How to Prevent Contractor Fraud

Contractor scams occur when an individual contractor or firm provides services while tricking a customer. This could result in inadequate repairs or overcharging. Contractor fraud is a serious, illegal act that will cost homeowners in the long run, frequently resulting in additional repairs. The last place you want to be is caught up in a contractor scam. When hiring a contractor, do extensive research beforehand. It is recommended to get a reference from the contractor's previous client. Ask about the contractor's building materials and suppliers. You do not need to pay the contractor until they have paid off all of their supplier payments. A contractor may purposefully charge a lower price for the project and then raise the price later on. If, on the other hand, you believe you are being overcharged for materials or labor, check with a lumber or building supply store or your local long-term recovery group.

To avoid a mishap, keep an eye out for the situations listed below when working with contractors. The best way to avoid becoming a victim of contractor fraud after a disaster is to hire a quality and reputable contractor. When making that decision, consider the following steps:

1. Seek Recommendations from Reliable Sources.
2. Be wary of contractors who are from out of state or have out-of-state licenses.
3. Get bids from at least three contractors- getting multiple bids allows you to compare different contractors. It will provide you with a better understanding of the repairs that are required and the market price for labor and materials. 
4. A copy of their Texas Residential Construction Commission's Certificate of Registration.
   
   

In this digital era we are living in, there are plenty of resources online to locate a reliable contractor. We recommend you contact some better websites to locate your verified contractor. Traditional advertisements solicited by contractors aren't always a bad sign, but be cautious. It is essential to contact your insurance company before beginning work with the contracting company. They can recommend you the next steps and ensure that you work with reputable contractors. If you believe you have been approached by an unlicensed contractor or adjuster, or if you have been asked to fabricate an insurance claim, contact your insurance company right away. 

You can also contact the NICB hotline at 1-800-835-6422 or text your information and “FRAUD: to TIP411".