How To Avoid Getting Scammed by Contractors After Natural Disasters

Twice in the last month, a contractor knocked on my door offering discounted services because they were “in the neighborhood” on another project, but insisted I sign up immediately. When I asked to think it over, both quickly left without providing a business card. I realize now that these were both likely home repair scams attempting to target unsuspecting homeowners.

Ahead, find tips from law enforcement and consumer protection professionals on how to avoid falling victim to these often persuasive scammers.

What Is a Home Repair Scam?

Home repair scams can take various forms but generally result in homeowners paying for repairs or services that are never started, left unfinished or, done poorly. The contractor’s intent is to intentionally defraud a homeowner for financial gain. “These issues are frustrating for consumers as often money is wasted, or the home can be left in a chaotic state,” says Layla R. D’Emilia, the Massachusetts Undersecretary of the Office of Consumer Affairs and Business Regulation.

Popular Home Repair Scams

Most home repair scams begin right on your doorstep, as it is a popular technique to go door to door.

Fast and cheap post-disaster repairs

After a natural disaster, watch out for contractors who show up to your house promising low-cost repairs done quickly. While tempting, these are often out-of-state or unlicensed workers who simply take a down payment and disappear.

Door-to-door “free” inspection scam

This home repair scam often starts when a contractor unexpectedly knocks on your door, offering a free home inspection. During the inspection, they “discover” an urgent issue and ask for upfront payment to quickly make repairs. The work is often poorly done or left incomplete.

Bait and switch

This home repair scam begins with an extremely low estimate designed to lure the homeowner. Once hired, “unforeseen issues” arise, significantly increasing the cost, often to the amount of the original highest bidder.

To avoid this one, I always try to obtain three estimates and choose the one in the middle, no matter how tempting the low estimate may be.

Signs a Contractor Is Scamming You

Like the two gentlemen that knocked on my door, pressured sales tactics is a classic sign you’re being scammed. You should never have to sign up or pay for something “right now” or else lose your chance. Other signs you’re being scammed include:

• A contractor demands full payment before work begins.
• You’ll get a discount because the contractor has leftover materials from another job.
• A contractor refuses to draw up a contract.
• Payment methods will only be cash or through an on-line payment app.
• A contractor asks you to pull permits with your municipality.

Tips to Avoid Contractor Scams

Jennifer Gundersen, Chief of Police for the town of South Hadley, Massachusetts, recommends asking neighbors and friends for contractor recommendations to avoid falling victim to home repair scams.

Other ways to protect yourself include:

• Ask for and check professional references
• Verify contractors are licensed, bonded and insured
• Require a detailed, written estimate with a clear payment schedule and work timeline
• Avoid door-to-door contractors
• Never sign something or make a payment under pressure
• Never make a large down payment before work has begun

What to Do If You Think You’re Being Scammed

“If you think you are the victim of a contractor scam, contact your local police department right away,” Gundersen says. She recommends taking a photo of the license plates of any worker vehicles so you can provide this information to the police if necessary. “You should [also] file a complaint against the contractor with your state’s relevant agency, such as consumer affairs or the attorney general,” D’Emilia says.

Other resources include your state’s Office of Consumer Affairs or Attorney General. Both can help you lodge formal complaints or take legal action.

About the Expert

• Jennifer Gundersen is the Chief of Police for the town of South Hadley, Massachusetts. She has been in this role since 2019 and began her law enforcement career in 1994.
• Layla R. D’Emilia is the Undersecretary of the Office of Consumer Affairs and Business Regulation in the state of Massachusetts. She was appointed to this position in 2023 and oversees the office and its five affiliated agencies.

Sources

New York State Department of Financial Services “Beware of Home Repair Scams”