Avoid Contractor Scams After a Storm: Key Tips to Stay Safe
After a major storm or natural disaster, rebuilding is a priority, but it's also the perfect time for scammers to take advantage of vulnerable homeowners. Here's how you can protect yourself from contractor scams and ensure you’re working with reputable professionals. These tips, drawn from expert advice, will help you avoid getting ripped off during the restoration process.
1. Get Multiple Bids
Don’t jump on the first contractor who knocks on your door after a storm. Always get multiple bids for the work. This gives you a good idea of the market rate and helps you avoid offers that are suspiciously high or too good to be true. Make sure the bids are written on company letterhead with a valid contact number and address. If the contractor balks at providing this, consider it a red flag.
2. Verify References
Before signing anything, do your homework. Ask for references and actually follow up on them. Check online reviews if available, and make sure the contractor has a good reputation. Scam contractors thrive on quick deals and immediate payments, so take your time to verify who you’re hiring.
3. Be Cautious with Contracts
Always read through contracts carefully. Watch out for contractors who try to pass off contracts as “just an estimate.” This is a sneaky way for scammers to hike up the price later. Another big no-no is signing contracts with blank spaces that can later be filled in with higher costs. Lastly, avoid contracts that say, “homeowner agrees to listed repairs for the value of insurance proceeds,” which allows contractors to pocket the entire insurance payout.
4. Down Payments – Beware!
Post-disaster scammers often ask for large sums of money upfront. Did you know that in some areas, it's actually illegal for out-of-town contractors to ask for any payments before starting work? Be wary of anyone who requests a big down payment, and never pay in full before the job is done.
5. Don’t Fall for Deductible Waivers
If a contractor offers to "waive your deductible," run in the opposite direction. This practice is illegal in many places and is a telltale sign of a scam.
Final Tip:
If you're ever unsure about a contractor's legitimacy or have questions about your insurance, don’t hesitate to contact the Texas Department of Insurance or a similar resource in your area. They can provide guidance and help you avoid falling prey to scams.
What to Do if You’re Scammed
Stop Payments and file a report with the Federal Trade Commission (FTC) or local consumer protection agencies.
Document Everything: Keep records of all communications and transactions with the contractor.
