It is important that homeowners be cautious of insurance scams during and after a major storm. As people are looking for help rebuilding, there will be those who will attempt to take advantage of the situation. A homeowner may be asked by a contractor to sign an agreement whereby the homeowner assigns all rights and benefits under his insurance policy to the contractor. The homeowner usually does not even realize he has done this, or doesn’t understand the implications of it.
If you are recovering from a disaster, here are some things to think about:
Prevent Contractor Scams
- Make sure all contractors are licensed and insured.
- Check with your insurer to see if the contractor has provided work for them in the past.
- Never pay in cash.
- Always ask for a quote in writing.
- If you must, only pay a small amount up front, but also use a credit card so you can challenge payment if needed.
- Get referrals and check references.
- Never sign a blank agreement.
- Make sure the contractor is licensed in Texas.
Some people receive fraudulent computer calls saying their home insurance has been cancelled and they need to make immediate payment by credit card. A contractor and insurer can always discuss the scope of work and a reasonable price for that work. In most claims, the contractor and adjuster reach an agreement as to the cost of repairing damaged property before a contract to perform the work is signed. Without an assignment, the homeowner can stay advised of these discussions.
Also, be aware of people who say they are adjusters representing your insurance company and you need to pay your deductible now in order to have your claims covered. Call our office if you have any questions regarding your claims.
Charity Scams
Many scammers are out asking you to donate money to their charity. Make sure you donate to legitimate organizations. Donate money to charities you know, such as The Red Cross or your local church.