✎ Fill In Your Information
[Contractor Name]
[Contractor Address]
Property: [Your Property Address]
Storm Date: [Storm Date]
Contract Amount: [Contract Amount]
2. California Penal Code Section 484/487 - Theft by False Pretenses. Obtaining money through fraudulent representations is theft, punishable as a felony for amounts over $950.
3. California Business & Professions Code Section 7160 - Willful departure from plans or specifications, or fraud upon the person, entitles the homeowner to TREBLE (3x) DAMAGES.
4. California Business & Professions Code Section 7108 - Diversion of funds received for execution of a construction contract, failure to complete work, or deviation from contract are grounds for discipline.
5. California Insurance Code Section 1871.4 - Making fraudulent statements in connection with insurance claims is a separate criminal offense.
6. California Civil Code Section 3294 - Fraud, oppression, or malice entitles the victim to PUNITIVE DAMAGES in addition to compensatory damages.
This amount represents the difference between what you received and the actual value of services provided, plus damages for your fraudulent conduct.
- Insurance Company Notification: Notifying [Insurance Company] of the fraud for their investigation and recovery action
- CSLB Complaint: Filing a formal complaint with the Contractors State License Board
- Bond Claim: Filing a claim against your contractor's bond (if licensed)
- Civil Lawsuit: Filing suit seeking TREBLE DAMAGES under B&P 7160, plus PUNITIVE DAMAGES under Civil Code 3294
- FBI Notification: If this is part of an organized scheme, reporting to the FBI for wire/mail fraud
_________________________________
[Your Name]
[Your Address]
- Copy of contract
- Payment records/canceled checks
- Insurance claim documents
- Insurance adjuster report
- Independent inspection report
- Photographs of alleged "damage" and actual condition
- Weather records for claimed storm date
- CSLB license lookup (if applicable)
- California Department of Insurance, Fraud Division
- [County] District Attorney's Office
- [Insurance Company] Special Investigations Unit
- Contractors State License Board
📋 Instructions
Common Storm Chaser Fraud Tactics
🚨 Door-to-Door Solicitation
Contractors appear immediately after storms, going door-to-door claiming to see damage that may not exist.
🚨 Free Inspection Scam
"Free roof inspection" leads to claims of major damage, pressuring you to file insurance claims.
🚨 Inflated Claims
Contractor exaggerates damage to get larger insurance payout, pockets difference between claim and actual work.
🚨 Assignment of Benefits
You sign over insurance rights, contractor controls claim and may not complete work as promised.
🚨 Manufactured Damage
Some contractors actually damage roofs during "inspection" to create claims.
🚨 Disappearing Act
Contractor collects insurance money, does minimal or no work, then disappears or goes bankrupt.
Before Sending This Letter
- ✓ Get an independent roof inspection - Hire a licensed C-39 contractor NOT affiliated with the original contractor to inspect your roof and document actual damage (if any) vs. claimed damage
- ✓ Obtain weather records - Get official weather data from NOAA or local sources for the date of the claimed storm to verify a significant event actually occurred in your area
- ✓ Document what work was done - Photograph the current state of your roof. Compare to before photos if available. Note any work that appears substandard or incomplete.
- ✓ Gather all insurance documents - Collect insurance claim, adjuster reports, scope of work documents, and payment records
- ✓ Contact your insurance company - Report suspected fraud to your insurer's Special Investigations Unit before sending this letter - they may assist with investigation
Warning Signs You've Been Scammed
🚨 Red Flags
- Contractor contacted YOU unsolicited after a storm
- Contractor offered to waive your insurance deductible
- Pressured to sign contract immediately or "before insurance deadline"
- Contractor dealt directly with insurance, kept you out of the loop
- Work performed looks minimal compared to insurance payout
- Contractor demanded final payment before completing work
- Company is from out of state or recently formed
- Cannot find consistent business address or reviews
⚖ Legal Basis
Storm damage roofing fraud is taken extremely seriously in California. It involves both civil and criminal liability, with potential felony charges and prison time.
Penal Code Section 550 - Insurance Fraud
Knowingly presenting or causing to be presented a false or fraudulent claim for insurance payment is a FELONY punishable by 2, 3, or 5 years in state prison and/or fines up to $150,000 or double the fraud amount, whichever is greater.
Penal Code Section 484/487 - Theft
Obtaining money by false pretenses (fraud) constitutes theft. Grand theft (over $950) is a felony. Taking money for work never intended to be performed is classic theft by false pretenses.
B&P Code Section 7160 - Treble Damages
Willful departure from plans or specifications, or fraud upon the homeowner, entitles the victim to recover THREE TIMES actual damages. Storm fraud is textbook B&P 7160 fraud.
