DES PLAINES, Ill., Feb. 12, 2015 -- As the Northeast continues to get pounded by storm after storm, there's one more threat that Bostonians need to watch out for: shady contractors, or "storm chasers," looking to make a fast but fraudulent buck using your homeowners insurance. Heavy snowfalls are damaging roofs, resulting in an unusually large number of insurance claims, and those storm chasers can't wait to get their hands on your money.
After a disaster, contractors will often go door-to-door in affected neighborhoods offering clean up, construction or other repair services. Most of these business people are reputable, but many are not. The dishonest ones may execute schemes to defraud innocent victims, such as:
- pocketing the payment and never showing up for the job;
- never completing a job that was started; or
- using inferior materials and performing shoddy work that's not up to code.
Almost all of these scams are unsolicited—they begin with a knock on the door from a contractor seeking work. The National Insurance Crime Bureau recommends that "if you didn't request it, reject it." If you have storm damage, call your insurance company first.
NICB offers these tips before hiring a contractor:
- Take pictures of your property before, during and after flooding or other damage
- Get more than one estimate
- Get everything in writing: cost, work to be performed, work and payment schedules, guarantees, and any other expectations
- Demand references and check them out
- Ask to see the salesperson's driver's license and write down the license number and their vehicle's license plate number
- Never sign a contract with blanks; unacceptable terms could be added later
- Never pay a contractor in full or sign a completion certificate until the work is finished and ensure reconstruction is up to current code
- Make sure you review and understand all documents sent to your insurance carrier
- Never let a contractor pressure you into hiring them or letting them do unnecessary work
- Never let a contractor interpret the insurance policy language
- Never let a contractor discourage you from contacting your insurance company
For more on disaster fraud, watch this video.