Repairing Your Home, Sweet Home, After a Natural Disaster

Homeowners need to keep their eyes open when dealing with some of the contractors who solicit their business after a natural disaster.

By Deborah Boone, NCPC Staff

It’s tornado season, hurricane season, wildfire season, and heavy rains have caused massive destruction in Iowa and other parts of the Midwest.

But now the disaster has passed. You and your family have survived. The local authorities have given you permission to return home to begin repairs to your property. How do you avoid a disaster of another kind—being scammed by fraudulent contractors? The fact is that out there among the legitimate small business people who often do this type of work there are heartless criminals looking for any opportunity to defraud you.

Missouri Attorney General Jay Nixon was quoted on May 7, 2008, in The Kansas City Star as warning residents about fly-by-night repair crews that cruise neighborhoods and attempt to negotiate quick deals with desperate homeowners. “Consumers need to know there are people out there who want to take advantage of their misfortune,” Nixon said.

What can you do to locate qualified repair persons? Officials say a good place for homeowners to start a search for repair work is in the Yellow Pages, which is an indicator of stability, or with an insurance adjuster, who can provide a list of qualified contractors and provide other types of advice. You can also check with family and friends for referrals. Homeowners should also deal only with licensed, bonded, and insured contractors.

Some warning signs of fraudulent contractors include the following:

• Solicitors show up in unmarked vehicle(s), have no identification badge or company uniform, and display business cards containing only a post office box address and no phone number. If there is a phone number, call the number (block your own telephone number first).
• Solicitors request advance fees and refuse to sign contracts or cannot provide references. If references are provided, call them. Then check the company out with your local Better Business Bureau (www.bbb.org) or with your local government to see if it has had complaints lodged against it.
• Solicitors discover many urgent problems, often ones you didn’t know you had, and state that they can fix each problem.

Experts recommend reviewing proof of liability coverage and getting a signed mechanic’s lien waiver. This is important because suppliers and subcontractors have a right to file a lien against you if a general contractor you hired fails to pay them. They also say to make sure to get at least three estimates and to get all contracts in writing, listing the work to be done and the costs. Many qualified contractors require a deposit or installment payment once a contract has been signed. But make full payment only when the terms of the contract have been met. This is a standard practice. Finally, make the check payable to the contracting company, not an individual. Experts also say to watch out for businesses charging unreasonable fees. Many states prohibit price gouging during disasters. Homeowners can report complaints to their state’s attorney general. (Go to www.naag.org, the website of the National Association of Attorneys General, to find out how to contact yours.)

Once you have identified a qualified contractor with good references and reasonable prices, request that the actual contractor or contractor’s employees (not subcontractors) do the work. If subcontractors must do the work, follow the steps previously listed, and be sure to get a copy of the subcontractor’s liability coverage prior to the start of work.

As you sit back in your easy chair in your newly repaired home, you realize things will not be exactly as they were before the disaster. But for now, you feel as if your patience and careful planning have been rewarded. Be it ever so humble, there’s no place like home.

Resources

• Fairfax County, VA, Government, www.fairfaxcounty.gov/emergency
• Federal Trade Commission, https://rn.ftc.gov/pls/dod/wsolcq$.startup?Z_ORG_CODE=PU01