Insurance fraud can leave you devastated and in emotional ruins. Anyone can end up a victim of insurance fraud. If you know the red flags, you can avoid the pitfalls that happen with insurance fraud.
After a hurricane, scammers disguised as contractor’ and prey on innocent victims. Victims are often in a state of shock and trust people helping in acts of God situations. Roofing scams. Here is how it works. In the aftermath of the devastation, they approach you about doing repairs. They give a low bid and coerce you into signing a contract. They often skip town with your up-front payment. If the work is completed, it is often shoddy at best. Always check out any company claiming to be a contractor.
Water damage repair scams work the same way. A person claiming to be a contractor approaches you about repairing the water damage to your home. They give a very low estimate, coerce you into a contract, ask for money up front, then skip town.
These scams can happen when you want to sell your home and need repairs for the sale. After an inspection, you may get several estimates. An estimate that is far below all the estimates you have gotten from contractors should be the big red flag. If you decide to hire the low-ball company, make sure you do all your research on the company to make sure they are licensed and insured. Check the Better Business Bureau. Ask for reviews from prior customers. In other words, do your homework before hiring anyone to do the contracting work you need.
Here are several warning signs the contractor may not be a legitimate contractor.
They ask for a large pre-payment
They failed to produce the proper paperwork when asked about their company license and insurance, or the paperwork that was produced does not check out as legitimate.
They begin the work, but the materials they are using are inferior and cheap products.
During an inspection, you suddenly find yourself with a mound of damage that was not evident to you before the inspection. Get another inspection. The scam is simple. The inspector creates damage because a company needs work. If something doesn’t seem right, it probably isn’t.
Desperate contractors may intentionally worsen dame that already exists. Watch the inspection and make sure this doesn’t happen to you.
If a contractor agrees to pay your deductible to win a bid, be very wary. Often times, they do not pay your deductible even when they verbally agreed to do so.
The best way to avoid being scammed by insurance fraud is to use common sense. Get several bids on any work that you need done. Check out an inspector or a contractor’s credentials from licenses to insurance. Staying wise to insurance fraud can save you many headaches and your savings.
Learn more about insurance fraud.
Cornerstone Center
608 E. Moody Blvd
Bunnell, Fl 32110
May 24 11:30 am – 2:00 pm
Don’t Be a Victim, Learn Everything About Insurance Fraud
Cornerstone Center, Rytech Restoration & FCAR invites local real estate agents & insurance companies to the Palm Coast FCAR Building to teach on how to avoid their customers from Being a Victim of Fraud.
Register for this Free workshop.
Steps to avoid being scammed by insurance fraud (cornerstonecenterfl.com)
