Tips to Avoid Contractor Scams After Devastating Storms

As homeowners begin to rebuild their lives after devastating natural disasters like Hurricane Helene, many still face danger – not from Mother Nature, but from unscrupulous contractors seeking to profit from their distress.

When urgent repairs are needed for plumbing, HVAC, or electrical systems, homeowners may feel pressured to quickly hire the first contractor who knocks on their door. This rush can result in scams, shoddy work, or incomplete repairs. To safeguard yourself and ensure your home receives proper care at a fair price, HVAC.com provides the following tips to help you avoid contractor scams after natural disasters such as hurricanes.

How to Avoid Contractor Scams After a Natural Disaster

Contact Your Insurance Company

Before scheduling repairs or signing an agreement with a contractor, contact your insurance company and have them evaluate the damage beforehand. Don’t rely on a contractor to tell you what’s covered, and be cautious about signing an Agreement of Benefits (AOB), which could transfer your insurance rights to a contractor, according to the National Insurance Crime Bureau. This ensures that you fully understand your coverage and can make informed decisions about repairs.

Avoid Upfront Payments

Aside from potentially a small down payment, be wary of contractors who ask for money upfront, and NEVER pay a large sum of money or the total cost of the project in full before the work is completed. Amidst the confusion and chaos of a recovery zone, some out-of-towners posing as contractors may take your money and run, or perform shoddy work. Always get payment terms in writing to avoid confusion or disagreement.

Ask for Identification

Many unlicensed contractors and scammers prey on recovery zones, hoping to make a quick buck from people who are desperate for help. If they can’t provide proper identification for themselves and the company they represent, it’s a red flag. Always say “no” to any contractor who cannot verify their identity.

Verify License and Insurance

While regulations vary depending on the state you live in and the type of work being performed, many contractors and home services companies are required to be licensed and insured, especially plumbers and electricians. Don’t just take their word for it that they hold all of the proper credentials – ask to see them. If pertinent for the work being performed, verify that the contractor is licensed and insured in your state to protect you from liability if something goes wrong.

Don’t Pay for Government Assistance

According to the Federal Trade Commission, never pay anyone money to help you qualify for government funds through FEMA or the Small Business Administration, as it’s a scam. You can download the FEMA app to get information about potential assistance.

Get Multiple Estimates

Once you’ve narrowed down potential contractors, get at least three estimates. This will give you a better idea of the average cost and help you identify any bids that seem unusually low or high. When comparing estimates, make sure they include a detailed description of the work to be done, the cost of materials and labor, a timeframe of how long the project will take, and the contractor’s information.

It’s important to note that automatically going with the lowest bid doesn’t always mean it’s the right one. In certain cases, the lowest contractor bid can lead to compromised quality and unforeseen costs, as it may reflect inexperience or subpar materials. Ask the contractor why their estimate is lower (or higher) than their competitors.

LEARN MORE: Tips for Hiring an HVAC Contractor

Ask About Their Experience with Flood Damage

Flooding, such as that experienced by communities across the Southeast during Hurricane Helene, can cause extensive damage to homes and businesses. It’s crucial to hire a contractor experienced in flood damage repair. Ask potential contractors how many projects they’ve handled related to storm or flood damage. They should be well-versed in assessing and repairing or replacing HVAC, plumbing, and electrical systems affected by water.

Do Your Research

Take some time to research potential contractors before hiring anyone. You can search through reviews on sites such as Angi, Yelp, and Google, and check if they have a page with the Better Business Bureau. If possible, try to hire a local company. You can ask for recommendations from neighbors, family members, or community groups. Local contractors often have a better understanding of the specific challenges in your area.

Trust Your Instincts

Finally, trust your gut. If something feels off about the contractor, move on. Some of the potential signs of scams include pressure tactics, a lack of documentation, and unprofessional behavior in regards to their communication or appearance.