What Storm Chasers Won't Tell You: How to Spot an Out-of-State Contractor After a Michigan Hail Event

Every time a major hail storm moves through SE Michigan, a wave of contractors follows it. Some are from Ohio. Some are from Indiana. A few are from states you have never heard of. They show up in pickup trucks with out-of-state plates, knock on doors within 48 hours of the storm, and offer free roof inspections. Some of them do decent work. Some of them disappear once they have a signed contract and a check from your insurance company.

This is not a hypothetical. The Michigan Department of Insurance and Financial Services has documented it. The Michigan Attorney General has prosecuted it. Phase III Construction has cleaned up the aftermath more than once.

Here is what storm chasers will not tell you, and what you need to know before you sign anything.

What Is a Storm Chaser?

A storm chaser is a contractor who tracks weather events and deploys crews to affected areas looking for quick work. Not all of them are fraudulent. Some are legitimate roofing companies from surrounding states that follow regional work as it moves. The problem is that the business model -- high volume, fast close, move to the next city -- creates conditions where homeowners get hurt.

The warning signs are consistent: they show up unsolicited within 24-48 hours of the storm, they pressure you to sign immediately before your adjuster has visited, they ask you to sign an Assignment of Benefits agreement that shifts control of your insurance proceeds to them, and they frequently carry no Michigan Builders License.

The Michigan Builders License Requirement

Michigan law requires any contractor performing residential construction or structural repair to hold a Michigan Builders License issued by the Department of Licensing and Regulatory Affairs (LARA). This is not optional. It is not a technicality. It is the legal threshold for doing restoration work on a Michigan home.

When a storm chaser shows up with an out-of-state contractor license, that license does not transfer to Michigan. They are operating unlicensed. If something goes wrong -- a roof leak, structural failure, substandard materials -- you have almost no legal recourse. Your insurance carrier will also scrutinize any claim paid to an unlicensed contractor.

Phase III Construction holds Michigan Builders License #262000615. You can verify any contractor at Michigan.gov/LARA before you let them on your roof.

The Assignment of Benefits Trap

One of the most common tactics storm chasers use is the Assignment of Benefits (AOB) or direction-to-pay agreement. Signing one of these transfers your right to collect your insurance benefits directly to the contractor. This means the contractor can negotiate and settle your claim without your involvement, pocket the insurance proceeds, and do whatever work they see fit.

You have just surrendered control of your own insurance claim. If the contractor does poor work, disappears, or settles your claim for less than its full value, you have no recourse and your claim is closed.

Do not sign an Assignment of Benefits. Ever. A legitimate contractor works alongside you through the claim process. They get paid when the work is done and your carrier releases funds. They do not need you to sign away your rights before work begins.

Why Speed Pressure Is a Red Flag

A legitimate restoration contractor wants you to go through the proper claims process. That means filing with your carrier, scheduling an adjuster inspection, receiving a scope of loss, and reviewing it carefully before any work begins. That process takes days, sometimes weeks. A contractor pushing you to sign a contract and begin work immediately -- before your adjuster has visited -- is not trying to help you. They are trying to lock you in before you know what your claim is worth.

After a significant hail event, your adjuster will be busy. You may wait 7-14 days for an inspection. That wait is not a crisis. It is normal. Any contractor who tells you that you need to act today to protect your claim is using urgency as a sales tactic, not giving you accurate information about how Michigan insurance claims work.

What a Legitimate Michigan Contractor Does Instead

A licensed Michigan restoration contractor does four things that separate them from a storm chaser.

Documents damage before work starts. Photos, measurements, and a line-item Xactimate estimate before any discussion of payment. This protects you if your carrier tries to underpay.

Works with your adjuster, not around them. They attend the adjuster inspection, point out every item in scope, and supplement the claim if the initial estimate is too low. This is standard practice -- not something they should charge extra for.

Carries Michigan-specific license and insurance. A valid Michigan Builders License, liability coverage, and workers compensation. If a crew member is injured on your property and the contractor has no workers comp, you can be held liable. Ask for certificates before anyone gets on your roof.

Does not ask you to sign away your claim. You remain the policyholder. You approve the scope. You release the funds only when work is complete and you are satisfied.

Three Checks Before You Sign Anything

1. Michigan Builders License: Go to Michigan.gov/LARA and use the License Search. Enter the license number they give you. If they cannot produce a license number that verifies in the LARA database, stop there.
2. BBB Accreditation: The Better Business Bureau maintains records on complaints and how they were resolved. An A+ rating with accreditation means a track record of standing behind work. A pattern of unresolved complaints is a disqualifier.
3. Physical Michigan Address: A real Michigan contractor has a verifiable office address, not a PO box or an out-of-state address. Ask where their office is and verify it. If they are based in another state with no Michigan presence, they are a storm chaser by definition.

Phase III Construction: Here Before the Storm, Here After It

Phase III Construction has been in Westland since 1993. Our office is at 37600 Ford Rd. We have been through Michigan hail seasons, ice storms, fires, and floods. We do not chase storms. When storm damage hits SE Michigan, we serve the Michigan homeowners we have always served -- with licensed Michigan tradespeople and a process built around getting your claim paid correctly.

We document every line item. We supplement underpaid claims. We do not ask you to sign away your rights.

If a contractor knocked on your door after the last storm and you are not sure whether to trust them, call us first. A second opinion costs you nothing. A bad contractor can cost you everything.