COLUMBUS, Ohio — As severe weather season continues in Ohio, the Ohio Department of Insurance is leading the charge in raising awareness about an unfortunate consequence that often follows—contractor fraud. With Contractor Fraud Awareness Week slated for May 22-26, the department aims to equip Ohioans with essential tips and insights to shield themselves from unscrupulous contractors who exploit homeowners during times of distress.
In the aftermath of severe weather, it’s not uncommon for home repair contractors to canvass neighborhoods, offering their services to restore roofs, siding, and other crucial repairs. While the majority of contractors are reputable and genuinely seek to assist homeowners, there are, regrettably, dishonest individuals who prey on vulnerable consumers eager to reclaim the sanctity of their homes and restore normalcy to their lives.
To safeguard their hard-earned money and avoid falling victim to contractor fraud, the Ohio Department of Insurance urges residents to take several precautionary measures. First and foremost, homeowners are encouraged to contact their insurance company to initiate a claim before engaging a contractor. This vital step allows the insurance company to verify the extent of repairs required and ensures that homeowners are on the right track from the get-go.
When selecting a contractor, it is imperative to verify their legitimacy. Homeowners should conduct thorough online searches to gather information about the individual or company, peruse reviews from previous clients, and assess their reputation. Additionally, it is wise to cross-reference the contractor with the Better Business Bureau and the Ohio Attorney General’s Office for any complaints or red flags. Requesting references directly from the contractor can provide valuable insights into their reliability and professionalism.
Recognizing the warning signs of unscrupulous businesses is crucial in avoiding contractor fraud. Reputable contractors do not resort to high-pressure tactics to force homeowners into hasty decisions, nor do they demand a full payment upfront. Instead, homeowners are advised to opt for payment in installments, utilizing a check or credit card to maintain a transparent payment record. Obtaining an itemized invoice and a receipt for each payment is equally vital in establishing a clear financial trail.
To ensure fair and accurate estimates, homeowners are encouraged to obtain quotes from a minimum of three different contractors. Comparing quotes sheds light on the scope of work and associated costs, enabling homeowners to make informed decisions. However, it’s important to ensure that the quotes received encompass the same items and services for an accurate comparison. Additionally, checking references provided by the contractors is instrumental in confirming their competence and reliability.
Understanding the distinction between a “licensed” and a “registered” contractor is a crucial aspect of avoiding contractor fraud. A licensed contractor has successfully completed examinations and met stringent requirements to demonstrate their competence in the field. Conversely, a registered contractor has provided their contact information to a government authority. For further information regarding licensing and registration, homeowners can reach out to the Ohio Department of Commerce and Ohio Secretary of State’s Office.
Homeowners should exercise caution when presented with an assignment of benefits. This agreement allows a third party, such as a contractor, to act on behalf of the policyholder, facilitating direct payment from the insurance company. While this may streamline the payment process, homeowners must carefully consider the implications and consult with their insurance provider before signing such an agreement.
Before finalizing any contracts, homeowners are strongly advised to insist on obtaining a comprehensive written agreement. The contract should outline in detail all the tasks and repairs the contractor intends to undertake, including specific start and finish dates, as well as prices for materials and labor. It is of utmost importance never to sign a blank contract and to retain a copy of the signed agreement for personal records.
Furthermore, homeowners should gather essential business information from the contractor to ensure they are dealing with a legitimate entity. This includes verifying the contractor’s identification, obtaining a copy of their business license (ensuring its validity), and requesting proof of liability insurance. It is imperative to verify that the insurance documentation clearly displays the contractor’s name, phone number, and policy number, and to directly contact the insurance company to verify coverage. Additionally, homeowners should request a copy of the contractor’s proof of workers’ compensation insurance.
To navigate the property damage recovery process and gain a better understanding of insurance matters, homeowners are strongly encouraged to educate themselves. Valuable resources such as insurance.ohio.gov and naic.org provide a wealth of information regarding insurance policies, claims procedures, and other pertinent topics.
In the unfortunate event that homeowners believe they have been defrauded by a contractor or suspect fraudulent activities, such as being encouraged to fabricate an insurance claim, it is vital to report the incident promptly. The Ohio Department of Insurance stands ready to assist Ohioans in such instances and can be reached at 800-686-1527 or via their official website at insurance.ohio.gov.
Contractor Fraud Awareness Week serves as an important reminder for Ohioans to remain vigilant, conduct thorough research, and take proactive steps to protect themselves and their cherished properties from unscrupulous individuals. By staying informed and diligently following the suggested guidelines, homeowners can make well-informed decisions and significantly reduce the risk of falling prey to contractor fraud. Remember, a little caution today can save you from headaches tomorrow.