Warm weather is high season for crooked contractors to cheat homeowners with bogus repairs, the Coalition Against Insurance Fraud warns.
Severe rainstorms, hail, tornadoes, hurricanes and wild fires are in season, we’re reminded on the first anniversary of the tornado that devastated Joplin, Mo.
Most contractors are honest, but shady and incompetent ones typically go door-to-door. They’re trying to cheat honest homeowners who need repairs often urgently after a storm ― or for routine seasonal fixups.
http://liarcatchers.com/insurance_fraud.html
Homeowners could lose thousands of dollars to contractor scams, and have big headaches fixing bad repair work. Homeowners also could face large expenses if their insurance policy doesn’t cover fraudulent repairs, the Coalition notes.
Contractor inquiries have ranked No. 1 for five straight years by the Better Business Bureau. Contractor-related complaints were ranked 3rd by the Consumer Federation of America for 2010.
In fact, several contractors have been charged with defrauding storm-damaged homeowners in Joplin.
Five Worst Scams
Pre-pay. The contractor demands a large cash payment upfront, then disappears after doing little or no work. They also may illicitly require you to pay for bids.
Shoddy work. The work is low quality, using cheap materials. Homeowners may have to redo the entire job, often at their expense.
Phantom damage. A contractor creates storm damage. Nicking undamaged sidewall or roof shingles with a screwdriver to mimic hail damage is one come-on.
Inflated damage. Contractors may enlarge holes in a roof to increase their billings. Simply inflating the bill to include more work than was done is another ruse.
Pay your deductible. Offering to pay your insurance deductible to get your business typically is a come-on to lure you for fraudulent work.
Six Ways to Fight back
Avoid door-to-door contractors. You’re risking a world of trouble. Legitimate contractors normally are too busy to knock on doors.
Verify license. Contact your state and local licensing agencies to ensure the contractor is licensed.
Contact local Better Business Bureau. Does the contractor have a history of complaints? See if the contractor has a BBB review.
Work with your insurance company & agent. Don’t let the contractor do the talking. Work directly with your insurer to assess the damage & determine what repairs are covered. Get the right repairs done, and done right.
Insist on a contract. Have a signed contract specifying exactly what work will be done, plus the price and repair schedule. Never sign a contract with blanks.
Watch for red flags. No business cards or referrals…P.O. Box instead of a street address…van looks rundown and has no company name…poor personal appearance…can’t show proof of workers compensation insurance or surety/performance bond.
