LMC Insurance & Risk Management
  • About Us
    • Leadership
    • Wisconsin Office
    • Accessibility
  • For Business
    • Property Casualty
    • Employee Benefits >
      • Iowa Health Insurance Pool
      • Share to Compare
    • Financial Services
    • Surety Bonds
    • Risk Management
    • Cyber Security
    • Executive and Owner Risk Management
  • Industries
    • Construction
    • Healthcare
    • Higher Education and Nonprofits
    • Hospitality
    • Manufacturing
    • Petroleum
  • Personal
  • Contact Us
    • Report A Claim
    • Iowa
    • Wisconsin
  • Online Tools
  • Careers
    • Open Positions
  • Blog
  • About Us
    • Leadership
    • Wisconsin Office
    • Accessibility
  • For Business
    • Property Casualty
    • Employee Benefits >
      • Iowa Health Insurance Pool
      • Share to Compare
    • Financial Services
    • Surety Bonds
    • Risk Management
    • Cyber Security
    • Executive and Owner Risk Management
  • Industries
    • Construction
    • Healthcare
    • Higher Education and Nonprofits
    • Hospitality
    • Manufacturing
    • Petroleum
  • Personal
  • Contact Us
    • Report A Claim
    • Iowa
    • Wisconsin
  • Online Tools
  • Careers
    • Open Positions
  • Blog

Welcome to the LMC Blog

Don't fall victim to contractor scams following a disaster

10/15/2018

 
Across the country property and business owners have been overwhelmed by damage caused by tornados, fire, flood, and other disasters. For many, this is the first time they have experienced such loss, and they become targets of insurance fraud when questionable contractors show-up in damaged communities offering to clean and repair the damage, handle the insurance claim, and other services.
Tips for hiring a contractor | LMC
A dishonest contractor may collect payment without completing the work, they may use inferior materials, or they may perform work that is not up to code. It’s not uncommon for a fraudster to convince a property owner that a large deposit is required before work can begin. Often, the work is started, but not completed before the crooks disappear. Further, a contractor that manipulates the price to cover the deductible or extra work not caused by the disaster is committing insurance fraud.

Signs of a scam
How can you tell if a contractor might not be reputable? The Federal Trade Commission warns that you may not want to do business with someone who:
  • Shows up without an appointment to solicit business
  • Just happens to have materials left over from a previous job
  • Pressures you for an immediate decision
  • Only accepts cash, asks you to pay everything up-front, or suggests you borrow money from a lender the contractor knows
  • Asks you to get the required building permits
  • Tells you your job will be a "demonstration” or offers a lifetime warranty or long-term guarantee
  • Doesn’t list a business number in the local telephone directory

Before you hire a contractor

If you’ve been a victim of a disaster, don’t rush into repairs or rebuilding without contacting your insurance agent, securing your property from further damage/loss, and documenting the damage. The National Insurance Crime Bureau recommends these tips before you act on a contractor’s offer for services:
  • Work with your insurance company to get an accurate damage estimate and references for a reliable contractor
  • Work only with licensed and insured contractors
  • Get an estimate from more than one contractor
  • Don’t be pushed or pressured into signing a contract right away
  • Get everything in writing, including cost, work to be done, time schedule, guarantees and payment schedule
  • Require references and check them out.
  • Ask to see the salesperson’s driver’s license and write down the number; also write down the salesperson’s license plate number.
  • Never sign a contract with any blanks not filled in.
  • Never pay a contractor in full or sign a completion certificate until the work is completed.

There are many honest, reputable contractors that specialize in disaster restoration. Work with your insurance agent, do your research, and get everything in writing. Qualified contractors are licensed, have the tools and materials required for the job, and have skilled personnel trained in mitigation and restoration.
​
Emotions run high following a disaster – and that’s understandable. Use caution during this time. Because awareness is the first step in prevention, be aware of the potential fraud that could occur following a disaster. Talk to your employees about how scams happen and how to spot them.

Comments are closed.
    We're here to help.
    ​1-800-677-1529
    ​
    Email Us
    Follow @lmc_insurance

    Categories

    All
    Compliance
    Construction
    COVID 19
    COVID-19
    Cyber Security
    Directors And Officers
    Employee Benefits
    Executive Benefits
    Healthcare
    Higher Education
    Human Resources
    Manufacturing
    News
    Personal Insurance
    Property And Casualty
    Risk Management
    Wellness
    Workers Compensation

    Archives

    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    April 2018
    March 2018
    January 2018
    December 2017
    November 2017
    October 2017
    August 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017

    While every effort has been taken in compiling this information to ensure that its contents are totally accurate, neither the publisher nor the author can accept liability for any inaccuracies or change circumstances of any information herein or for the consequences of any reliance placed upon it. This publication is distributed on the understanding that the publisher is not engaged in rendering legal, accounting, or other professional advice or services. Readers should always seek professional advice before entering into any commitments.
LMC Insurance & Risk Management
​About   |   Blog   |   Contact

Iowa
4200 University Ave, Suite 200 
West Des Moines, IA 50266-5945
Wisconsin
PO Box 620533
Middleton, WI 53562
 © 2020 LMC Insurance & Risk Management. All rights reserved. Privacy policy.