The aftermath of a hurricane can often bring out the best in people, as strangers reach out to help others in need. Unfortunately, it also brings out nefarious contractors trying to take advantage of people whose property was damaged during the storm. Better Business Bureau Serving Eastern Carolinas (BBB) is warning homeowners affected by this recent storm to beware of “fly-by-night” contractors soliciting business.
Although not all traveling contractors are scammers, they may lack the proper licensing for your area, offer quick fixes, or make big promises they can’t deliver. It’s important to note that in North Carolina, a general contractor does not have to be licensed if the project is valued below $40,000. In South Carolina, a residential specialty contractor registration is required for projects exceeding $500.
The moments after a storm or natural disaster can feel overwhelming. After everyone is accounted for and safe from immediate threat (including pets), cleanup and recovery can begin. Storm victims should never feel pressured to make a hasty decision or choose an unknown contractor. Make temporary repairs if necessary so you can take the time to choose a trustworthy contractor. BBB has tips to help you recover safely and effectively after the storm!
Assess the damage
Assess the damage and take pictures.
Contact your insurance company immediately. Inquire about policy coverage and specific filing requirements. This gets the ball rolling on the claim process.
Document the damage to your property (and autos). Take pictures and if possible, video evidence.
Do not make any permanent repairs until you get approval from your insurance company. Your insurer might not fully reimburse you for permanent repairs made without their authorization.
Clean and make temporary repairs
Make minor repairs that will limit further damage to the home. If you have to make temporary repairs to protect your home from the elements, be sure to save all of your receipts.
Wear protective clothing. Long pants, a long-sleeved shirt, and sturdy shoes. Be cautious!
Learn more about how to clean up after a tornado, from the Red Cross, including the supplies you’ll need and how to handle fire hazards such as gas, electricity, and chemicals.
Be on the lookout for price gouging. Report instances to BBB and the Attorney General’s office.
Hire a contractor
Try and get 3 quotes. Get referrals from friends and relatives and check BBB.org for ratings and reviews on contractors in the area.
Do your research on BBB.org and check the state board of licenses for contractors. Local and national companies may both do a fine job with your storm damage repair needs, but if you choose to do business with someone who is not local, be sure to understand who will be taking care of any service needs that may arise after the completion of the project.
Contractors don’t have to be licensed if a project costs less than $40,000 in North Carolina. You can search the North Carolina Licensing Board for General Contractors website to see if a contractor is licensed.
In South Carolina, a current license or registration is required to engage in residential building, specialty contracting or home inspecting activities. A residential specialty contractor registration is required for projects exceeding $500. You can find more information on the South Carolina Department of Labor’s Licensing and Regulation website.
Learn about fly-by-night contractors. These are businesses that follow storms in hope of a quick buck. Research anyone who offers you unsolicited assistance carefully.
Know what you sign
Read and understand anything you are asked to sign. Avoid signing an “estimate” or “authorization” form before you have actually decided to hire a particular contractor.
Get a written contract agreement 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 orally should be written into the contract, including warranties on materials or labor.
Make sure you know the terms and conditions if you choose to cancel a contract.
Understand the terms and conditions and get copies of any warranties and guarantees.
A contractor should be responsible for obtaining all necessary permits, not you.
Review contracts, deposits, and payments
Make sure the contract is specific. Be sure the contract specifies the schedule for releasing payments to the contractor. Ask for a start and end date for the work to be done.
Don’t sign over insurance checks to contractors. Get an invoice from the contractor and pay them directly (preferably with a credit card, which offers additional fraud protection over other forms of payment). Don’t sign any documents that give the contractor any rights to your insurance claims. If you have questions, contact your insurance company or agent.
Never pay in full in advance. Stagger your payment schedule so your final payment isn’t due until the work is complete and you thoroughly inspect it. If you can avoid it, do not pay with cash. Pay with a check written to a company, not an individual, or pay with a credit card..
Paying with a credit card will provide some recourse should the job not be completed, as stated in your contract.
Don’t make a final payment or sign a completion agreement until all work is done to your satisfaction.
If you plan to donate to areas affected by the storm:
After a disaster or very public tragedy, people want to help in any way possible, and that often means contributing to fundraisers to help the survivors and the families of the victims. Sadly, scammers often take advantage of these moments of vulnerability to deceive donors. In addition, there are often campaigns set up by well-meaning individuals who may not be able to deliver on promised relief activities.
BBB Wise Giving Alliance urges donors to give thoughtfully and avoid those seeking to take advantage of the generosity of others. Visit this page for BBB’s tips on wise giving.
For more information, visit bbb.org.
Feature photo: Tropical Storm Debby floods a Lobelia area road on Aug. 9, 2024/Sandhills Sentinel.
Contributed.
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