Insurance Code Section 1871.4
Making false or fraudulent statements in support of an insurance claim is a separate criminal offense, with penalties of up to 5 years imprisonment and fines up to $50,000.
Civil Code Section 3294 - Punitive Damages
In civil cases involving fraud, oppression, or malice, the court may award punitive damages to punish the defendant and deter others. These are in ADDITION to compensatory and treble damages.
🚨 Criminal Prosecution Is Common
The California Department of Insurance actively investigates and prosecutes roofing fraud, especially after major storms. "Storm chaser" fraud rings are a high priority. Many contractors have received prison sentences for these schemes. Your report could lead to criminal charges.
💡 Insurance Company Resources
Your insurance company has a Special Investigations Unit (SIU) and substantial resources to investigate fraud. They may pursue criminal referrals, civil recovery, and subrogation claims against the contractor. Contact them - they have an interest in recovering fraudulent payments.
💰 Available Remedies
Storm damage fraud cases can result in significant recovery due to the criminal nature of the conduct and multiple sources of liability.
Compensatory Damages
- Return of payments - All money paid minus fair value of work actually performed
- Cost to complete/repair - Expense to have work properly completed by another contractor
- Insurance premium increases - If your rates went up due to the fraudulent claim
- Out-of-pocket deductible - If you paid a deductible for fraudulent work
Enhanced Damages
💰 Treble Damages (B&P 7160)
Fraud entitles you to THREE TIMES your actual damages.
💰 Punitive Damages (CC 3294)
Fraud is exactly the type of conduct that justifies punitive damages. Courts have awarded substantial punitive damages in contractor fraud cases to punish and deter such behavior. There is no statutory cap on punitive damages for intentional fraud.
Criminal Restitution
If the contractor is criminally prosecuted:
- Court will order full restitution to victims as condition of sentence
- Failure to pay restitution can result in additional incarceration
- Restitution orders become civil judgments if not paid
Insurance Company Subrogation
Your insurance company may:
- Pursue civil recovery against the contractor
- File criminal referrals with the Department of Insurance
- Share recovery with you as the victim
Contractor's Bond
If the contractor was licensed, fraud is a clear basis for a bond claim up to $25,000.
✔ Multiple Recovery Sources
Storm fraud victims can potentially recover from: (1) the contractor directly, (2) the contractor's bond, (3) criminal restitution orders, and (4) insurance company subrogation actions. These can sometimes be pursued simultaneously.
👥 When to Hire an Attorney
Handle Yourself If:
- Actual damages are under $4,000 (treble = under $12,500 Small Claims limit)
- You have clear documentation of the fraud
- Contractor is still locatable and has assets
- You're comfortable filing criminal reports and insurance fraud complaints
- No complex insurance subrogation issues
Strongly Consider an Attorney If:
- Damages exceed $4,000 (treble damages would exceed Small Claims)
- Insurance company is involved and seeking subrogation
- Multiple parties or organized fraud ring involved
- You want to pursue punitive damages (requires Superior Court)
- Contractor is disputing or threatening legal action
- Complex insurance assignment of benefits issues
- Part of class action potential (many victims)
- You may be at risk of being blamed for insurance fraud
🚨 Important Warning
If you knowingly participated in the fraud (e.g., agreed to let contractor inflate claim, signed false documents, received cash back), you may have criminal exposure. Consult an attorney before making any reports or statements if there's any possibility you could be implicated.
Victim of Storm Chaser Fraud?
Get a 30-minute strategy session to understand your recovery options and protect yourself.
Book $125 Consultation →🚀 Action Steps
Get Independent Roof Inspection
Hire a licensed C-39 contractor unaffiliated with the original contractor to inspect your roof. Get a written report documenting actual condition, any work performed, and whether claimed storm damage existed.
Gather All Documentation
Collect contract, payment records, insurance claim documents, adjuster reports, photos before/after, weather records for the storm date, and all communications with the contractor.
Contact Your Insurance Company
Report suspected fraud to your insurer's Special Investigations Unit. They have resources to investigate and may assist with recovery. Get a case number and contact person.
Send Demand Letter
Complete the form above, print, sign, and send via Certified Mail. This puts the contractor on notice and gives them one chance to return the money before criminal reports are filed.
File Criminal Reports
If contractor doesn't respond: (1) File report with California Department of Insurance Fraud Division at 1-800-927-4357, (2) File police report for theft, (3) File CSLB complaint if licensed.
Pursue Civil Recovery
File bond claim (if licensed). File lawsuit seeking treble damages under B&P 7160 and punitive damages. Consider attorney for Superior Court if damages are substantial.
⚠ Act Quickly
Storm chasers are often transient - they follow disasters around the country. The contractor may leave your area soon. Document everything immediately, send your demand letter quickly, and file criminal reports without delay to increase chances of recovery and prosecution.