These Scammers Target People Recovering From Natural Disasters

It's always storm season somewhere, and recent disasters in the South and Midwest have left significant damage in their wake. Unfortunately, scammers strike when people are vulnerable. Some seemingly helpful individuals and organizations may be what the Better Business Bureau calls "storm chasers"—fraudsters who target homeowners impacted by severe weather or a natural disaster that causes damage and necessitates major repairs.

How storm recovery scams work

Post-storm home improvement scams can play out in a number of ways, but they usually start with an unsolicited phone call or knock on your door from a "contractor" offering to repair your home quickly and on the cheap. They may say that they are doing work for your neighbors and have leftover materials and extra time and can offer you a deal. They may pressure you to pay upfront so they can begin immediately. They may tell you that you can submit the bill to your homeowners insurance for reimbursement or persuade you to sign over your claim payment to them.

More than likely, none of this is true. These fake contractors will take your money and run, sometimes without doing any work at all. Or they'll do such shoddy repairs that you'll end up paying again to have it done right.

This isn't the only way in which people attempt to take advantage of post-storm recovery efforts. Scammers will set up fake donation sites and collect money that'll never be distributed to the cause or community they claim to represent. Some bad actors may even impersonate FEMA personnel or other first responders to gain unchecked access to disaster areas and, as a result, your property and any belongings (including documents containing personal information) left behind.

Watch out for storm recovery scam red flags

When you're trying to rebuild your home and your life after a storm, it may be hard to turn down help that's offered—but as always, if it sounds too good to be true, it probably is. There are a number of red flags that you might be dealing with a scam contractor:

• They demand cash or prepaid debit cards or payment via peer-to-peer apps.

• They promise a huge discount but are vague about the final price.

• They pressure you to make a decision on the spot.

• They request payment up front.

• They claim to have leftover materials to offer for cheap.

• They refuse to provide a contract.

• They say you're responsible for pulling permits.

• They try to avoid inspections.

The best way to avoid this scam is to not act out of urgency or emotion. Take the time to do your due diligence: Check the contractor's license and insurance, and request a written estimate and contract. Get several estimates for the job, even if it takes time. Don't pay the full fee until the work is finished to the contract specs.

If damage is the result of a storm or weather event, do not pass go until you've contacted your homeowners insurance company. You should begin the claims process as soon as you can and document everything as thoroughly as possible. Taking any other action before making this call could compromise what your policy covers.

Finally, you should take steps to secure high-value belongings and sensitive documents so they're not easily exposed in the event of a disaster, and always research organizations before you donate.

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