4 Home Insurance Contractor Scams To Avoid
With mother nature wreaking havoc in the US, more people are setting up contractor scams to try and take advantage of people in need. These contractors pose as professionals to make money off of poor home improvements and construction work.
These people are mostly unlicensed and are not knowledgeable enough to do any kind of work around your home—but they won’t tell you that. What you need to do is to be careful and not fall for their scams.
Here are some clues to help you identify a potential scammer and protect yourself.
Using Cheap Materials to Cut Cost
Just because you hired a licensed contractor doesn’t mean they can’t run a scam on you. There are shady professionals who use low-quality materials on home improvement or construction to cut costs. These materials are so inferior that the work should be done again after a few months. A good example is using wood that is not fit to handle your area’s weather or wood that is not recommended for construction jobs.
What shady contractors do is that they look for an area that is difficult for homeowners to inspect and use low-quality materials there. When you finally get to inspect this area, it already needs another repair job.
Larger Down Payments
A typical contractor would ask you for a reasonable down payment in order to buy material and cover labor costs for the first few weeks. A scammer, on the other hand, will ask you for a very large down payment and then disappear once you give them the money. If you are not very well-aware of how much a “normal” down payment should be, you should know that it should not exceed 20% of the total project cost.
If your contractor is asking you for a 50% down payment, this is already a red flag and you need to check his ID and license.
Creating Damages in Your Home
Some contractors would do anything to make some cash. In fact, they are ready to lie for it. During hail season, there are plenty of contractors that perform roofing scams on unfortunate homeowners. What they do is they take their screwdriver or their hammer to make phony damage marks on your roof. Fortunately, insurance adjusters can tell if the damages on your roof are made by mother nature or by man.
Willing to Pay Your Deductible
If your contractor tells you that they are willing to pay your policy deductible if you hire them for the job, it’s an instant red flag. There are also contractors who will claim to know your insurer and will tell you that they can talk to them for you. If someone that you don’t know goes to your home and are claiming to be a representative of your insurance company, ask for identification first.
With the increasing number of scammers today, you can only count on a trusted insurance company to help you out. At Sameday Insurance Services Inc., we take pride in making sure our clients are well-protected at prices they can afford. To learn more about how we can help you please contact our agency at (888) 750-9775 or Click Here to request a free quote.