BBB Tip: Protect yourself from "storm chasers" after a natural disaster

Kelvin Collins

Natural disasters like  storms, tornadoes,  hurricanes,  flooding, and wildfires often bring out the best in people as strangers reach out to help others in need. Unfortunately, the aftermath of a crisis also brings out contractors taking advantage of those who have already been victimized. 

Local contractors may be busier than usual with new customers after a natural disaster, meaning victims of storm damage may be eager to hire a contractor to fix their home repairs as quickly as possible, ignoring red flags. It’s important to stay vigilant and hire a trusted business that will get the job done right.

 BBB warns homeowners affected by natural disasters to beware of “storm chasers” and out-of-town contractors soliciting business. Although not all storm chasers are scammers, some may lack the proper licensing for your area, offer quick fixes, or make big promises that they don’t keep. 

There are some things you should do when hiring any contractor, such as contacting your insurance company first, obtaining estimates of the work to be done, and getting everything in writing. See below for more details:

1. Contact your insurance company immediately. Ask about your policy coverage and specific filing requirements. Be sure to confirm the insurance deductible that you will need to pay. Save all receipts, including those for food, temporary lodging, or other expenses that may be covered under your policy. Your insurance company may also have recommended contractors or specific requirements.
2. Do your research Find businesses you can trust on BBB.org by looking for the Accredited Business Seal. Check your state or provincial government agency responsible for registering and/or licensing contractors. Get references from friends and relatives.
3. Resist high-pressure sales. Some storm chasers use tactics such as the “good deal” you’ll get only if you hire the contractor on the spot. Be proactive in selecting a contractor and not reactive to sales calls on the phone or door-to-door pitches with too-good-to-be-true offers on price and timelines. Disaster victims should never feel forced to make a hasty decision or to choose an unknown contractor.
4. Be especially careful of door-to-door contractors Many municipalities require a solicitation permit if salespeople go door-to-door. Ask for identification. Check their vehicle for a business name, phone number, and license plates for your state or province. Also look to see if they display the BBB Accredited Business Seal- and check BBB.org to verify it. BBB requires Accredited Businesses to have proper licensure, and only ABs can display the Seal.
5. Don't sign over insurance checks to contractors. Get an invoice from the contractor and pay them directly. If the business allows it, consider paying with a credit card, which offers additional fraud protection over other forms of payment (but be aware of possible transaction fees). Don’t sign any documents that give the contractor rights to your insurance claims. Be sure to read any documents or contracts carefully before signing them. If you have questions, contact your insurance company or agent.
6. Be cautious of requests to pay for everything up-front. “Storm chasers” may ask for the full payment or a very large down payment before any work begins or any supplies delivered. This is a red flag, as the contractor would now have your money and could choose not to return to complete the job. Some contractors require a deposit or payment for materials (once they are delivered) before they start the job. If you have to pay a portion of the cost before any work begins, be sure to have a signed contract in place that outlines the payment terms and be able to see the items you are purchasing.
7. Be wary regarding places you can't see. While most contractors abide by the law, be careful allowing someone you do not know to inspect your roof and other areas of your house. An unethical contractor may create damage to get work. The same goes for attics, crawl spaces, ducts, and other places you cannot easily access or see for yourself. Ask for pictures of the damage that allow you to verify they are of your home.
8. Get familiar with your home. Keep tabs on the conditions of your roof, siding, gutters, and other exterior areas of your home often. You can even keep photos on hand to compare to the ones the contractor takes. If your home is damaged by a storm, you’ll have a better idea of what needs to be repaired versus what a “storm chaser” tells you should be fixed.

BBB Pro Tip: BBB also warns contractors to beware of storm chasers who offer to pay local construction companies substantial amounts of money to use the business’s established name, reputation, and phone and sell on their behalf. These storm chasers then masquerade as a local business, collect the insurance money, and skip town, leaving the real business to deal with unsatisfied customers due to bad workmanship, unfinished work, or unfulfilled warranties.

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Kelvin Collins is president & CEO of the Better Business Bureau serving the Fall Line Corridor, serving 77 counties in East Alabama, West Georgia, Southwest Georgia, Central Georgia, East Georgia, and Western South Carolina. This tips column is provided through the local BBB and the International Association of Better Business Bureaus (IABBB). The Better Business Bureau sets standards for ethical business behavior, monitors compliance and helps consumers identify trustworthy businesses. Questions or complaints about a specific company or charity should be referred directly to the BBB at Phone: 1-800-763-4222, Web site: BBB.org or E-mail: info@centralgeorgia.bbb.org