We are two months into the six month hurricane season and – knock on wood – we’ve had uneventful storms, despite the recent passing of the sixth named storm. That being said, September tends to be the busiest and most dangerous month for hurricane season, so we can’t let down our guards. Forecasters have raised the number of named storms from 19 to 20 for the 2020 season and we still have a long way to go before the end of November. We will eventually face a hurricane somewhere along the eastern or gulf coasts.
So, while we continue to prepare and wait, take time to think about how you will approach clean up and repairs after a storm. When a storm passes through, it can leave a mess behind, as well as repairs that need to be performed on your home. Don’t be taken in by repair scams because they can leave you out of money and still in need of repairs. Learn how to recognize common red flags of fraudulent contractors, so you can avoid home repair scams. Here are some possible signs of a scam contractor:
- Door-to-door solicitations
- Hesitant to give quotes or estimates in writing
- States they have materials left over from a finished job in the neighborhood
- Accepts only cash or asks you to pay the job upfront before work begins
- Wants you to apply for the building permits
- Urges an immediate decision
- Offers guarantees that are too good to be true
- Asks/demands you to finance work through their own lender
- Displays no local business phone number & is slow to provide license/insurance documentation
A reputable contractor is required to display their license numbers(s) and local business phone number on their business cards, vehicles, contracts and any other business related materials. If they do not have a local phone number or only an 800 number, they are most likely “storm chasers” and are not licensed to work in your area. Don’t take their work for it if they say “look me up on Sunbiz”. That will only show that they have created a business name, it does not mean they are a legitimately licensed and insured contractor. An accredited contractor will gladly provide copies of licenses and proof of liability/workers comp insurance documentation. It is also reasonable to verify those licenses with DBPR (in Florida) or your county/state licensing boards. Here are some suggestions to follow when determining which contractor to work with:
- Get endorsements from family, neighbors, friends or your insurance agent.
- Obtain estimates, for the exact job specifics, from several contractors, in writing. find out what their estimation costs are, before asking them to do an estimate of the work.
- Do comparisons of at least three contractors and verify that they are all licensed and insured. These are generally able to be checked online. In Florida, you can verify licenses through DBPR.
- See if there are complaints filed against any contractors you have in mind. This can be checked through the BBB or DBPR.
- Request copies of your chosen contractors Certificates of Insurance (COI) for general liability and worker’s comp, as well as their state and county licenses. Make sure you ask for references from previous jobs in your area and follow up with them.
- Get a written contract that includes the following: start/finish dates, oral promises made by contractor (warranties, guarantees), cost of materials, labor, fees and a payment schedule.
- Review and understand the contract before signing. Ask for clarification for things you don’t understand and do not be pushed into signing if anything makes you wary. NEVER pay for the entire job upfront and don’t necessarily choose the lowest bid – it may end up costing you quality of work and more money in the long run.
- Before you sign, have a friend look over the contract with you to see if there is anything you missed.
- Once you and the contractor have signed the contract – get a copy. Also, obtain a lien waiver before work is started. It basically states that workers and material suppliers will not ask for money after the contractor has been paid. Do not sign a consent of owner statement, as this will make you liable to cover the costs of labor and materials that the contractor neglects to pay.
- It is customary to pay a deposit of the total amount before work commences. Do not pay the final payment on the contract until work is complete and you are satisfied with the job – don’t pay for work that is unfinished or unacceptable. Payments should only be made by check or credit card – NEVER pay cash or sign over your insurance check.
The best way to protect yourself is to always confirm licenses and insurance, get trusted recommendations, and go with your gut. Don’t be bullied or pushed into a quick decision – there are many options and reputable contractors that understand the financial decisions that go into repairing damage to your biggest life investment. Local contractors with proven track records are the way to go.
Sources: Twyla Sketchley – Avoiding Hurricane Repair Scams – Blog post 7/17/16 & How to Protect Yourself from Insurance & Repair Scams After a Hurricane – Blog post 7/25/18
Professional Restoration Services of Tampa Bay 