Columbia, S.C.: Stay Alert to Avoid Scammers After a Disaster
Columbia, South Carolina, has recently experienced a series of disasters that left many residents in need of urgent home repairs. Unfortunately, in the aftermath of such events, it’s not uncommon to see fraudsters and scam artists swoop in, looking to take advantage of vulnerable homeowners. To help you navigate these challenging times, the South Carolina Department of Insurance (SC DOI) has shared some friendly, yet essential, tips to protect yourself from potential scams.
Check Your Contractor’s Credentials
When it comes to hiring someone for home repairs, it’s crucial to ensure that you’re dealing with a legitimate contractor. Always check online reviews and see if there are any complaints against the contractor with the Better Business Bureau (BBB). Asking for references is also a great way to gauge their reliability. A quick reminder: FEMA does not endorse or certify contractors. So if someone claims to be “FEMA certified,” they’re not being truthful.
Spot the Red Flags
Be on the lookout for warning signs of a shady business. A trustworthy contractor won’t put you under pressure to make quick decisions, nor will they ask for payments upfront. If a contractor tries to rush you into a decision or pressures you at all, that’s a massive red flag. You should also steer clear of any contractors who are going door-to-door. When it’s time to pay, do so in installments with a check or credit card. This way, you’ll have a record of your payments and always get an invoice and a receipt. Your peace of mind is worth it!
Get Multiple Estimates
Before you settle on a contractor, it’s wise to get estimates from at least three different companies. If one quote seems significantly lower than the rest, don’t be too quick to take it as a good deal. Ensure all estimates include the same services and check their references. This comparison can save you from unexpected expenses later on.
The Importance of Written Contracts
Never underestimate the value of a solid contract. Your contract should outline every task, repair, as well as start and finish dates—plus the prices for repairs and materials. Do not sign a blank contract, as it gives the contractor room to fill it in with whatever they choose later. Be smart and protect yourself with a detailed written agreement.
Handle Assignments of Benefits with Care
Also, be cautious about signing an Assignment of Benefits (AOB). This agreement lets a third party, like a contractor, act on your behalf for claims with your insurance. Keep in mind that AOBs mean your contractor can get paid directly from your insurance company, so it’s critical to fully understand what you’re signing up for.
Gather Necessary Information
Before you hire anyone, make sure to collect the following valuable information:
- A copy of the contractor’s identification that includes their name and business name.
- A copy of the contractor’s business license—double-check that it hasn’t expired.
- A copy of the contractor’s proof of liability insurance. Ensure it includes the company’s name, phone number, and policy number. It’s a smart move to call their insurance company to verify coverage.
- A copy of the contractor’s proof of workers’ compensation insurance.
Need Help? Reach Out!
If you have questions or need assistance, don’t hesitate to contact the South Carolina Department of Insurance’s Office of Consumer Services at 803-737-6180. You can also visit their website for additional information and handy tips on navigating the claims process.
If you’re a flood insurance policyholder, make sure to reach out to your agent or the National Flood Insurance Program (NFIP) directly to report flood claims at 1-800-427-4219. For anyone suspecting fraudulent activity, report it by calling 1-800-95-FRAUD.
In the face of disasters, staying informed is your best weapon against scams. By taking these simple precautions, you can safeguard not just your home, but your peace of mind as well.
