Following Winter Storm Uri, the Texas Department of Insurance (TDI) issued a warning to Texans about contracting scams that commonly occur after a natural disaster. "We all want our homes repaired quickly, but take the time to check out a contractor," said Doug Slape, TDI's chief deputy commissioner, in a statement. "A few quick calls can save you money and help you avoid a scam." Catastrophe season is around the corner, and insureds across the U.S. must be vigilant when working with contractors performing repairs following a hurricane, tornado, flood or another major weather event. Click through the slideshow above for four common signs of a contracting scam.
How to select a reputable contractor
TDI offers these tips for insureds to avoid scams when hiring a contractor:
- Make sure bids are in writing and include the company's name, phone number and address. When possible, use local companies.
- Call references and look up the company's listing on the Better Business Bureau.
- Ask the contractor for their certificate of insurance and bond certification, and call the companies listed to verify coverage.
- Check for complaints against the company online. State resources, such as the Texas State Board of Plumbing Examiners, the Texas Department of Licensing and Regulation, and similar organizations in other states can provide licensing information and more.
- Insureds should ask the contractor to notify them when they contact insurance companies about additional work or costs.
- Pay with a check or credit card instead of cash to create a record of payments to the contractor.
- Always report possible contracting scams to local law enforcement.
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Heather A. Turner
Heather A. Turner is the managing editor of ALM's NU Property & Casualty Group. She can be reached at [email protected].
