After a storm, construction scams are as predictable as mold growing on a warm, wet dark place, but they can be easily avoided by taking a few simple precautions.
Fortunately, Citrus County was spared from significant impacts of the recent hurricane, but with the storm in the daily news headlines, unscrupulous individuals will see the opportunity to make a fast buck with construction scams.
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State and local officials warn that some of the warning signs that you are dealing with possibly fraudulent contractors are door-to-door solicitation, workers arriving in unmarked vehicles, have a post office or temporary address, claim they are from out of the area and are here doing work for hurricane victims or claim they are doing work in the area and can give you a special deal on a repair.
Most reputable contractors get business from advertisements or referrals, have permanent addresses and don’t generally offer special deals because they have materials left over from another job.
Another big red flag is if a contractor says a permit is not needed for work, or if they ask the homeowner to pull the permit. Reputable contractors obtain their own permits and will pull a permit for any work that requires one, such as reroofing or major home repairs.
Authorities also warn about signing an “assignment of benefits” form in which the homeowner assigns to the contractor any payment from an insurance company.
One of the most common assignment of benefits scams is the “we’ll get you a new roof and the insurance company will pay for it.” This is tempting to a homeowner, even when it appears to the homeowner that the roof seems OK.
Many experts in the Florida insurance market believe this has been a significant reason for some of the troubles in the marketplace. Here’s how it works.
The contractor asks the customer to sign an “assignment of benefits” form giving the roofing contractor the right to perform the work and to deal directly with the insurance company.
Then the roofing contractor bills the insurance company often when work was not done or if the roof damage did not justify the work. If the insurance company balks, the contractor sues and the insurance company has to make a decision of whether paying the often bogus roofing claim or spending money fighting the lawsuit.
While disasters bring out the scammers in force, there are unscrupulous people working year-round to take money out of your pocket. Working with local licensed and insured contractors, insisting on proper bids, and avoiding assignment of benefits agreements are important steps you can take every time you solicit work to be done on your home or business.
