BBB warns of home repair scams following Hurricane Sandy

In the wake of Hurricane Sandy, which left more than 8 million people without power and caused an estimated $50 billion in damages so far, the Better Business Bureau (BBB) has issued a warning about widespread home repair scams occurring throughout the east coast.

Prior to the storm, the BBB warned the public not to “let disaster stick twice” as many contractors may go door-to-door trying to drum up work. The BBB calls this group “storm chasers.”

“Storm chasers, door-to-door home repair salesmen and water damage companies often peddle dubious deals that can cost homeowners thousands of dollars and create serious headaches,” the organization said. “Storm chasers are individuals that try and get work, but they end up ripping consumers off by either not delivering on the services they promise to offer, or asking for payment upfront and then disappearing.”

BBB offers the following tips to homeowners who suffer auto and property damage in the aftermath of Hurricane Sandy:

• Check with your insurance company about policy coverage and specific filing requirements. Save all receipts, including those for food, temporary lodging, or other expenses that may be covered under your policy.
• Stay calm. Although you may be anxious to get things back to normal, avoid letting your emotions get the better of you. Don’t be pressured into making an immediate decision with a long-term impact. Be pro-active in selecting a company and not reactive to sales solicitations. Make temporary repairs if necessary.
• Shop around. For major repairs, take time to get at least 3-4 estimates based on the same specifications and materials. Check references, verify licensing and registration, and read BBB Business Reviews. There are tens of thousands of home improvement and home repair contractors that are BBB Accredited Businesses and are committed to fair, honest and transparent business dealings with their customers.
• If it sounds too good to be true, it probably is. Be wary of door-to-door workers who claim to have left-over materials from a nearby job or who do not have a permanent place of business. If sales people go door-to-door, check to see if your community requires them to have solicitation permits. Be leery if a worker shows up on your doorstep to announce that your home is unsafe. If you are concerned about possible structural damage in your home, have an engineer, architect or building official inspect it.
• Get everything in writing. Require a written contract with anyone you hire. It should specify the work to be done, the materials to be used, and the price breakdown for both labor and materials. Any promises made verbally should be written into the contract, including warranties on materials or labor. Be sure their name, address, license number (if applicable) and phone number are included in the contract, along with a start and end date for the work. Once you have found a contractor, request proof of a current insurance certificate covering workman’s compensation, property damage and personal liability.
• Never pay in full in advance, and do not pay cash. While many companies may ask for a deposit, BBB suggests that no more than one-third of the job be paid upfront. Be sure the contract specifies the schedule for releasing payments to the contractor. Before making the final payment, ask the contractor to show proof that all subcontractors have been paid (if not, you could be liable).

For more tips and for a list of BBB Accredited Businesses in your area, visit the BBB website.