Is Your Roofing Salesman Crossing the Line? Why the UPPA Trap is Bad for Your Claim
- Tony Ruggiano
- Apr 28
- 5 min read
Let’s be real: when a big storm hits and the hail starts pounding, the first person a homeowner calls isn't usually their insurance agent, it’s their roofer. We get it. Roofing companies are the boots on the ground. You’re the ones climbing the ladders, documenting the dents, and trying to make sure the family under that roof stays dry.
But there is a massive legal elephant in the room that’s catching a lot of good people off guard. It’s called UPPA, or the Unauthorized Practice of Public Adjusting.
Lately, we’ve seen a surge in roofing salesmen unintentionally crossing the line from "helpful contractor" to "unlicensed public adjuster." While the intent is usually to help the homeowner get a fair shake, the reality is that "crossing the line" can blow up the entire insurance claim, land the contractor in legal hot water, and leave the homeowner with a half-finished project and zero coverage.
At NPA Adjusting, we believe in a collaborative approach. We want roofing companies to do what they do best, build great roofs, while we handle the heavy lifting with the insurance carriers. Let’s dive into why the UPPA trap is a lose-lose for everyone and how we can protect your investment together.
What Exactly is UPPA?
Unauthorized Practice of Public Adjusting (UPPA) happens when someone who isn't a licensed Public Adjuster (or an attorney) performs duties that the law reserves for licensed professionals. In the world of insurance claims, this usually means negotiating the settlement or interpreting the policy language for the homeowner.
In states like Texas, the law is incredibly clear (and strict): you cannot act as the contractor and the public adjuster on the same project. It’s a conflict of interest. Think about it, the adjuster is there to determine the value of the loss, while the contractor is there to perform the work. When one person tries to do both, insurance carriers start smelling blood in the water.
The "Negotiation" Trap
Many roofing salesmen think they’re just "advocating" for their client. They show up to the adjuster meeting, point out the damage (which is fine), and then start arguing about depreciation, overhead and profit, or policy exclusions (which is definitely NOT fine).
The second a salesman says, "The policy says you owe for this," or "I’ll settle this claim for $20,000," they have stepped into the UPPA trap.
Why the UPPA Trap is Dangerous for Roofing Companies
We talk to roofing companies every day, and we know how hard you work. The last thing you want is for your hard-earned contract to be tossed out because of a technicality. But that is exactly what’s happening.
1. Your Contract Could Become Void
In many jurisdictions, if a roofing contract includes language that says the contractor will "negotiate" the claim or "handle everything with the insurance company," the entire contract can be declared void and unenforceable. Imagine finishing a $50,000 commercial roof, only for the homeowner (or their lawyer) to realize the contract was illegal under UPPA laws. You could lose the entire project value and have no legal way to collect.
2. Criminal and Administrative Penalties
This isn't just a "slap on the wrist" situation. In Texas, for example, violating UPPA is a Class B misdemeanor. It can come with hefty fines and can even jeopardize your ability to hold other professional licenses.
3. You Lose Your Leverage
Insurance carriers know the law better than anyone. If they catch a roofing salesman acting as an unlicensed public adjuster, they will often shut down communication. They’ll stop taking your calls, refuse to look at your supplements, and use your UPPA violation as a reason to lowball the claim. By trying to help, you might actually be making it impossible for the homeowner to get a fair payout.
Why the UPPA Trap is a Nightmare for Homeowners
For the homeowner, the UPPA trap is a fast track to a denied claim or a legal headache. When a residential claim is handled by someone without the proper licensing, the insurance company has a massive "out."
Denied Settlements: Carriers can argue that the claim was filed or negotiated improperly, leading to delays that last months or even years.
Financial Risk: If the roofer’s contract is voided due to UPPA, the homeowner might find themselves in the middle of a legal battle between their contractor and their insurance company, often with a lien placed on their home.
Lack of Protection: Public Adjusters are bonded and licensed. We have a fiduciary duty to the policyholder. A roofing salesman, no matter how well-intentioned, doesn't have the same legal obligations or protections for the homeowner.
How to Stay on the Right Side of the Line
So, how do we work together to protect the claim? It’s all about staying in our respective lanes.
What the Roofing Salesman SHOULD Do:
Document the Damage: Take high-quality photos and videos. Be the expert on the physical state of the roof.
Provide a Fact-Based Estimate: Use market rates to show what it costs to actually fix the damage.
Discuss the Scope: Tell the adjuster what is damaged (e.g., "The flashing here is bent").
Recommend a Professional: If the carrier is being difficult or the claim is complex, refer the homeowner to a licensed Public Adjuster.
What the Roofing Salesman SHOULD NOT Do:
Interpret the Policy: Don't tell the homeowner what is or isn't "covered."
Negotiate the Settlement: Avoid using words like "negotiate," "settle," or "adjust."
Argue Legal Points: Don't get into the weeds about state statutes or insurance case law.
The NPA Advantage: Protecting Your Hard Work
At NPA Adjusting, we don't build roofs. We protect the funds that allow you to build them. We see ourselves as the advocate for the policyholder and a vital partner for the contractor.
When a roofing company brings us in, the dynamic changes instantly. The insurance carrier can no longer play the UPPA card. They have to deal with a licensed professional who knows their tactics inside and out. We handle the paperwork, the carrier meetings, and the intense negotiations, ensuring the homeowner gets every penny they’re entitled to under their policy.
This frees up the roofing salesman to do what they do best: sell more jobs and manage more crews. You don't have to spend four hours on hold with an insurance company only to be told "no." Let us handle the "no" so you can get to the "go."
For more on how we support contractors, check out our For Contractors page.
Real-World Consequences: A Cautionary Tale
We’ve seen cases where roofing companies have had to pay back insurance proceeds because a court ruled their "contingency" contracts were actually unlicensed public adjusting contracts. In the commercial world, where claims can reach into the millions, the risk is even higher. One wrong sentence in your contract or one overzealous email to an adjuster can sink a multi-million dollar project.
Why take that risk? By partnering with a Public Adjuster, you’re adding a layer of professional protection to the project. You're showing the homeowner that you care enough about their claim to bring in a specialist. It’s an investment protection strategy that pays off for everyone involved.
Let’s Chat!
If you’re a roofing professional tired of fighting with adjusters who don't want to listen, or a homeowner who feels like their claim is stuck in neutral, we’re here to help. At NPA Adjusting, we pride ourselves on being the shield between the policyholder and the insurance company.
Whether it's a residential storm claim or a complex commercial loss, our team is ready to step in and ensure the job is done right. Don't let your claim fall into the UPPA trap.
Ready to get your claim back on track?Schedule an initial consultation today and let’s talk about how we can protect your property and your peace of mind.
NPA Adjusting: We Can Help.
Helpful Resources for Your Claim:
Comments