Contingency agreement
What is a contingency agreement?
A homeowner contract that authorizes the roofer to do the work if and when the insurance claim is approved.
Definition
A contingency agreement is the contract a homeowner signs early in the process — usually right after the inspection. It commits them to using your company for the roof if the claim is approved, contingent on the carrier accepting the loss.
It protects you from doing the inspection and adjuster legwork only to have the homeowner shop the job elsewhere. It also lets you represent the homeowner’s interests with the carrier during the claim.
Contingency agreements are regulated by state, and many require specific cancellation language and disclosures. Using a compliant agreement keeps the relationship clean and the claim moving.
Related terms
Storm restorationThe business of repairing or replacing roofs damaged by storms, paid for primarily through insurance claims rather than out of pocket.Public adjusterA licensed adjuster the homeowner hires to represent their interests against the carrier — usually for a percentage of the claim.Certificate of completionA signed document confirming the roof work is finished — usually required before the carrier releases the recoverable depreciation.DeductibleThe amount the homeowner is responsible for paying out of pocket before the insurance coverage kicks in on a claim.