Beware of Scammers: Essential Tips for Columbia, S.C. Homeowners After a Disaster

Beware of Scammers in Columbia, S.C.: Essential Tips for Homeowners After a Disaster

Columbia, S.C. — We all know that after a disaster strikes, the last thing on your mind should be figuring out who to trust for home repairs. Unfortunately, where there’s misfortune, there often lurks a few fraudsters ready to take advantage of vulnerable folks. That’s why we want to share some incredibly helpful tips to help keep you and your hard-earned money safe.

Do Your Homework on Contractors

First things first, when it comes to hiring someone to fix your home, you must ensure they are legitimate. This isn’t just about interviewing them — it’s about doing some serious homework. Check online reviews and search for any complaints on the Better Business Bureau website. A good contractor should have glowing references, so don’t hesitate to ask for those either. And let’s be clear: FEMA does not endorse or certify contractors, so steer clear of anyone claiming they’re FEMA-certified — they’re likely pulling a fast one.

Spot the Red Flags

If a contractor shows up at your door, trying to scare you into a hasty decision, that’s a huge red flag. A trustworthy business never pressures you to make quick choices. Legitimate contractors might suggest a timeline, but they won’t rush you. And please remember, never pay everything upfront! Instead, go for a payment plan and use checks or credit cards, leaving a record of each payment. Don’t forget to ask for invoices and receipts for all transactions.

Get Multiple Estimates

When deciding who to hire, don’t settle for the first contractor you meet. Get estimates from at least three different sources. If one estimate is significantly lower than the others, it could be too good to be true. Check that all the quotes include similar tasks and repairs, and always verify references.

Make It Official with a Written Contract

Once you’ve chosen a contractor, it’s time to put everything in writing. A solid contract should outline every task, repair, start and finish dates, and the costs associated with materials and labor. Never, and we mean never, sign a blank contract. You wouldn’t want a contractor to fill in extra charges later after the work is done.

Understand Assignment of Benefits (AOB)

Another important thing to be cautious about is the Assignment of Benefits (AOB). This is when a policyholder allows a third party, like a contractor or a public adjuster, to act on their behalf. This could mean the contractor gets direct payment from your insurance company rather than you. Make sure you understand what that entails before signing anything.

Gather Key Contractor Information

Before you hire anyone, always check for these essential documents:

• A copy of the contractor’s identification showing their name and business name.
• A valid copy of the contractor’s business license — don’t let it be expired.
• A copy of their proof of liability insurance, details of which should include the company’s name and policy number. Call the insurance company to verify this coverage.
• A copy of the contractor’s proof of workers’ compensation insurance.

Reach Out for Help

If you ever have doubts or concerns, don’t hesitate to contact the South Carolina Department of Insurance’s Office of Consumer Services at 803-737-6180. They can provide information and valuable tips on navigating the claims process. Flood insurance policyholders can also report claims by reaching out to their agent or calling 1-800-427-4219 for NFIP guidance.

Be Vigilant About Fraud

Finally, if you happen to stumble upon any suspicious activity or feel that you’ve encountered fraud, you can report it by calling 1-800-95-FRAUD. Staying informed and cautious is your best defense against these unscrupulous characters trying to make a quick buck off of those in need.

Remember, staying vigilant and informed is the key to protecting yourself. By following these tips, you can help ensure that you’re getting the help you need from a trustworthy contractor.