It is once again hurricane season, and Florida homeowners should begin preparing for a large storm if they haven’t already. Making an action plan, purchasing necessities, and storing a backup generator – these can help you ride out the storm in comfort. Florida homeowners also need to ensure their insurance policies adequately cover the value of their house. However, should a hurricane cause damage, the contractor you hire after the fact is just as critical as your policy. Unfortunately, contractors who take advantage of homeowners after Florida storms are common, and estimates by the Coalition Against Insurance Fraud estimate fraudsters steal over 300 billion dollars a year through insurance fraud. Today, we will focus on how to protect yourself from insurance fraud following a hurricane in Florida.
Basics of Contractor and Insurance Fraud Following Hurricanes
Imagine this – a category 5 hurricane makes landfall in Florida and leaves your house unlivable, with crumbling walls, patchy roof tiles, and water damage throughout the entirety of the property. It can seem like a godsend if someone shows up at your door with an offer to quickly get to work to make your house whole again. However, this might be the start of a scam that jeopardizes your future and leaves you footing a large bill.
Reputable companies will never go door-to-door to solicit work from distraught homeowners following a massive disaster. However, unlicensed and uninsured contractors know this might be their only opportunity to score a big payday. Here are some tips to help you determine if the company offering to help you after a hurricane is worthy of your business.
Tip #1 – Check Their License and Insurance Status
We can’t stress this enough – hiring a contractor for home repairs that lacks insurance and isn’t licensed in Florida can be disastrous. Shoddy work from these companies will not be protected by any insurance or warranty, and insurance companies that give you a payout following a natural disaster may reject your claim if they determine that unlicensed and uninsured contractors completed work on your property. If someone is injured on your property during the repairs, you may be liable if the company is not insured against it. (Check Florida business license status here.)
Tip #2 – Don’t Sign Anything Under Duress
Fraudulent contractors rely on the fact that people whose houses sustained heavy damage during a hurricane might not have the luxury of reading contracts thoroughly or getting second opinions. If someone is pressuring you to sign a contract that doesn’t accurately explain the scope of the work, you should think twice about hiring them. A fraudster will take your money, do the minimum amount of work required to make the job appear completed, and hope you don’t have the resources to track them down and fight for a refund.
Tip #3 – Get Everything In Writing
Along with a contract, keep documentation regarding quotes, insurance and licensing, and payments in order to send this information to your insurance provider later. You may have opportunities to go after a shoddy contractor if your insurance provider lends a helping hand using their resources on your behalf.
A disastrous hurricane can understandably leave you stressed and unsure about the future. Always remember that shaving a few weeks of time off of your home repairs is never worth it if the repairs are not a long-lasting, quality service.
Anderson & Associates Insurance Group provides professional home, life, auto, and business insurance to Manatee residents. If you need to prepare for the upcoming hurricane season, contact us today to speak to one of your experienced associates.
