Every year, many homes and commercial buildings are damaged by severe storms. This can lead to property owners falling victim to unlicensed, uninsured, inexperienced contractors and outright scammers who come to prey on the vulnerable.
Many scam companies imitate legitimate contractors by knocking at your door or calling on the phone, and it can be difficult to identify the scams before it is too late. However, the Coalition Against Insurance Fraud has examined the worst contractor scams property owners may face and has developed ways to avoid them. Here are some of those ways.
- Avoid door-to-door inquiries. Hire reputable contractors that are based locally or in your region. Ask for referrals from people you know and trust.
- Verify their license. Be sure your contractor is licensed by contacting your state and local licensing agencies.
- Conduct a background check. Does your contractor have a history of complaints? Find out by contacting your local Better Business Bureau or by contacting their past clients, if possible. Interview several contractors and take time to carefully review your options.
- Work with your insurer. Maintain direct communication with your insurer rather than having your contractor serve as your spokesperson.
- Sign a contract. Sign a contract that specifies what will be done, how much it will cost and when it will be done by. Use caution if asked for a substantial up-front payment or cash payment.
Don’t be fooled by common scams during the storm season. Follow these tips and avoid losing hundreds of dollars or incurring further property damage caused by poor quality contractors and scammers.
If you live in Oklahoma, contact the Attorney General’s Consumer Protection Unit to find out if complaints have been filed against a contractor. Consumer protection information is available at oag.ok.gov/consumer-protection or by calling 1-833-681-1895.