AAA Wisconsin Offers Safety Tips for Contractor Fraud Awareness Week May 23rd-27th
Sunday, May 22nd, 2022 -- 10:01 AM
Hurricanes, wildfires, floods, tornadoes, hailstorms, experiencing a disaster may be impossible to avoid.
Yet as homeowners deal with the aftermath of a catastrophe, if they aren’t careful, they could be victimized by dishonest contractors. AAA – The Auto Club Group is partnering with the National Insurance Crime Bureau for Contractor Fraud Awareness Week, which runs May 23-27.
This is designed to help property owners avoid becoming a victim of deceptive contractors. Dishonest contractors may try to pocket more profit by accepting payment then never completing (or even showing up for) the job and using inferior materials or performing shoddy work that’s not up to code.
Some tips to avoid fraud after a catastrophe include working with your insurance provider:
- Call your insurance company first if you think you might have damage from a storm or other disaster;
- Make sure you review and understand all documents sent to your insurer;
- Never let a contractor discourage you from contacting your insurance company;
- Be on the lookout for people calling and saying they are with a national carrier.
Do not provide ANY personal information over the phone without them first confirming a claim number. If something sounds fishy, report it to your insurance company immediately; and note that insurance carriers will never ask you to pay your deductible up front or over the phone.
When hiring a contractor:
- Get more than one estimate. Never let a contractor pressure you into hiring them;
- Work with only licensed and insured contractors;
- Request references and check them;
- And ask to see the salesperson’s driver’s license, write down the license number and their vehicle’s license plate number.
When it’s time to get the work done:
- Get contract terms in writing. Cost, time schedules, payment schedules, guarantees, work to be done, and other expectations should be detailed;
- Never sign a contract with blanks;
- Never pay a contractor in full or sign a completion certificate until the work is finished, and ensure reconstruction is up to current code.
If you believe you’ve been approached by an unlicensed contractor or adjuster, or have been encouraged to fabricate an insurance claim, contact your insurance company or NICB immediately. Anyone with information concerning insurance fraud can report it anonymously.
Feel free to contact us with questions and/or comments.