Video from insurance investigation shows NC roofers ripping shingles, defrauding state and companies

Newly obtained investigative video from the North Carolina Department of Insurance shows contractors allegedly damaging roofs on purpose to try to defraud the state and insurance companies. 

"We're not saying every roofer does this. There's a select few doing this," Kristen Mercer says, Special Agent in Charge with the Department of Insurance's Fraud Control Group. 

Since roofing contractors receive a percentage of roofs paid out by insurance companies, Mercer says, there is an incentive for people to falsify damage for the commissions.

As fraudulent claims are paid out, Mercer adds, the more homeowners are left on the hook.

"What people need to keep in mind is insurance companies need to make money somewhere," Mercer said. "If they pay off on fraud, they raise people's premiums. Fraud takes a portion of your premiums every day because insurance companies need to foot that bill. All of this damage trickles down to the homeowner who is insured and makes their premiums go up because the insurance company recoups their money somewhere."

WRAL's 5 On Your Side previously reported on a sting operation that led to the arrest of a Charlotte-area contractor with Raleigh ties. According to investigators, Robert Allen Bentley and a co-worker intentionally bent and damaged shingles on the roof of a Wake County home, then falsely claimed the damage was caused by wind and hail.

The sting used a “bait house,” along with engineering experts and surveillance, and was conducted by the Department of Insurance and Farm Bureau’s Special Investigations Unit.

The investigation video shared with WRAL News is not from a bait house, according to a spokesperson. 

What the new videos show

Mercer walked WRAL 5 On Your Side through several videos of roofers marking shingles as damaged. She said the problem is that the chalked marking comes after they're seen pulling the shingles with enough force that the adhesive can be heard separating from the roof and the house. 

Mercer said they are examples of contractors attempting to replicate wind damage. According to a spokesperson for the DOI, faces are blurred because the individuals in them are part of active criminal investigations. 

When asked how rare it is for the department to have video of roofing fraud as part of their investigations, Mercer admitted it was "very rare."

"It's difficult," she said, on the difficulties of prosecuting these cases.

"We need to know that roofer is the one who did it," Mercer said. "We're working through it."

Lack of dedicated state board contributes to problem

General contractors who work on a project that is valued at more than $40,000 require licensing through the North Carolina Licensing Board for General Contractors. 

In North Carolina, several service and medical professions have their own dedicated state boards: Nursing, dentistry, heating and plumbing. However, the same doesn't apply for roofing contractors.

Mercer said that without a dedicated state board, oversight of roofing professionals in the state remains susceptible to fraud. 

"There is no certificate, no oversight on these roofers," Mercer said. "They [people] can just go out and be a roofer, they don't have to go out and get a license, a certificate.

"It makes it easier to go out and start their roofing business. We would like to see more oversight on them in the future."