Louisiana Commissioner Warns Against Contractor Fraud Post-Hurricane Francine

Louisiana Insurance Commissioner Tim Temple is warning residents to be aware of contractor fraud following Hurricane Francine.

Large storms events such as hurricanes provide an opening for dishonest services providers to take advantage of homeowners, Temple said. The commissioner added that the cost of insurance fraud shows up in policyholders’ insurance premiums.

“If you need to file a claim, contact your insurer first,” Temple said. “Make sure you hire reputable contractors during the recovery process and be wary of anyone you did not contact offering to do work on your home.”

The Louisiana Department of Insurance is offering advice to policyholders on how to avoid contractor fraud. Some tips include:

• Assess Damages: If you think you have catastrophe-related damage, reach out to your insurance company and ask for clarification on your coverage.
• Recruit a Professional: Seek out a licensed, insured and well-reviewed contractor before any potential fraudulent contractors come knocking on your door.
  • Contact the Louisiana State Licensing Board of Contractors to verify the licensure of any contractors you are considering.
• Beware of Red Flags: Be alert to red flags such as high-pressure sales tactics, vague or evasive answers, or reluctance to provide written estimates or contracts. Trust your instincts and proceed with caution if something seems off.
• Written Contracts: Always insist on a written contract detailing the scope of work, materials, timeline and a payment schedule that does not include large upfront payments. Review the contract carefully, ensuring that all terms and conditions are clearly outlined and agreed upon by both parties.

Topics Catastrophe Natural Disasters Fraud Louisiana Hurricane Contractors