How To Save Money On Home Improvements After A Disaster

“I was just in the neighborhood…”

These words are often the beginning of a very common scam.

That’s a tip off that this isn’t a save money opportunity.

If your house has been damaged in a fire, flood, or other natural disaster, you could be a prime target, to lose money.

Phony contractors make big claims and charge big bucks to repair your home.

They may demand a large deposit up front, then start the job and never finish it.

They may use poor quality material, perform shoddy work, or fail to meet building codes.

People are often so consumed with the devastation that has occurred in their lives that they are more vulnerable to disaster fraud.

Learn the Signs of Fraud to Save Money

If you educate yourself against dishonest contractors now, you can avoid becoming a victim of disaster fraud.

To save money, beware of contractors who:

• Go door-to-door looking for customers (and without business cards), drive an unmarked van or truck, or have out-of-state license plates.

• Ask you to pay the entire cost of the job up front.

• Encourage you to spend a lot of money on temporary repairs.

• Ask you to obtain the permit for any work. It could mean the contractor does not have a license.

• You can only reach them through an answering service.

• Quote you a price that’s vastly different from estimates from other contractors.

• Make outrageous promises and pressure you for a quick-decision.

Know Who to Trust to Save Money

Follow these tips for protecting yourself and hiring an honest, reliable contractor:

• Ask your insurance agent, friends, and neighbors who they recommend.

• Write down the salesperson’s license plate and driver’s license numbers.

• Ask the contractor for proof of his insurance coverage and any licenses he need to perform the repairs.

• Ask for a list of recent customers, then call them and find out if they were satisfied with the work.

• Call your local Better Business Bureau or Home Builders Association to find out if a contractor has complaints against them.

• Get estimates in writing from at least three contractors. These should include all the labor, materials, and verbal promises the contractor made.

When you are ready to sign a contract, make sure it includes all work details, warranties, time schedule, the quality of building materials, and cost.

Fill in all the blanks in the contract. Never leave empty spaces for someone to fill out later.

Pay by credit card or check, never cash. Checks offer the most protection, because you can stop payment if you have a dispute with the contractor.

Pay in installments. Put as little money down as you can, and only make the last payment when you are completely happy with the work.

Tell your insurance agent if an unlicensed or fraudulent contractor approaches you.

Disaster fraud doesn’t have to ruin your life; there are ways you can still save money, by not being defrauded.

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