Storm roofers need contracts that do not depend on insurers
Insurance delays and disputes can leave a roofer waiting after the work is done. Owners should make clear that the customer owes the bill, even when insurance pays less or pays late.
Storm work can bring a roofing company a full schedule. It can also create a cash problem. When an insurance payment is delayed, cut, or denied, the contractor may wait for money after finishing the job.
That risk is now drawing more attention. According to Roofing Contractor, Oklahoma Attorney General Gentner Drummond has sued State Farm and Allstate over their handling of wind and hail claims. The claims against the insurers have not been proven.
The cases point to a basic contract question. Who must pay the roofer if the carrier does not cover the full bill? A contract built only around insurance proceeds may leave that answer unclear.
A retail model can lower payment risk
Construction attorney Trent Cotney told Roofing Contractor that some restoration companies are moving toward a hybrid model. Insurance may still cover the loss. But the homeowner, building owner, or other customer remains responsible for paying for the work.
Cotney said contractors are moving toward “more of a retail strategy,” according to Roofing Contractor. That difference matters when the roofer's estimate is above the carrier's amount. It also matters when an insurer takes longer than expected to issue payment.
A retail approach does not make insurance go away. It makes the customer agreement the main source of the contractor's right to payment. The contract should state who owes the money and what happens if insurance falls short.
The issue is not limited to one private dispute. Oklahoma's insurance department spent two years examining how insurers handle roof claims, according to Roofing Contractor. Drummond demanded the findings after a promised report had not been published.
Government scrutiny is spreading
Illinois and California officials have also taken action involving State Farm. The Illinois case concerns access to information for a review of the insurer's homeowners business. Illinois did not accuse the company of routinely underpaying roof claims.
Los Angeles County sued State Farm over claims tied to the January 2025 Eaton and Palisades wildfires. The county alleges delays, underpayments, denials, communication problems, and other claims issues. State Farm said it strongly disagrees with the county's account and had paid more than $6.2 billion in 2025 wildfire claims as of Aug. 31.
A separate Oklahoma case offers another warning for storm contractors. According to Homepros, homeowners Neil and Lacy West sued State Farm in 2023 after hail caused an estimated $50,000 in damage. The outlet reported that the insurer offered 10 percent of that estimated cost.
Homepros reported that court documents described a State Farm program started in 2020 to reduce roofing claim costs. An internal message said payouts fell by $1.4 billion in the program's first year. State Farm has denied wrongdoing and said it paid more than $1 billion to Oklahoma customers for wind and hail damage.
Those cases do not decide what any one claim is worth. They do show why a roofer should not treat an adjuster's first answer as a sure source of revenue. The contractor still has payroll, material bills, fuel costs, and other expenses while a claim is disputed.
What an owner can do this week
An owner does not need to leave insurance work to lower the risk. The first step is to review how each agreement handles a shortfall or delay. A local construction lawyer can check that the wording follows state law.
- Pull the current storm-work contract. Mark every line that ties payment only to insurance proceeds.
- Ask a construction lawyer to make clear who owes the bill, when payment is due, and what happens if a carrier pays less or pays late.
- Set a written process for estimates, change orders, customer approvals, invoices, and records of all insurer communications.
- Review open insurance jobs each week. Flag completed work with no payment date, then contact the customer before the balance gets older.