Roofers Under Fire for Acting as Unlicensed Adjusters After Iowa Sting Operation

In a recent sting operation conducted by the Iowa Insurance Division, four roofing companies, including Reeves Roofing, were issued cease-and-desist orders for allegedly acting as unlicensed public adjusters. The crackdown follows concerns about roofers negotiating with insurance companies on behalf of homeowners without the proper licensing. According to Iowa law, contractors are prohibited from acting as both contractors and adjusters on the same project, and they must be licensed and trained to negotiate claims with insurers.

The investigation took place in Greenfield after a destructive EF-4 tornado swept through the town. An undercover investigator posing as a homeowner solicited advice from Reeves Roofing, leading to allegations that Reeves improperly offered to handle insurance claims. Reeves denied the charges, claiming the investigator baited him into violating the law. Local contractors argue that the state is overstepping its authority, potentially hurting customers by limiting their options when dealing with insurers after storm damage.

The issue has sparked a larger debate about whether contractors, who often know the damage and repair process intimately, should be allowed to assist with insurance claims. Meanwhile, the Iowa Insurance Division insists that strict enforcement is necessary to protect homeowners from potential fraud.