How to avoid crooked ‘storm-chaser’ home contractors looking for victims to rip off

Dalia Faheid
·7 min read
1

Possible tornadoes, flooding, hail and high winds ripped through Texas on Thursday, inflicting damage to homes and businesses.

Now come the scammers.

“Any weather event will bring about unscrupulous contractors, and this week’s fires and tornadoes are no different,” said Monica Horton, a spokesperson for Better Business Bureau North Central Texas. “While many people seek to help during times of disaster, unfortunately there is also an increased risk for scams and fraud.”

These are the most common scams that victims of natural disasters could encounter, according to BBB North Central Texas.

Storm-chasing contractors

In the aftermath of storms, tornadoes and wildfires, some contractors seek to take advantage of victims.

The Better Business Bureau warns homeowners to beware of “storm chasers” and out-of-town contractors soliciting business. Although not all these contractors are scammers, they may lack the proper licensing, offer quick fixes or make big promises they can’t deliver.

When hiring any contractor, research the company first. Be sure that it has the necessary licenses, insurance and permits. Ask for a list of local references and get at least three quotes before signing a contract. During the project, get everything in writing and save all receipts and contracts. Pay in installments until the work is complete.

Find vetted contractors near you here.

  • Assess the damage and take pictures/video: Document damage to your property. Wear protective clothing like pants, a long-sleeved shirt and sturdy shoes while doing so.

  • Limit further damage: Make minor, temporary repairs to your home to protect it from further damage, and save the receipts.

  • Contact your insurer: Ask about your coverage and specific filing requirements. Save all receipts, including those for food, temporary lodging or other expenses that may be covered under your policy. Your insurance company may have recommended contractors. Do not make any permanent repairs until you get approval from your insurance company. Your insurer might not fully reimburse you for permanent repairs made without their authorization.

  • Do research: Find businesses you can trust on BBB.org. Get referrals from friends and relatives.

  • Resist high-pressure sales: Some storm chasers tell you you’ll only get a good deal if you hire the contractor on the spot. Be proactive in picking a contractor and not reactive to sales calls or door-to-door pitches. Research them thoroughly and shop around before making a decision. You should never feel forced to make a hasty decision or to choose an unknown contractor.

  • Be especially careful of door-to-door contractors: Ask for identification. Check for a business name, phone number and state license plate.

  • Don’t sign over insurance checks to contractors: Get an invoice from the contractor and pay him or her directly (preferably with a credit card, which offers additional fraud protection). Don’t sign any documents that give the contractor any rights to your insurance claims. If you have questions, contact your insurance company or agent.

  • Be wary of giving access to some places: While most contractors abide by the law, be careful allowing someone you don’t know to inspect your roof and other areas of your house that you cannot easily access or see for yourself. That includes attics, crawl spaces and ducts. An unethical contractor may create more damage to get work.

  • Ask about preventive features and installations: Check with your contractor about adding tornado-resistant features to help protect against future damage.

Rental scams

If Monday’s storms damaged your home, you may have to bunk somewhere else while repairs are made.

Keep in mind that scams happen frequently with rental and vacation property listings, especially after disasters. Scams can appear on websites like Craigslist, Zillow, Trulia, Realtor.com, Homes.com, Apartments.com, Facebook Marketplace, Airbnb, VRBO and HomeAway.com.

According to the BBB, 43% of online shoppers have encountered a fake listing, and more than 5 million consumers have lost money to rental scams.

Most commonly, fraudsters copy the photo and description of a property, post it online with their own contact information, and try to get a deposit and first month’s rent from a victim. They may communicate only by email or text message and may claim to be out of the country and unavailable to show the property. Once you send money, the fraudster disappears.

You shouldn’t rush into paying upfront fees for renting housing sight-unseen, the BBB says. Instead, take time to verify the details of listings.

If you are the victim of a rental scam:

  • File a report with local police.

  • Go to BBB.org to view a business’ BBB Business Profile, including complaints and reviews, or to file a complaint or report a scam on Scam Tracker.

  • Contact the Federal Trade Commission at ftc.gov/complaint or by calling 877-FTC-HELP.

  • File a complaint with the Internet Crime Complaint Center.

Price gouging

Be on the lookout for price gouging. The cost of high-demand products skyrockets during times of emergencies such as severe storms. The Better Business Bureau says it receives reports of high prices on gas, water and hotel rooms after a natural disaster.

If you suspect price gouging, report it to Better Business Bureau by filing a complaint, or go to BBB Ad Truth. You can also report it to the Texas Attorney General’s Office. In reporting a complaint, follow these three tips:

  • Be as specific about the transaction as possible: Include the name and address of the business, names of any employees involved, and information detailing the spike in pricing.

  • Gather documentation: Have receipts, photos of products and their advertised pricing, invoices, etc. supporting the price gouging.

  • Compare pricing: Compare similar products with other sellers in the area, as well as online. It’s important to note similarities and differences between brands, size/quantity, manufacturers, model numbers and prices.

Charity scams

Scammers often take advantage of vulnerable moments to deceive donors. The BBB encourages people to give thoughtfully and avoid those seeking to take advantage of generosity:

  • Visit Give.org to verify whether a charity meets the BBB Standards for Charitable Accountability. An established charity will more likely have the capacity and experience to address the situation quickly and also have a track record that can be evaluated. A newly formed organization will be more difficult to check out.

  • Take the time to find out how the organization plans to help victims. See when the collected funds will be used. Watch out for vague appeals that don’t identify the intended use of funds.

  • Watch out for claims that 100% of donations will assist victims. The organization is probably still incurring administrative and fundraising expenses, even if it is using other funds to cover these costs.

  • Some crowdfunding sites do little vetting of individuals who post for assistance after a disaster. It is always safest to contribute to individuals that you personally know. If the post claims it intends to contribute funds to a charity, consider donating directly to the charity’s website.

  • Don’t click on links to charities on unfamiliar websites or in text messages or email. They may try to steal personal or financial information. Don’t assume that charity recommendations on social media have already been vetted.

Impostor scams

Some scammers try to trick you out of your money and/or personal information by pretending to be someone else. They can contact you by phone, text or email. They may impersonate a family member or friend asking for help in an emergency, or pretend to be working for the government or a company you regularly do business with.

How to avoid impostor scams:

  • Stay calm: If you receive an impostor call, don’t act immediately, no matter how dramatic the story is or how threatening or intimidating the caller sounds.

  • Don’t reply directly: Don’t respond to the call, text or email. Instead, call the company or person directly to verify the message, call or email.

  • Tell someone or get help: When in doubt, call a friend, loved one or local BBB to ask for a second opinion.