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After a Disaster: Repairing Your Home
courtesy FTC
If your house has been damaged by a natural disaster - flood, fire, snow/ice,
tornado or earthquake - chances are you're on the hunt for a reputable
contractor to help with repair and restoration. Inevitably, the demand for
qualified contractors after a disaster usually exceeds the supply. Enter the
home repair rip-off artist, who may overcharge, perform shoddy work or skip town
without finishing your job.
Because many legitimate licensed home repair companies can be booked solid
for months, frustrated and anxious homeowners and landlords, eager to get their
property back in shape, may neglect to take the usual precautions when hiring
contractors. As a result, some consumers find that they've hired part-time
contractors, who may not get the job done in a reasonable time; contractors from
surrounding areas, who may be difficult to track down for follow-up;
inexperienced contractors, who may not do the job well; and all too often, just
plain crooks, who are seizing the opportunity to make a fast buck.
Many communities have emergency ordinances in place to keep crooked
contractors out. But for consumers desperate to get the work done, recognizing a
home repair rip-off can be a challenge.
The Federal Trade Commission (FTC) and the Federal Emergency Management
Agency offer the following tips for consumers who may be facing major repairs
after a disaster hits home:
- Deal only with licensed and insured contractors. Verify the track record
of any roofer, builder or contractor you're thinking of hiring. Ask for a
list of recent customers and call them.
- Get recommendations from friends, relatives, neighbors, co-workers,
insurance agents or claims adjusters. Also check with the local Better
Business Bureau and Home Builders Association to see if complaints have been
lodged against any contractor you're considering.
- Take your time about signing a contract. Get a written estimate that
includes any oral promises the contractor made. But remember to ask if
there's a charge for an estimate before allowing anyone into your home. Ask
for explanations for price variations, and don't automatically choose the
lowest bidder. Get a copy of the final, signed contract before the job
begins.
- Resist dealing with any contractor who asks you to pay for the entire
job up-front. A deposit of one-third of the total price is standard
procedure. Pay only by check or credit card - and pay the final amount only
after the work is completed to your satisfaction. Don't pay cash.
- Be skeptical of contractors who encourage you to spend a lot of money on
temporary repairs. Make sure there's enough money for permanent repairs.
- Ask a knowledgeable friend, relative or attorney to review a home repair
contract before you sign. If you get a loan to pay for the work, be cautious
about using your home as security: If you don't repay the loan as agreed,
you could lose your home. Consider asking an attorney to review the loan
documents, as well.
If you suspect a repair rip-off, call the consumer division of your state
Attorney General. If you suspect fraud, waste, or abuse involving Federal
Emergency Management Agency disaster assistance programs, report it to FEMA's
Inspector General's Office.
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