Consumer Tips: Don’t Let Construction Cons Catch You Off Guard

When a disaster damages your home, getting it repaired is a top priority. As tempting as a quick fix might be, the first thing you should do is contact your insurance company to report the loss:

• Keep copies of your insurance documents and a record of communication with your insurance company, including names of the people you speak with, dates, times and important information.
• To the extent possible, prevent further loss to your property. But don’t throw away damaged property until your insurance company advises you it is all right to do so.
• Take pictures documenting damages.

Above all, choose your contractor carefully. Property repair fraud usually involves unethical or incompetent building contractors. Make sure the contractor is licensed, if required by your state.

Ask to see the contractor’s license along with other identification. If someone claims to be representing a contractor, but cannot show you a contractor’s license or home improvement salesperson registration card, call the contractor and find out if the person is authorized to act on their behalf.

Consider it a red flag if your contractor:

• does not have a local office or local telephone number.
• is not willing to provide references.
• uses a hotel or restaurant as their contact location.
• handles all business in person, avoiding the use of mail.
• wants a full cash payment up front.
• does not have adequate equipment to perform the job.
• approaches you at a loss site without being solicited.
• gives an estimate that is very general.
• does not have a contractor’s license bond, if required by the state.
• is unwilling to provide a certificate of insurance from their general liability or workers compensation insurance carrier.
• gives you a bid far below the bids you received from other contractors.

Help fight fraud­­­­

The most common fraud that occurs after a disaster generally involves price gouging, incompetent work, use of poor-quality materials, unauthorized property removal, and fraudulent charitable solicitations. Because property loss from a disaster can be so traumatic, victims of disaster can become easy targets for fraud. If you suspect fraudulent activity, go online and find out what the governing body is for your state’s contractors, and get in touch with them immediately.

For more information, call your AAA insurance agent or insurance customer service, or visit your local branch.