Insurance Payout Related to Roofing?

I have an elderly neighbor who is needing a new roof. Her home insurance covers it. However the person she is wanting to put the roof on is NOT a real business, is not a contractor of any type, just an individual. He has no insurance on himself or his 'employees.'

Can this non-business actually put on a roof and be paid with this insurance payoff, or is that illegal or insurance fraud?

Also wouldn't the owner be liable if someone is hurt?

Thanks!
Additional Details
Thank you all! I'll warn her with these details. In her trying to save a buck this might cost her much more if someone gets hurt!!

She can hire anyone she wants to put the roof on. Heck, if she wanted to climb up there and do it herself, she can.

If she's elderly, I'd be concerned about her getting taken advantage of.

Check with the BBB - find out if the person she wants to hire is a member.

Tell her- if she goes with this guy-- do not pay him one dime until the job is done. Reputable roofers do not get paid until after the work is completed. They have established lines of credit they use to purchase the materials.

Does this person offer any type of warranty for his work? If the roof leaks after he puts the new shingles on - will he come back out and fix it? Most reputable roofers guarantee their work.

How did she find this guy? Does he have references?

You can call your agent or an adjuster with your company and find out the name of a reputable roofing company. Most adjusters know the names of a few good roofing companies in their area and are more than willing to give you those names and numbers if you ask.

Here's a quick lesson on roofs--

All a roof estimate is - is 7th grade math. You measure the length and width of the roof to get the area. You then add 10 to 15% for waste to this (multiply by 1.10 or 1.15). Then divide by 100. This breaks the area down into "squares".

A "square" is the unit of measure for roof area.

When an estimate is written on a roof - the insurance company pays a certain amount "per square". For example - They may pay $130.00 per square. For this 130 price - the adjuster expects the roofer to remove 1 layer of shingles, replace felt paper where needed and minor flashing.

Insurance companies do not write estimates to "roof over" or "re-roof". In most places, building code will allow you to have 2 layers of shingles on your roof. I have heard of dishonest roofers tell elderly widows that I paid only to "re-roof" and not enough to take that old layer off. The widow called me and I gave her the name and number of a roofer that would remove the old shingles and go back with new -- for the price I paid.

If the roof is steep - the insurance adjuster will have to add an additional amount - per square. This is because the roofing company will have to take additional safety precautions on a steep roof.

If there are more than 1 layer of shingles, the adjuster will add 10-20 per square to the per square price.

The adjuster will add for plumbing boots, chimney flashing and roof vents.

You will see all these things on the adjusters estimate.

Usually roofer estimates are not broken down. They just give a price but no info on how they got that price. But you can ask the roofer what his measurements were - how many squares and what he is charging per square.

If you have any questions - call the adjuster. Most good adjusters don't mind giving you a quick lesson on roofing.

Roofs are not complicated things. But it can help to have just enough information to be dangerous.

I work in the insurance industry. The homeowner can choose who they want to do the repairs and the insurance company does not have a say. With that being said, it is not advisable to have someone work on your home without proof of insurance and workers compensation insurance. Roofing insurance is expensive so I doubt if this person can afford it. The homeowner would be responsible if he got hurt on their location.

Likely he is operating illegally as an unlicensed contractor. Stay away.

licensed roofing contractors are some of the worst scum on this earth. the ones you guys always reffer to as the good ones are the ones in all the wrong places. refferals! ask around. most of the real talent lies in the hands of simple men. finding someone you trust who has PROVEN themself is far more important. the phone book, the bbb, state licensing bureaus, these are all businesses built to generate profit. look for objective facts and PROOF in everything you do.

Her insurance pays her. Who she hires to fix the roof, is entirely up to her.

If he screws the roof up, though, her insurance won't cover that.

Yes, an owner can be liable, if, for example, he falls off the roof and breaks his back. But it's not insurance fraud.

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