By Paul Dashevsky
As winter storms and severe weather tear through communities, a second and far less visible crisis is unfolding. Homeowners rushing to repair roof damage, flooding, burst pipes, and structural issues are being targeted by contractor scams that are leaving families tens of thousands of dollars in debt and homes unfinished. This is not hypothetical. It is happening right now and at scale.
Recent investigations show that storm related contractor fraud is accelerating nationwide. In one state level case alone, more than 40 homeowners were defrauded out of nearly $5 million after contractors collected large upfront payments and abandoned projects mid repair. Federal Trade Commission data shows more than 81,900 reports of home improvement fraud, with losses exceeding $150 million nationwide, and consumer advocates say storm recovery consistently produces the highest dollar losses.
Storms create the perfect conditions for fraud. Demand spikes overnight. Insurance deadlines loom. Families feel pressure to act immediately. Bad actors exploit that urgency with low bids, vague contracts, and demands for cash upfront. Once work begins and gaps surface, homeowners have little leverage left. Industry experts warn that many of the worst losses are tied not to obvious scams, but to incomplete or misleading repair bids signed under pressure. Critical scope items like demolition, water mitigation, permitting, or structural work are often omitted, leading to massive cost overruns or abandoned projects once funds are exhausted.
It’s crucial to remain vigilant…homeowners should not sign anything right away and should not pay anything immediately. These unscrupulous individuals rely on fear and urgency to compel emotional homeowners to make rash decisions, often disappearing after taking their money. Instead, prudent time should be taken to research, evaluate and hire a trustworthy contractor. With over 20,000 licensed contractors in Los Angeles County, there are plenty of qualified professionals available to complete your repairs without suffering high-pressure tactics.
Selecting a Reputable Fire Repair Contractor
Even though anyone with fire or smoke damage is understandably in a hurry to make repairs, it’s essential to exercise caution when choosing a contractor. The last thing you want is to hire an unreliable contractor who adds to your stress. Take the time to meet with several contractors and perform a thorough vetting process to ensure they are reputable.
Follow these key steps when vetting contractors:
- Confirm they have a valid general contractor’s license with no consumer complaints.
- Verify they carry at least $1 million in liability insurance and an active worker’s compensation policy.
- Research their online reviews to gauge their reputation and reliability.
- Contact references or past clients to learn about their experiences with the contractor.
Be aware of these red flags:
- Contractors going door-to-door seeking work or using high-pressure sales tactics.
- Offers to “kick back” a portion of the insurance proceeds if you hire them—this is insurance fraud.
- Requests for large upfront deposits to “hold your job.”
- Aggressive sales tactics to get you to sign a contract immediately.
20-Point Checklist for Vetting Home Repair Contractors
The following checklist will help homeowners ensure contractors are well-vetted, promoting transparency, accountability, and high-quality work.
- Does the contractor commit to responding to calls, messages, texts, and emails within 24 hours?
- Will the contractor provide regular, timely, and honest communication, including identifying a primary contact person?
- Does the contractor offer a detailed written scope, contract, and schedule for the project?
- Will the contractor advise in writing about any extra charges or change orders, including pricing, and wait for written homeowner approval before starting?
- Does the contractor agree to alert the homeowner immediately about any potential quality issues and discuss solutions?
- Will the contractor notify the homeowner in advance of any potential delays (e.g., materials, weather)?
- If quality issues arise, does the contractor commit to resolving them in a mutually agreeable manner?
- Can the contractor provide guidance and expertise regarding materials while respecting the homeowner’s final selection decisions?
- Does the contractor maintain a clean, safe, and organized work site throughout the project?
- Will the contractor use materials that are up to code and meet industry standards?
- Is the contractor’s license, insurance, and bond current and valid for the project duration?
- Does the contractor agree to secure necessary permits, pass inspections, and ensure all work meets building codes?
- Will the contractor collect reasonable deposits and tie further payments to percentage completion milestones?
- Does the contractor provide a minimum one-year warranty on the completed project?
- Are charges for extras or change orders based on true costs, and will the contractor allow the homeowner time to verify estimates?
- Does the contractor commit to not prioritizing other projects at the expense of delays to the homeowner’s project?
- Will the contractor avoid overcommitting to too many projects that could lead to delays?
- Does the contractor guarantee a consistent crew presence on the job site every weekday for eight full hours, barring holidays or special circumstances?
- Are the contractor’s workers experienced in the specific trades required for the homeowner’s project scope?
- Does the contractor hire only qualified and experienced subcontractors with applicable licenses and insurance?
Disasters often attract unscrupulous contractors who exploit vulnerable homeowners, using high-pressure tactics to secure deposits and contracts without delivering promised services. Homeowners are urged to remain cautious, research potential contractors and avoid signing agreements or making payments under duress.
Due diligence is key. This includes verifying contractors’ licenses, insurance, and references; and being alert to scam warning signs like door-to-door solicitations, large upfront deposits, or offers to manipulate insurance proceeds. For greater peace of mind, it’s optimal to dig deeper and procure a comprehensive assessment report for every contractor you meet, which should detail essential information about the contractor’s experience, credentials and client satisfaction. When possible, obtain verified homeowner feedback describing what they liked most about their contractor. Such all-inclusive assessment reports can help homeowners confidently compare contractors and make the best decision for their home repair or improvement project.
At the very least, the 20-point checklist above can help homeowners thoroughly vet contractors, ensuring transparency, accountability, and high-quality repairs that alleviate stress rather than compound it. By taking the time to thoroughly assess potential contractors, homeowners can best safeguard their investments and ensure their repairs are handled with professionalism and care.
With several decades of experience in the construction and renovation business, Paul Dashevsky is Co-CEO of GreatBuildz.com—a free service that matches homeowners with reliable, pre-screened general contractors. The company, which exclusively connects homeowners with reputable contractors who have successfully passed the its rigorous screening process, also avails free access to its BidCompareAI—a home renovation contractor bid comparison tool leveraging artificial intelligence to instantly reveal hidden costs, inconsistencies across bids, lack of transparency and more for true “apples-to-apples” comparisons.
GreatBuildz also provides an array of other resources for those wanting to repair or rebuild their home, including Remodeling Advisors for those needing guidance and support for any repair or issue. Paul is also Co-CEO of MaxableSpace.com, an industry-leading accessory dwelling unit (ADU ) design / build / manage platform.
Data Sources
Federal Trade Commission Home Improvement Scams
Insurance Information Institute Winter Storm Loss Data
Better Business Bureau Contractor Scam Alerts
Thank you,
Glenda, Charlie and David Cates
