Contractor scams are nothing new to the roofing industry. They often involve contractors asking for upfront payments and never completing the work — if they do it at all — leaving homeowners in the lurch with less money to maintain their homes. Other times, contractors waive insurance deductibles before using shoddy materials or practices and send inflated bills to insurance companies.

More states are taking action to ensure licensed contractors are performing the work. Among them is North Carolina, which signed into law Senate Bill 124 last June to protect residents from scams. The law provides a five-day cancellation period for residential roof replacement or repair contracts following an insurance claim denial.

The law states that contractors shall not begin work or collect any payment until the five business days have expired. An exception is made if emergency services are performed and acknowledged by the insured in writing as necessary to prevent further damage. Violators can be charged with a Class 1 misdemeanor.

North Carolina laws state that a contractor's license is not needed if a job costs under $40,000 to complete. However, the North Carolina Licensing Board for General Contractors encourages residents to use licensed contractors regardless of the job.

“During hurricane season or any natural disaster, the risk of encountering contractor scams increases significantly, and it’s important to emphasize the heightened risk of individuals posing as legitimate contractors,” said Ryan Cody, executive director at the NCLBGC, in a written statement.