The Most Common Home Improvement Scams after a Natural Disaster: How to Avoid Fraud
What scams should you avoid after a disaster like a tornado?
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The sad truth is that con artists prey on people who are at their most vulnerable, including homeowners after a destructive weather event. They may perform shoddy work, abandon an incomplete job, or even take off with your money and leave you high and dry.
No matter the disaster, there is a lot you can do to prevent yourself from becoming a home improvement fraud victim. Our guide will help you learn how to stay aware of potential scams and what to do if you’re taken advantage of.
The most common home improvement scams for natural disaster victims
After a disaster, homeowners are often targeted for home improvement scams related to storm damage. Depending on the type and severity of the weather event, as well as the impact it had on local property, scheisters may use different angles to deceive people hoping to get their property fixed as quickly as possible. Here are the most common home repairs needed — and the home improvement scams to be wary of — after natural disasters.
Blizzard
In many areas, blizzards are a threat for as much as half of the year. In addition to knocking down power lines, they have the potential to freeze and burst pipes, crack glass windows, and cave in roofs, even if you prepare your home for winter storms.
Be on the lookout for these scams:
Earthquake
Residents of earthquake-prone areas have probably already taken steps to prevent earthquake damage, but these events are still a gamble even if you earthquake-proof your home. If you’re lucky, a trembler won’t cause any significant damage to your property and belongings, and all you’ll have to do is clean up after an earthquake. Unfortunately, a strong earthquake can cause catastrophic destruction to homes and require significant repairs.
Be on the lookout for these scams:
- Electrical repair
- Foundation repair
- Home building
- Plumbing repair
- Roofing repair
- Window repair
Flood
Whether it’s a flash flood or a forecasted storm, torrential downpours have the potential to cause extensive devastation that requires a lot of flood damage repair and cleanup.
Be on the lookout for these scams:
- Appliance repair
- Mold remediation
- Water damage restoration
- Water removal
- Electrical repair
- Home building
Hurricanes have grown in number and intensity over the last few years, and some people are still working to recover after hurricanes that occurred a year or longer ago. There is almost always a substantial amount of cleanup and restoration involved after a hurricane has passed — and plenty of dishonest people posing as reliable home improvement specialists.
Be on the lookout for these scams:
- Appliance repair
- Electrical repair
- Home building
- Mold remediation
- Roof repair
- Water damage restoration
- Water removal
- Window repair
Mudslides and landslides
Although they’re not extremely common in the United States, mudslides are a risk for many areas after an earthquake, a wildfire, or a significant storm strikes.
Be on the lookout for these scams:
- Home building (usually for external structures that aren’t attached to the home, such as garages and sheds)
- Water and debris removal
- Water damage restoration
Tornado
These disasters are notorious for appearing without warning and completely wiping out neighborhoods. Even if you prepare your home for a tornado, you’re not completely immune to their devastation. If your home is in the path of a tornado, you can expect to have some degree of damage once the cyclone is gone.
Be on the lookout for these scams:
- Electrical repair
- Foundation repair
- Home building
- Plumbing repair
- Roof repair
- Window repair
Wildfires
Wildfires are yet another disaster that many people lose their homes in. If you’re fortunate enough to have your home still standing after the smoke clears, your property may still be in need of repairs.
Be on the lookout for these scams:
- Fire damage
- Electrical repair
- Home building
- Plumbing repair
- Roof repair
- Window repair
Signs you’re at risk of home improvement fraud
You should always take precautions when hiring someone to work on your home whether or not the job is related to a recent weather event. Unfortunately, because they’re desperate to fix their homes as quickly as possible, homeowners are especially vulnerable to home improvement scams after a natural disaster.
To protect yourself from home improvement fraud, be wary of any contractor who:
- Knocks on your door offering their services and who claims to be in the neighborhood working on another project. Trustworthy specialists don’t need to go door to door to find business — they earn work through customer referrals, online reviews, and advertising. This is an especially common scheme after a natural disaster.
- Uses scare tactics to convince you to use their services. Although scammers are likely to use this strategy on anyone who gives them the time of day, many target vulnerable homeowners recovering from a natural disaster. If there truly is a serious problem, a quality professional will explain the situation in a frank and honest, but not an alarming, way.
- Tries to pressure you into signing a contract without allowing you to perform due diligence. If they don’t want you looking into their past projects and customers’ reviews, it’s likely they don’t have a good reputation.
- Offers an extremely low price because they claim they’ll use surplus material. “Surplus material” usually refers to leftover supplies they acquired from a previous job they overbilled for or didn’t finish, and this isn’t the type of person you should do business with. (Think about it this way: when you pay your contractor for your project’s materials, anything that doesn’t get used belongs to you. If you don’t want it and they offer to take it, you should be reimbursed. So, if a contractor has materials they claim they’re not charging you for from a previous job, they probably got them in a shady way.)
- Won’t provide you references for their work. While online reviews are a convenient way to learn about the reputation of a contractor, even some top-notch candidates don’t have them (or it may be difficult for you to access them if the storm knocked out your power and internet lines). In this case, you should ask for the names and phone numbers of at least two previous customers, and the contractor should hand them over without question. If they don’t, they may have something to hide, or they may lack the experience you need to get the job done right.
- Asks for payment (especially cash) up front. For long-term projects, a reliable professional will write a contract and not expect full payment until it’s been fulfilled. (If they ask for a deposit, it should be no more than one-third of the total project price, and you should only pay it once your materials have been purchased and delivered to the job site.) Trustworthy specialists working on short-term projects won’t ask to be paid until the work is done.
- Doesn’t want to write a contract. Even projects that will only take a few hours should be put down in writing (with the price included) before the work starts.
What to do if you’re the victim of a home improvement scam after a natural disaster
If you do fall victim to home improvement fraud, don’t be too hard on yourself. Unfortunately, it happens to a lot of people, especially after natural disasters when emotions are running high. Try to keep calm, and follow these steps to seek justice:
- Gather any documentation you have regarding the project, including your contract, emails, voice mails, and text messages. Take photos of the work site(s), regardless of how much work was completed. You’ll need all of this information when notifying the authorities of the fraud that was committed.
- File a criminal complaint with your local police department. If they are unable to help you, file a small claims court case. It may seem like more trouble than it’s worth, but remember, con artists count on you letting them win. In fact, many will return your money to avoid going to court, but only if they are officially summoned to make an appearance.
- File complaints with the appropriate state licensing boards, the Better Business Bureau (BBB), Angie’s List, and HomeAdvisor.
Surviving a natural disaster — especially when your home does not — is an overwhelming experience. The last thing you need during this time is to fall prey to a scam, so keep your guard up and err on the side of caution throughout the process. Use a site like Angie’s List to read customer reviews from prescreened professionals, or get a friend’s recommendation for reliable contractors. For every project you need done, speak with at least three different contractors to compare prices, timelines, and your chemistry. Remember that the lowest bid isn’t always the best offer, and be sure to get contracts and receipts for all of the work you agree to have done. By taking these important steps, your home will be on the mend and you’ll be able to resume your normal, pre-disaster life as soon as possible.
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