Be Wary of Deceptive Business Practices after Storms
In the wake of destruction caused by natural disasters, many types of property need repair. Unfortunately, however, some people see this as an opportunity to take advantage of others. Thus, it’s important to be informed and vigilant when hiring professional help. For example, after Hurricane Irene hammered the East Coast, Allstate Insurance issued some of the following tips to avoid deceptive business practices. We added a few warnings of our own as well.
- Do not deal with traveling door to door salesmen using high pressure tactics or who demand money upfront at the first meeting.
- Spend sufficient time when choosing a contractor to rebuild, repair, or perform cleanup on your home or property.
- Obtain several estimates from licensed, bonded contractors. Closely examine their licenses and proof of liability insurance.
- Research each contractor’s credentials with your local Better Business Bureau or Home Builders Association. Do online searches for consumer feedback regarding their work.
- Steer clear of paying money up-front. That said, some established businesses will ask for a partial, up-front payment. However, this should never be greater than the cost of materials, or 20 percent of the total.
- Pay professionals by check. Avoid cash payments to unverified sources.
- Adhere to local building codes and inspection protocol.
- Never sign over an insurance settlement check to the contractor.
- If anyone does unauthorized work on your home or property and then demands payment, alert the local authorities. Report any suspect business actions to your local police, sheriff’s department or your state’s Department of Insurance.
If you think you’ve been the victim of fraudulent or deceptive business practices in California, contact deceptive business practices attorney Howard D. Silver in California at 1-866-49-LEMON for guidance on what to do.


