Tips for avoiding insurance fraudInsurance fraud costs Americans billions of dollars annually. While most home-repair contractors are honest and do quality work, others do not
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
--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.