After the Storm
Home Repairs and Replacement
What Happens After a Storm
• Victims of a storm suffer some type of loss
and different levels of shock.
• The news media publishes accounts of the
storm damage nationwide.
• Contractors from several states away see a
chance to pick up a lot of work and make
money. Most will not be licensed in Alabama.
• Every scam artist will see a chance to cheat
victims out of their insurance proceeds.
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Don’t Become a VICTIM
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Insurance Issues
• Depending on your insurance company, claims
are usually handled in one or two ways:
– The insurer may require several estimates.
– The insurer may use its own estimators to determine
the amount of damage.
• Review the claim before you cash the check.
Make sure that everything damaged is included in
the claim. By cashing the check, you may be
agreeing to that amount being the total
settlement.
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Contracting Issues
• Anyone can buy a business license from the city
or county. It does not mean that he or she is a
professional contractor.
• Contractors must be licensed through the Home
Builders Licensure Board if they are making
home repairs costing more than $10,000.
• The city or county will also require building
permits before construction can begin.
• If construction costs go over a certain amount,
the entire home must be brought up to code.
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How to Select a Contractor
• Verify each contractor’s name, address, and
phone number. Beware of pagers, PO boxes,
out-of-state area codes, and motel addresses.
• Contact the Alabama Home Builders Licensure
Board to verify records (1-800-304-0853);
check Better Business Bureau records.
• Obtain names and phone numbers for
references on similar work done by the
contractor.
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How to Select a Contractor
• Compare two or three bids based on the same
specifications and scope of work.
• Never choose a contractor who demands
payment before beginning the work.
• Remember that professionals do not solicit
business by going door-to-door.
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What Should You Do?
• Hire only Alabama-licensed contractors.
• Ask to see a Home Builders License Certificate
and other forms of identification.
• Call to verify all information.
• Require a written contract.
• Use inspectors.
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What Should You Avoid?
• Don’t rush to hire the first contractor to come
along.
• Don’t sign a contract until you understand the
terms and conditions.
• Don’t become a victim of construction fraud
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Scam Artists Say…
• “I just finished another job in the area and I
am trying to get rid of this extra material.”
• “The price I’m quoting you is very low because
we plan to use your home as a demonstration
model.”
• “You will have to pay me in cash since I’m
giving you such a good deal.”
• “This offer is good TODAY ONLY.”
• “Don’t tell anyone else about our deal.”
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More Lines Used by Scam Artists
• “I’ll have to have all or most of the money up
front.”
• “I’ll need some additional money to order
more supplies before I can finish the job.”
• “You need to have this work done
immediately. You don’t have time to think
about it.”
• “The price of materials will go up tomorrow.”
• “I’ve got several other jobs waiting on me.”
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Protect Yourself and Your Family
• In the contract, tie the inspection approvals
with any payments to the contractor. Building
inspectors are there to protect YOU.
• Establish start and end dates in writing, and
set dollar penalties for not meeting deadlines.
• Get all guarantees and warranties in writing.
• Verify the contractor’s workers compensation
and liability insurance coverage. Make sure it
is up-to-date.
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Professional Advice
The information in this presentation and
accompanying material is provided for
educational purposes only. It is not a
substitute for competent legal advice. This
information is provided to help you better
communicate with your professional advisrs in
analyzing your specific situation.
Presentation provided by Rick Zapata, ACES Regional Extension Agent, Consumer Science and
Personal Financial Management
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