to us via overnight mail, UPS or FedEx. While we appreciate our customers wanting to get their payment to us, it’s not necessary to expedite payment. Just put your check in the mail and send it off to us. Don’t spend your money trying to get your payment to us a day or two earlier than regular first-class mail will do. If you would like to send us your payment via an Electronic Funds Transfer directly from your bank to ours we will be happy to provide you with our wiring instructions. There is a small charge on both ends of the transfer. We are happy to pay our portion while the property owner picks up any charges on their end. This does expedite the payment and once again it isn’t necessary except when the homeowner is out of the country and doesn’t necessarily trust the postal service to be as proficient as the USPS.

Property owners are not expected to pay the roofing contractor until they have received payment from the insurance company. We generally wait until we know the invoice has been approved and payment authorized before sending out invoice.

Approval by regional building does not have to take place for payment to be due. We have experienced periods when regional building was six months or more behind in their inspections because of thousands of homes having been damaged by storms. We provide our customers with warranties that cover material and labor and on the odd occasion that a roof doesn’t pass inspection we will promptly do whatever is necessary to insure that the roof passes on re-inspection.

There are times you may need a payment program to help you get the roof you need. Even if you have insurance coverage that essentially pays the full replacement cost of your new roof you may have a high deductible and haven’t set aside the money to cover to cover it. There are other situations that may call for a payment solution such as insufficient coverage, just not having insurance coverage for your roof or building department code upgrades that are required but aren’t covered by your policy. Perhaps your roof has just plain worn out, something insurance doesn’t cover. There are various payment programs to help you get the roof you need when you need it.

While we don’t offer financing through The Jack Caton Team or 1st Priority Roofing, we’ve done the research for you and found a few financing sources that might help you get the roof replacement you need. We have tried to find companies that offer affordable payment and term options. Give us a call and we will be more than happy to help you arrange a payment program that is comfortable and meets your needs.

We generally require a deposit. Many roofers will ask for the amount the insurance company has sent as the first payment to you as the deposit. This is normally the Replacement Cost Value less the Depreciation less the Deductible. This could be 50% or more of what the total cost will eventually be. Be cautious of roofing contractors who seems to need the money just to pay for materials. We’ve all heard stories about roofing contractors who have taken money for a job and then never even start the work or order the material. Check the roofing contractor’s references, what is the contractor’s rating with the BBB. If you are wary but still want to do business with the contractor, agree to pay the deposit upon delivery of the material. Colorado State law requires that a contractor hold any deposits in a trust account until the material is delivered. Unfortunately, I believe that finding a roofing contractor who adheres to this rule is the exception as compared to the rule.

If it is an insurance job, we will prepare an invoice for the insurance company upon completion of the work and submit it to them via email along with any necessary documentation they might require. We do several thousand roofs a year and are familiar with all the insurance companies and their requirements. Our invoice is prepared in the manner they prefer following the format of the claim estimate. Any unusual supplements included on the invoice will have been previously discussed with them and approved by them. As a general practice, insurance companies don’t send roofing contractors money, they send the homeowner the money. Their policy and agreement are with the homeowner not with the contractor. After we know that the insurance company has approved our invoice and processed it we prepare our invoice and submit it to the homeowner. Sometimes a homeowner will receive our invoice before they get the payment from the insurance company. We don’t expect to be paid by the homeowner until they have been paid by their insurance company.

Often homeowners are startled when they receive our invoice that might reflect Overhead and Profit or other supplements to which the insurance company has agreed but for which the homeowner not yet received the payment. It is our intent that with our new integrated computer system that we will be able to let you know what the revised claim estimate is and to what the insurance company has agreed far in advance of you receiving our invoice. Our expectation is that our invoice will be paid as soon as the homeowner has received the final payment from the insurance company for our work.

As a rule, we do not accept credit cards. As you know there is a substantial fee to the merchant, in this case the roofing company for the convenience of a credit or debit card. This fee is around 3%. 3% isn’t much on a ten-dollar purchase but on a seven thousand or ten-thousand-dollar payment it is a substantial amount. We would rather keep our prices down than charge everyone more so that a few can accumulate rewards on their credit card. If it is absolutely necessary for you to pay with a credit card, we can make arrangements through a third-party service for which there is a 3% fee to be paid by the credit card holder.