Contractor fraud might be rampant within the aftermath of a pure catastrophe
The Insurance coverage Data Institute (Triple-I) and the Nationwide Insurance coverage Crime Bureau (NICB) are marking this week as Contractor Fraud Consciousness Week with a purpose to spotlight how owners can defend themselves from dishonest contractors.
“House contractor fraud wants fixing, as solely too many shoppers fall sufferer to shoddy work that places what’s oftentimes their best funding at elevated danger,” stated Sean Kevelighan, CEO of Triple-I. “The Insurance coverage Data Institute is proud to affix forces with the Nationwide Insurance coverage Crime Bureau to coach owners in regards to the widespread indicators of fraud and to supply steps owners can take to verify they’re hiring a good contractor.”
In keeping with Triple-I, post-disaster contractor fraud scams typically begin with an unsolicited go to from a contractor who claims to need to assist victims rebuild. Dishonest contractors additionally ceaselessly use flyers to promote their companies. Nonetheless, there are a number of methods owners can inspect a contractor’s credentials and fame.
“Catastrophic occasions negatively impression hundreds of thousands of Individuals yearly,” stated David Glawe, CEO of NICB. “From hurricanes to floods and the whole lot in between, these occasions are sometimes scary and life-changing. However what makes this impression worse is what occurs afterwards, as insurance coverage fraud targets areas affected by these pure disasters. Usually earlier than flood waters recede or rescue operations are full, dishonest contractors prey upon people who’re at their most susceptible. Earlier than hiring anybody, name your insurance coverage firm first. In case you didn’t request it, then you need to reject it.”
Triple-I and NICB had the next ideas for owners searching for respected contractors:
- Get at the least three written estimates and evaluate them: Within the aftermath of a pure disaster, contractors are in excessive demand. The COVID-19 pandemic and related provide chain disruptions have additionally put upward strain on labor and materials prices
- Test credentials, together with licenses, references and insurance coverage: Respected contractors received’t balk when requested to supply these
- Guarantee your contract contains estimated development schedules and costs for labor and supplies: If a contractor calls for full fee up entrance, the home-owner must be hesitant about doing enterprise with them. Nonetheless, it’s not unusual for contractors to request partial fee up entrance with a purpose to get hold of vital provides for the job
- Contact your insurer to make sure your coverage is updated: If a contractor provides recommendation on what your owners’ coverage covers, get it double-checked by an insurance coverage skilled affiliated together with your insurer
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