Understanding Roofing Contingency Agreements

1. Why Keeping Your Options Open Matters

Once you sign, you are generally limited to the products, services, and trades that contractor offers. Before you commit, or if you signed quickly and are having second thoughts, make sure you can answer these questions:

• What products are going on my roof? Ask for the exact shingle brand, product line, and impact rating in writing. Not all shingles perform the same, and the difference matters for hail resistance, warranty length, and whether you qualify for an insurance premium discount.
• How will ventilation be handled? Many roofs are replaced with the same vents that were there before, without checking whether the attic is actually ventilated correctly. Ask whether the contractor calculates intake and exhaust for your attic. Poor ventilation can shorten the life of your roof, cause ice dams, and affect your manufacturer warranty.
• Which warranty am I getting? Material, workmanship, and enhanced system warranties are different. The strongest warranties usually require a certified installer and a complete system, ventilation included.
• Who is handling the rest of my damage? Storms rarely hit just the roof. If your gutters, siding, windows, screens, fencing, or decks were also damaged, find out whether the contractor handles those trades or whether you'll be coordinating multiple companies.

If you're not satisfied with the answers, you have the right to understand your options before moving forward.

2. Your Three-Day Right to Cancel

Under the Federal Trade Commission's Cooling-Off Rule, if you signed a contract for $25 or more at your home, you generally have until midnight of the third business day after signing to cancel for any reason, with no penalty.

• Cancellation must be in writing.
• The contractor is required to give you a cancellation form and explain this right when you sign. If you never received one, talk to an attorney, since your cancellation window may not have started yet.
• Limited exceptions apply, such as a genuine emergency repair where you waived this right in writing.

3. What to Look for in Your Agreement

• Cancellation terms: Check whether there is a cancellation fee and how it's calculated. Some agreements set a fixed fee or a percentage of the insurance payout.
• Scope, materials, and price: Does the agreement list specific work, materials, and a price, or does it say the contractor will do the work for whatever insurance pays? How enforceable a vague agreement is can be a legal question, so don't assume either way.
• Claim language: In Utah, only a licensed public adjuster or an attorney can negotiate or settle a claim on your behalf. If your agreement says the contractor will negotiate your claim for you, raise it with an attorney or the Utah Insurance Department.
• Assignment of Benefits (AOB): An AOB transfers some of your insurance policy rights to the contractor. Make sure you understand exactly what you signed.

4. Common Names for These Agreements

These documents aren't always improper, but they're often contracts, not simple permission slips. Read carefully if you signed anything titled:

• Inspection Authorization / Damage Assessment
• Insurance Representation Agreement
• Pre-Construction Agreement / Reservation Form
• Work Order / Proposal "subject to insurance approval"
• Assignment of Benefits (AOB)

5. What You May Still Owe

Even if you cancel, you may owe for work already performed or costs already incurred, such as:

• Emergency Repairs: Tarping or other temporary work to stop an active leak.
• Delivered Materials: Materials already dropped off at your home.
• Agreement Fees: Any fees your agreement specifies, if you cancel outside the three-day window.

6. Recommended Action Steps

1. Find Your Agreement: Locate your copy and read it fully, including the fine print.
2. Check the 3-Day Window: If you're still within three business days of signing, send written cancellation right away using Version A below.
3. Past Three Days: Review the agreement's termination terms. If you're unsure what you'd owe, talk to an attorney before sending notice, then use Version B below.
4. Send Written Notice: Send by email and by certified mail, and keep copies of everything.
5. Get Help If You Need It: Utah Insurance Department: insurance.utah.gov. Utah Division of Consumer Protection: consumerprotection.utah.gov. Verify any contractor's license: dopl.utah.gov.