In the wake of Hurricane Harvey, thousands of homes and businesses across the Gulf Coast need repairs and renovations, either because of wind damage, tornadoes, or the floodwaters that devastated our region. As a result, contractors and repair companies have inundated our area to provide these much-needed services. But, there are some contractors who are only here to take advantage of unsuspecting or vulnerable customers, and some property owners may find themselves becoming a victim again because of these scammers and their fraudulent work. In today's Aegis blog post, we look at four ways property owners can hopefully avoid becoming a victim of repair or contractor scams.
Search By Reputation, Not Convenience
Sadly, some of the first people that drive through impacted neighborhoods and businesses areas after a storm are people looking to solicit work for debris removal or contractor work for repairs. While it might be convenient to hire them on the spot, they might not be legitimate contractors and are more likely to scam you out of money. Property owners should always try to avoid solicitors going door to door, and should ask trusted friends and family members instead for recommendations and referrals for their preferred contractors. Also, online searches can provide reviews and helpful information for local licensed and insured contractors.
Ask For Information and References
Home or business repair work is important and costly, so customers should never be afraid to ask questions or ask for references. Important questions to ask can include what kind of materials they use for their repairs, how long they've been in business, and if there are guarantees or warranties for the work they perform. In addition, it's important to ask for and review their references as well as their proof of insurance. Home and business repairs can be risky and dangerous work, and property owners hiring contractors without proper commercial insurance could be held liable if a contractor is hurt performing work on their property.
Don't Pay Everything Upfront
One of the quickest ways scammers take advantage of property owners (particularly the elderly) in need of prompt repairs and services is by demanding full or a substantial partial payment in cash up front. An honest and reputable contractor will not demand full payment up front, and will usually offer a reasonable payment schedule that requires the project to be fully completed before they receive the full balance. Also, property owners can also protect themselves by only paying by credit card instead of cash or check, which offers them a way to be financially protected in case they get scammed.
Get Everything In Writing
The biggest key to avoiding becoming a victim of repair scams and fraudulent contractors is to get everything in writing. Contracts should detail exactly what will be repaired, how it will be repaired, estimates for project completion, estimates for labor and materials costs, late penalties, contingency plans for delays caused by weather or materials issues, commercial insurance information, any warranties or guarantees for service, and payment details. Having everything in writing helps property owners if there is any kind of liability issue, dispute, or delay, especially if the issue has to be escalated to a lawsuit in claims court.
Having property damage after a major storm can be traumatic enough, but being scammed by crooked contractors can devastate a family or business owner even more. It's important to protect yourself or your business by making smart choices about repairs and renovations, and avoid the contractors offering quick services at prices too good to be true. Aegis can also help homeowners and business owners protect their property with reliable, top quality Personal and Commercial Insurance solutions, all at competitive rates. Give our Aegis team a call at 713-850-7622 for more information about our Homeowners, Renter's, or Commercial Insurance to ensure you always have the protection and help you need if disaster strikes.