Unforeseen Property Liens

The Southwest is notorious for big storms with lots of wind, rain and hail. Such storms can cause major damage to all types of roofing – tile, shake, shingle, single-ply, built-up, foam etc. When a storm hits and causes damage, whether you are a home or business owner, your next step is to file an insurance claim. Once the claim is approved, you hire a roofing contractor to replace the damaged roof.

Problem solved, right?

Sadly, that is not always the case. Unless you have selected a local, reputable and financially sound roofing contractor, you may find an unpleasant surprise in the mail one day. A notice arrives that states that a lien has been placed on your property for the cost of materials the roofer used to replace the roof.

Such liens, often referred to as \"supplier's liens\" or \"mechanic's liens\", are allowable by law, and provide a security interest in the title to your property for the benefit of those who have supplied material or labor that improve the property. Putting yourself in a material supplier's or contractor's shoes, you can definitely appreciate the protection that a lien provides should you have trouble collecting payment for work performed. However, when you attempt to call the company you hired to replace your roof, you may learn that they've left town without paying the supplier for materials used on your roof.

Interestingly, you can't find anything mentioned about this in your contract, and naturally assumed it was taken care of and included in the price on the proposal. Oftentimes, you'll even find such details about materials and cost as part of the price. At any rate, the roofer may very well have just pocketed the extra money without paying a supplier. In order to avoid a clouded property title, you're left with no other option than to pay the supplier out of your own pocket, with the roofing company unduly cashing in on an extra portion of insurance money that should have been paid to a supplier.

Big storms bring out a lot of fly-by-night roofers, and the scenario above is quite common in both residential and commercial roofing. However, you can protect yourself by dealing with a reputable, local roofing contractor who has been in business for years. The contractor you choose should be licensed, bonded and insured. Selecting a local contractor will also allow you to check out the company’s reputation with friends, neighbors and prior customers. If there is a problem down the road, you will be able to find the roofing contractor to sort it out.