Calif. Authorities Warn of Getting Soaked by Fraudulent Contractors Following Storms

As the damage from the recent California storms is tallied, a new peril threatens homeowners — con artists posing as contractors and public adjusters. These criminals come out of the woodwork after disasters, preying on homeowners with offers of cheap labor and a quick fix for their damage.

But for homeowners seeking storm repairs or needing help filing insurance claims, hiring unlicensed contractors or public adjusters can be an expensive mistake.

In the worst cases, shady contractors can disappear with the homeowner’s down payment or provide unsafe repairs. Unlicensed public adjusters can also promise more than the insurance policies cover. A promise from anyone for more money or services than what is specified in a policy could be an invitation to commit insurance fraud, a felony that costs consumers up to $30 billion a year.

A call to one’s insurance agent or company can determine if the insurance covers storm damage. One’s insurer may also recommend the appropriate course of action, as well as licensed contractors with a proven track record of disaster repair.

California law requires contractors who perform work worth more than $500 be licensed, bonded and provide customers with proper recourse if they are dissatisfied. Public adjusters must also be licensed by the state and adhere to rules established by the California Department of Insurance.

Homeowners seeking repairs can check a contractor’s license status and verify qualifications online at the Contractors State License Board (www.cslb.ca.gov) or by calling (800) 321-CSLB. The agency recommends that consumers pay no more than 10 percent of the contract price or $1,000 as a down payment and receive a written contract verifying payment schedule and completion date.

Public adjusters’ licenses can also be checked by calling the CDI at (800) 927-HELP.

Topics California Fraud Windstorm Homeowners Contractors