Extreme Caution Required When Hiring a Contractor to Repair or Rebuild Your Home

Your home is probably your most valuable asset. It's important to be very selective when you hire someone to rebuild or repair it. In most cases, disasters bring out the best in people neighbors who want to work together to rebuild. However, disaster can also bring out the worst in some. It is prudent to exercise extreme caution. In past disasters, unscrupulous contractors took advantage of disaster survivors. If only these families had followed a few simple guidelines BEFORE they chose their contractor.

Finding a reputable contractor

• The first step is to decide what you want done before you begin contacting potential contractors. If you don't know what work you want completed, you may end up with less than you need or more than you can afford. Make a list of what you need and be as specific as possible.
• To identify a contractor, get recommendations from friends, research the contractor's reputation, and get written estimates. Ask friends, family, coworkers, and neighbors to recommend contractors who did good work for them in the past. Some neighborhood associations maintain a list of contractors and repair services that members recommend. The Resource Guides at Route 4 can direct you to lists of licensed local contractors.
• Contact at least three different contractors to compare their services. Ask for references and talk to their previous and current customers. Ask previous customers if the contractors performed quality work and stayed within cost estimates. Check to see if there are excessive complaints on file at the licensing bureau, the local consumer affairs office, or the Better Business Bureau. Ask the contractor for copies of current licenses and insurance certificates. Most states require electrical and plumbing contractors to be licensed. The contractor should carry personal liability, workers compensation, and property damage insurance.
• When comparing contractors, get written estimates from them. Make sure that all of the estimates are based on the same specifications. Once you have chosen a contractor, get a written contract that outlines who is performing the work, what work is being done, where the work is being done, the start date and completion date, and what it will cost. The contract should be clear, concise and complete. Get all guarantees, warranties and promises in writing.

Steering Clear of Scams

Following catastrophic events there is usually a spike in reports of fake websites, fraudulent phone calls, or scam e-mails claiming to be from legitimate charitable organizations but are actually criminals pocketing donations that were intended to go to disaster victims. You can avoid becoming a victim by taking these precautions:

Don't give cash Use either a check or a credit card so that you have some consumer protection, such as placing a hold on a check or disputing the transaction with the credit card company.

Protect your personal and financial information Never divulge your bank or Social Security number or other personal information.

Know who you're giving to Give only to charities that you know or you have researched thoroughly.

Use special precautions when donating online Don't follow a link from one website to another. This can lead to a fake website operated by a scam artist, even though the site may look identical to the real website.

Watch out for unsolicited offers Check out any unsolicited offers of repairs or other products or services for disaster victims.

Caution: Don't Take the Bait from Quick Sale Buyers

• Beware of ads or websites that include statements such as, We buy houses in any condition, Cash today, and so on. 
• Beware of aggressive agents. Buyers may contact you by telephone, mail, flyer and by coming door-to-door. If they are very anxious to get your business, it may not be a good sign. 
• Buyers may find an agent with a background similar to yours to gain your trust and give you a false sense of security. They hope you will sell out to them based on your relationship with the agent instead of based on true knowledge and understanding of the value of your house. 
• Beware of bait-and-switch tactics. Some crooks will knowingly offer you a higher amount that is more appealing. After you show an interest to sell, they may tell you that the offer has dropped and pressure you to sell at a much lower price. 
• Do not be pressured to sign any document because the offer is only good for an limited time or today only. You need a chance to review the document with your attorney, legal advisor, or someone you can trust.