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How can I avoid scams after a disaster?
If your home was
destroyed by a hurricane, wildfire or other disaster, be cautious.
Unfortunately, there are dishonest service providers that prey on
disaster victims. They know that people who have lost their homes and
valuables may not be thinking clearly. If you have suffered this type
of loss, don’t make any rash decisions. Talk to your insurance agent,
who may recommend service providers in your area.
Here are some basic guidelines for hiring service providers:
Roofers and builders
- Don't be rushed into signing a
contract with any company. Instead, collect business cards and get
written estimates for the proposed job.
- Beware of building contractors that
encourage you to spend a lot of money on temporary repairs. Payments
for temporary repairs are covered as part of the total settlement. If
you pay a contractor a large sum for a temporary repair job, you may
not have enough money for permanent repairs. In most cases, you should
be able to make the temporary repairs yourself. Ask your insurance
agent. And remember to keep receipts.
- Investigate the track record of any
roofer, builder or contractor that you consider hiring. Look for
professionals that have a solid reputation in your community. You can
call your Better Business Bureau for help. Also, get references and
never give anyone a deposit until after you have thoroughly researched
their background.
A common fraud scheme is for a so-called "contractor" to convince a
homeowner that a large deposit must be provided before repair work can
begin. Frequently, the job will be started, but not completed.
Unfortunately, these con artists are never seen or heard from again.
Public adjusters and attorneys
- Don't make any rash decisions about
hiring someone to handle your claim. Be especially wary of individuals
who go door-to-door soliciting business in the aftermath of a
catastrophe. Most importantly, don't let anyone scare you into signing
a contract. You don't want to be victimized by someone who comes into
town, hoping to make a fast buck. You could end up forfeiting a
significant portion of your insurance dollars.
- Before hiring a public adjuster or
an attorney, try to settle your claim directly with your insurance
company. Your insurer provides an adjuster at no charge to you. Ask
your insurance agent or company representative to help you with your
claim and don't be afraid to ask questions. If you decide to work
directly with your insurer, you still have the right to hire a
third-party professional to help you.
- If your claim is complicated and
you want to hire a public adjuster or attorney, make sure that person
is qualified to handle your case. Ask your friends, relatives or
business associates for the names of well-regarded professionals in
your community. Also, call your state department of insurance
regarding a public adjuster, and your state or county bar association
about a prospective attorney.
- Understand that you will have to
pay a public adjuster 15 percent and an attorney as much as 30 percent
of your total claim settlement.
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