Tips for avoiding insurance fraud

Insurance fraud costs Americans billions of dollars annually. While most home-repair contractors are honest and do quality work, others do not. Allstate Insurance reminds homeowners to be on the look out for potentially fraudulent contractors to avoid getting scammed:

--Be wary of contractors who solicit door-to-door. Work only with

established contractors and those who have a solid reputation.

--Work only with licensed, bonded and insured contractors and have

them provide you with documentation.

--Require references and check them out.

--Check with your local Better Business Bureau to see if any

complaints have been filed against contractors you are considering.

--Don't feel pressured into signing a contract, and never sign a

contract with blanks. A contract should include the contractor's name,

business name, phone number and address.

--Avoid payment-in-full up front. Some contractors may require a

partial up front payment, but the amount should not exceed approximately

20 percent of the total estimate amount.

--Never let work begin on your home or business until the contract

is finalized.

--Don't pay a contractor in full or sign a completion certificate

until the job is completed and you are satisfied with the work - avoid

making cash payments.

--If anyone performs unauthorized work on your property and

demands payment, consider contacting authorities.

--Never let anyone persuade you to seek reimbursement for

nonexistent or exaggerated losses or damages. This is insurance fraud,

which is a felony.

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