Overview
Extreme storms and other severe weather events have increased the need for home repairs, and dishonest contractors sometimes exploit that demand. Door-to-door solicitors, high-pressure offers to cover your deductible, and promises of quick work can signal a scam. Protecting your home and finances starts with understanding common schemes and taking steps before any work begins.
Key takeaways
- Never pay a large down payment or sign a contract without references and a written scope of work.
- Document storm damage carefully and contact your insurer before hiring someone to start major repairs.
- Get multiple written estimates, check licensing and reviews, and avoid contractors who pressure you for immediate decisions.
How it works
Fraudulent contractors often appear right after a storm, offering fast repairs and asking for cash up front. Some create new damage or bill for work they never completed. Others try to take control of your insurance claim or promise to handle the paperwork for you.
If you need guidance on filing a claim or understanding how your policy responds to contractor work, see Understanding Homeowners Insurance Claims for a clear overview of claim responsibilities and steps to protect yourself.
What it may cover (and what it may not)
Your homeowners policy usually covers sudden and accidental storm damage, subject to policy limits and deductibles. However, insurers may deny coverage for shoddy repairs carried out without proper permits or for damage created after the initial event.
Work done by an uninsured or unlicensed contractor can leave you responsible for additional costs, so confirm coverage with your insurer before hiring a contractor to start major repairs.
Common mistakes to avoid
- Disappearing down payments - Avoid contractors who demand a large upfront payment and then vanish after doing little or no work.
- Doing shoddy work - Low-quality materials and rushed repairs often require redoing the job at your expense.
- Creating "phantom damage" - Some contractors fake or exaggerate damage to increase the bill.
- Worsening damage - Unethical workers may enlarge holes or remove undamaged materials to justify higher charges.
- Billing for phantom work - Watch for invoices charging for tasks never completed.
- Offering to pay your deductible - This is a common lure and may be illegal or lead to inflated repair costs.
- Acting as a go-between with your insurer - Do not relinquish control of your claim; always communicate directly with your insurance company.
Questions to ask an agent
- Will this damage be covered under my policy and what documentation do you need?
- Do I need to get multiple estimates or obtain permits before repairs begin?
- What steps should I take if a contractor pressures me or leaves incomplete work?
Next steps
Before hiring anyone, document damage with photos and notes, get at least two written estimates, verify licenses and insurance, and check references. Keep all receipts and written agreements in case you need to dispute the work with your insurer.
For information about insurance options related to repair and construction projects, consult Insurance Options for Construction Projects. If you want help connecting with licensed professionals through our quoting tool, you can ask an agent to review your situation.
Frequently Asked Questions
How can I verify a contractor is legitimate?
Ask for a license number, proof of insurance, local references, and a written contract; then check state licensing boards and online reviews.
Should I contact my insurance company before repairs start?
Yes — notify your insurer promptly, document the damage, and follow their guidance before authorizing major repairs.
What if a contractor offers to cover my deductible?
Be cautious: this can be a red flag for fraud and may violate policy terms; discuss it with your insurer first.
How do I handle shoddy or incomplete work?
Document the problems, contact the contractor in writing, and if unresolved, report the issue to your state consumer protection agency and your insurer.