In the North American market, roofing replacements make up over 90% of the market's value and volume according to BCC Research. Although you may want to put it off for as long as possible, eventually your roof will need to be replaced, and when it does, you want to make sure that you have a company to call that you can trust. However, not all roofing companies are legitimate, and here are three warning signs that you need to know before hiring one.

1. Ask Friends and Family

When you are looking for a local roofing contractor, it's best to ask for recommendations from friends and family. They can be very reliable sources for the quality of work that the contractor may provide. If your friends or family don't have anything great to say about a specific roofer, it may be best to steer clear of them and look for one that is trusted and has a better reputation.

Additionally, you can look online for reviews from past customers, and if you notice any discrepancies - such as overwhelmingly negative reviews - you may want to look elsewhere.

2. Only Accepting Cash

Payment should always be discussed before any work begins, and almost no reputable roofing contractor will insist on cash payments. If you're told that cash is the only payment option, you should step away and look elsewhere.

The reason that it is a red flag is that cash doesn't leave a paper trail that you can reference if something goes wrong. For instance, if you pay them for work, but they fail to complete the job correctly, you have no way to prove the amount that you paid them and, therefore, will have a harder time proving that you didn't get what you paid for.

Never pay in full upfront and never pay in cash.

3. No Insurance or License

All reputable roofing contractors will be able to produce proof of a license and insurance. If they don't look elsewhere.

A license is important as it will ensure that they have the ability to do the job you are paying them for, and insurance ensures that any damage or injuries that happen on your property are covered. If a company doesn't have this insurance, you may end up being held accountable, which is something that you should never have to deal with.

When it comes to hiring a roofing contractor, there are a lot of good options to choose from. However, there are also some less reputable contractors that you'll want to steer clear of. Keep these three red flags in mind, so that you can hire the best contractor possible.