From Roof Rip-Offs to Fake Repairs: Insurance Fraud in Florida Making Headlines

Insurance fraud in Florida isn’t an abstract issue – it’s a crisis playing out in real time. Contractors promising free roofs, scammers impersonating legitimate businesses, and companies blaming internal fraud while homeowners foot the bill are making headlines across the state.

These aren’t victimless crimes. They leave families with liens, lawsuits, unfinished repairs, and sometimes the very real threat of losing their homes. They also push insurance premiums higher for every honest policyholder.

Florida is especially vulnerable. Hurricanes and severe storms make roof damage common, which dishonest contractors can exploit. In fact, after Hurricane Helene in 2024, the Florida Attorney General issued a consumer alert cautioning residents to watch for contractor fraud and repair scams in storm-affected areas. Meanwhile, industry observers like the National Insurance Crime Bureau have long warned about spikes in contractor fraud targeting homeowners after major storms, especially in states with high property risk like Florida.

Here are three recent cases highlighting how dangerous these schemes can be.

Complaints Pile Up: Florida Roof Specialists Under AG Investigation

The Florida Attorney General’s office is investigating Florida Roof Specialists after more than 128 complaints poured in from homeowners in Pinellas County and beyond. Customers say they were promised new roofs fully covered by their insurance. Instead, many wound up with liens on their homes, unfinished work, or foreclosure notices.

In one widely reported case, a 73-year-old Lakeland woman trusted the company to replace her roof. When her insurance payout didn’t match the contractor’s inflated bill, the company filed a $21,774 lien against her property, with interest climbing by the month. Now she faces the terrifying prospect of foreclosure in her retirement years. This story captures the human cost of insurance fraud in Florida. It’s not just about inflated invoices – it’s about financial devastation for people who did nothing more than believe a contractor’s promises.

On Sept. 18, 2025, the State of Florida sued Florida Roof Specialists. Watch the WFLA News Channel 8 video update:

Embed: https://www.youtube.com/watch?v=-tWiDIGh_7k

Gravity Roofing Impersonated in South Florida Scam

In South Florida, homeowners thought they were dealing with Gravity Roofing, a legitimate Orlando company with a clean record. They weren’t. Fraudsters allegedly impersonated the business, using its name and license details to scam residents out of thousands in deposits for jobs they never even started.

The real Gravity Roofing owner had to file a complaint with the state after learning his company’s reputation was being hijacked. Victims were left with empty pockets and no recourse against the impersonators, who disappeared once money changed hands.

This case highlights a newer wrinkle in insurance fraud in Florida: even homeowners who carefully select a reputable company can still be deceived if criminals are impersonating licensed businesses.

Simple Steps to Verify Your Contractor Is Legit

So how can homeowners protect themselves in this type of scenario? Start with verification.

• Check licensing: Use the Florida Department of Business and Professional Regulation’s (DBPR) website to confirm an individual contractor’s license is active and matches the company name.

• Call the company directly: Use contact information from the company’s official website – not what’s on a flyer or what someone has given you.

• Be cautious with deposits: Florida law says if a contractor takes 10% or more upfront, they must apply for permits within 30 days and start work within 90 days (unless your contract says otherwise). Missing those deadlines isn't just sloppy – it can carry criminal penalties.

Family First Roofing Scandal Leaves Sarasota Homeowners Stuck

In Sarasota County, dozens of homeowners signed contracts with Family First Roofing, only to find themselves caught in what’s being called a roofing scandal. Residents report paying thousands for roof replacements never finished – or never even started. Some were hit with liens after insurance payouts failed to match the contractor’s inflated charges.

Family First Roofing responded by blaming internal fraud within the company. But for homeowners, the excuses don’t matter. What matters is their roofs remain unfinished, their money is gone, and their trust in contractors is shattered.

This case underscores another side of insurance fraud in Florida: when companies deflect blame onto vague internal issues, homeowners are left stranded. While lawsuits and state complaints play out, many homeowners end up paying twice for the same room – once to the scammer, and again to someone else just to get the job done.

AOBs: Outlawed But Still a Risk

For years, Assignment of Benefits (AOB) agreements fueled these kinds of scams. Under an AOB, homeowners signed over their insurance benefits to a contractor, who then controlled the claim and the payment process. Many contractors used this authority to inflate damages, sue insurers, and leave homeowners caught in the middle.

Recognizing the damage, Florida lawmakers stepped in. As of January 1, 2023, AOBs are no longer permitted for property insurance policies issued or renewed in the state. The ban followed years of rising premiums and mounting lawsuits tied to AOB abuse.

However, some contractors continue to push similar paperwork under different names, hoping homeowners won’t notice the fine print. The best defense is awareness. If anyone asks you to sign a document handing control of your claim to a contractor, stop and call your insurance agent or insurer. It could be an attempt to sidestep the law – and a warning sign of potential insurance fraud in Florida.

More Florida Homeowner Experiences With Shady Contractors and Insurance Fraud

Want to see just how widespread contractor scams have become? The Florida Department of Financial Services (DFS) maintains a dedicated site where residents share their experiences with fraudulent contractors. These firsthand accounts are sobering and show how easily scams can devastate families. Some of the cases highlighted on the DFS site include:

• Elderly couple charged nearly $99,000 after a contractor gutted their home post-Hurricane Michael.
• Naples residents lured with rebates to sign AOBs and bogus advertising agreements.
• Manatee County arrests for unlicensed contracting and no workers’ comp coverage.
• Seniors in Lee County promised free roofs in exchange for shady contracts.
• Bay County homeowners hit with liens when repairs were never started.

Edison’s SIU: Protecting Homeowners from Fraud

At Edison Insurance Company, we know these stories don’t just harm insurers. They harm families – people who want nothing more than to keep a safe roof over their heads. Fraudulent claims and inflated invoices ultimately raise costs for every honest homeowner.

This is why Edison has an in-house Special Investigations Unit (SIU) committed to fighting fraud at every level. Our SIU team works with law enforcement, regulators, and industry partners to identify suspicious claims, investigate bad actors, and protect our policyholders from scams.

But we can’t do it alone. Homeowners are the first line of defense. If a contractor promises you a free roof, pressures you to sign documents, or suggests questionable shortcuts, trust your instincts. If it doesn’t feel right, it probably isn’t.

You can reach Edison’s SIU directly to report suspicious activity:

• Fraud Hotline: 866-923-2920
• Email: reportfraud@windwardrisk.com

Your call could stop a scam in its tracks, protect your neighbors, and help stabilize insurance costs for communities across Florida.

Protecting Your Home From Insurance Fraud in Florida

Fraud thrives when no one speaks up. The recent headlines from Pinellas and Polk counties, South Florida, and Sarasota prove insurance fraud in Florida is widespread and deeply damaging. It leaves homeowners facing liens, foreclosure threats, and financial ruin simply for trusting the wrong company.

By staying alert, verifying contractor licenses, being cautious with deposits, and contacting Edison’s SIU when something seems off, you can protect your home – and play an important role in reducing fraud across the state.

Already insured with Edison? Your agent is your best ally. Contact your agent if you’re approached by a questionable contractor or pressured to sign paperwork. They can confirm what’s legitimate and protect your claim from being hijacked.

Not with Edison Insurance Company yet? Get a quote today and see how we combine reliable coverage with a dedicated SIU team putting fraud prevention front and center.

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