Buying a roofing company in Florida

A roofing company replaces and repairs roofs: shingle, tile and metal on homes, and flat or low-slope systems on commercial buildings. In Florida, re-roofing is the heart of most companies, and weather and insurance drive much of it. Storms create waves of work. Insurance does too: Florida insurers may require a roof that's 15 or more years old to be replaced before they issue or renew a homeowner's policy, unless an inspection shows at least five years of life left. That sends many homeowners to roofers.

Customers include homeowners paying cash or financing, homeowners whose insurance claim pays part of the job, property managers and condo associations, and general contractors who need roofs on new buildings. A replacement is a one-time sale; repeat revenue comes from repairs, maintenance and commercial customers with several buildings. A typical company has a few crews (its own or subcontracted), a production manager, estimators who inspect roofs and write proposals, office staff who handle permits, inspections and insurance paperwork, and the owner.

• Steady demand between storms: a healthy base of homeowner re-roofs, repairs and commercial accounts, not just surges after hurricanes.
• Its own crews, or long-standing subcontract crews with documented insurance.
• Manufacturer certifications that let it offer extended warranties, and a record of honoring them.
• Commercial customers who call it for repairs and inspections year after year.
• A production manager who runs crews, material deliveries and inspections without the owner.
• Estimators who measure accurately and price tile, metal and flat roofs with confidence, since each fails differently.
• Good standing with permit offices: few failed inspections, no old open permits.
• Marketing that doesn't depend on chasing insurance claims, which Florida restricts closely.
• Supplier accounts with good terms, so the company can buy materials ahead of a busy season.

The Construction Industry Licensing Board at the Florida DBPR licenses roofing contractors. Certified roofing contractors (license numbers starting with CCC) can work statewide. Registered roofing contractors can work only where they hold a local license. A general, building or residential contractor certified after 1973 can't advertise as a roofer without a roofing license too. You can own a roofing company without a license, as long as a licensed qualifier supervises its work; the license stays with that person. If the only qualifier leaves, the company has 60 days to hire another but can't contract in the meantime, apart from finishing existing jobs with the board's permission.

Florida also limits how roofers deal with insurance claims (section 489.147). Contractors may not offer gifts, rebates or deductible waivers for a roof inspection or claim. They may not interpret policies or adjust claims unless they're also licensed public adjusters. Ads urging homeowners to file roof claims must include required disclosures. Fines can reach $10,000 per violation. Roof contracts must carry set notices, and a homeowner who signs within 180 days of a declared emergency can cancel within 10 days or by the start of work. Under policies issued since January 1, 2023, homeowners can't assign their insurance benefits to a contractor.

• Revenue for the last five years, and how much came after named storms. Judge the company on a normal year.
• The share of jobs tied to insurance claims, how the company finds them, and whether its ads and contracts follow the state's rules.
• Any old assignment-of-benefits jobs (where the homeowner signed the insurance claim over to the company) still unpaid or in litigation.
• Signed jobs not yet started, especially after a storm, when homeowners can still cancel.
• Workmanship warranties the company promised and manufacturer warranties it registered.
• Construction defect risk. In many cases Florida allows defect claims up to seven years after a job is finished, so past work stays a risk. Ask your attorney how to keep the seller responsible for it.
• How crews are set up, and proof of workers' compensation for everyone on a roof. Roofing is risky, and insuring it is costly.
• Open permits and failed inspections.

• Whose license does the company work under, and will they stay after a sale?
• How did your revenue look in years without a major storm?
• How do new customers find you, and what share of jobs involve an insurance claim?
• Do you use your own crews or subcontractors, and how long have they worked with you?
• Which manufacturer programs are you in, and what warranties have you registered?
• Are any jobs in dispute, or any insurance payments still outstanding?
• How many jobs are signed and waiting to start right now?