Last week, we discussed the claims process on your homeowners’ insurance. This week, we will share some tips and tricks to avoid any potential scams after you file your insurance claim.
Hiring a Contractor
- Get multiple bids before you sign any contracts.
- Avoid contractors that encourage you to spend a lot on temporary repairs. While your policy covers quick repairs, they can erode the limit available for permanent repairs.
- Investigate the background of any contractor before you hire them. Ask for referrals and check prior jobs. Additionally, it’s not a bad idea to check with the state contractor’s board and Better Business Bureau to ensure the contractor hasn’t received any complaints.
- Avoid contractors that ask for significant sums of money before they perform any work. This is a standard fraud scheme where the contractor will take the money and never complete the work.
Public Adjusters and Attorneys
- Be cautious in hiring a public adjuster. It’s also a good idea to be extremely careful with any adjuster going door-to-door soliciting business after a catastrophe.
- Before hiring an attorney or adjuster, try working with our office and your assigned adjuster first. State laws require the insurance company to be forthright and responsive. If they are not, it might be prudent to bring an attorney.
- Verify the credentials of the person you are looking to hire, especially if your claim is unique or complicated. Ask for referrals and verify their background just as you would a contractor.
- It’s essential to remember that you will have to pay a public adjuster 15 percent and an attorney as much as 30 percent of your total claim settlement.
