The Problem with Post-Storm Repair Scams
When a big storm hits your neighborhood, dealing with damage to your home can be stressful enough. But there's another problem you might not expect: scammers who show up at your door pretending to be honest contractors.
These fake contractors often appear within hours after a storm, offering quick repairs at low prices. Unfortunately, these deals are usually too good to be true.
Home repair scams happen all year long. In 2024, the Federal Trade Commission (FTC) received nearly 82,000 complaints about them. A survey also found that about 1 in 10 Americans were tricked by a contractor scam in 2023. However, these scams are most common right after bad weather, when homeowners feel rushed to get repairs done.
Why Storms Make Scams Worse
After a storm, there's a lot of demand for repairs. Good, honest contractors get booked up fast. This leaves homeowners feeling desperate, which makes them more likely to hire someone quickly without checking their background.
Scammers know this. They take advantage of people who are stressed and in a hurry. According to industry reports, after recent winter storms, many unlicensed workers showed up in damaged neighborhoods offering low prices and fast work.
This winter has been especially bad for storms. At least six major storms have hit the U.S. since late November. One storm alone, called Winter Storm Fern, caused an estimated $6.7 billion in damage across more than 30 states.
Warning Signs to Watch For
Prices That Are Too Low
If most contractors give you a price between $45,000 and $50,000, but one offers to do the job for $25,000, that should raise a red flag. Construction expert Paul Dashevsky, who has over 30 years of experience, says you should ask yourself how they can offer such a low price.
The answer is usually bad news: they might be using leftover materials from other jobs, or their workers aren't properly trained. In some cases, they might not plan to finish the job at all.
Pushy Sales Tactics
Scammers often use pressure to get you to make quick decisions. They might say things like:
- "Your roof could collapse before the next storm!"
- "This price is only good today!"
- "We just finished working on your neighbor's house."
These tactics are designed to make you feel like you have to decide right away. But making a fast decision on a major purchase is usually a mistake.
Asking for Too Much Money Upfront
Dishonest contractors often ask for a large payment before they start any work. Some states have laws limiting how much a contractor can ask for upfront. For example, in California, contractors can only ask for the smaller of either $1,000 or 10% of the total cost.
Shady contractors may ignore these rules and ask for as much as 50% of the estimated cost before doing any work.
Insurance Fraud Schemes
Some scammers might even suggest filing a false insurance claim to get more money than the damage is actually worth. They might even cause more damage on purpose to increase the claim amount.
This is illegal and can get you in serious trouble. Even if you don't get caught, do you really want to work with someone who suggests breaking the law?
How to Protect Yourself
Slow Down
The best way to avoid being scammed is to take your time. Don't let anyone pressure you into making a quick decision.
Call Your Insurance Company First
Before letting anyone inspect your home, call your insurance company. They will often cover emergency repairs right away, which gives you time to properly check out a contractor before hiring them for the bigger job.
Check the Contractor's License
Before agreeing to any work, make sure the contractor is licensed. You can do this through your state's licensing board. Look for:
- Their license number
- The owner's name
- How long they've been in business
- Whether they have insurance (workers' compensation and general liability)
Look at Reviews Carefully
Online reviews can be helpful, but be careful. Some reviews might be fake, or they might be overly positive or negative. Try to find real references and ask them questions like:
- How was your experience with this contractor?
- What was the original price, and did it change?
- Did they finish the job on time?
Use Traceable Payment Methods
Never pay with cash, even if the contractor offers you a discount. Scammers might say, "Pay cash and we can both avoid taxes." This is a bad idea and leaves you with no proof of payment.
Always use a payment method that creates a paper trail, like a check or credit card.
Trust Your Gut
Pay attention to how the contractor communicates with you. If they're hard to reach, don't return calls, or act unprofessionally, these are warning signs. If they treat you poorly before you hire them, they'll likely treat you even worse after you do.
The Bottom Line
After a storm, it's natural to want to fix your home as quickly as possible. But rushing into a decision can lead to bigger problems.
Take your time, do your research, and don't let anyone pressure you into hiring them on the spot. By being careful, you can avoid falling victim to a home repair scam and find a trustworthy contractor to fix your home the right way.4
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Read more: Select U.S. Families Receiving $1,000 Monthly Payments Through New Program
