North Dakota’s insurance commissioner is cautioning homeowners to be vigilant of contractor scams following some severe weather this summer.
Jon Godfread says these “storm chaser” scammers will often come into communities after severe storms and offer contracting and repair services, many times even offering to pay insurance deductibles in exchange for services. He says they often claim to be approved by FEMA or other government agencies, and offer their services unsolicited with requirements of being paid up front. Godfread says it never hurts to shop around and seek out several quotes from several sources.
"It's always important to shop, so we encourage you to get multiple estimates from multiple different contractors to know just exactly what's going on with your house. It's also important to know - you can work with your insurance company, they generally know who the reputable contractors are in the area, and will be able to recommend some names for you to get that work done. And, never sign a document without fully knowing what's in it so you know what you're agreeing to. Make sure you verify the licenses of individuals; you can always ask them, or we can help you verify that at the Attorney General or Secretary of State's Office."
Godfread says if something sounds too good to be true, it usually is. Last year, insurance companies paid more than $92 billion in catastrophe losses. Of that, ten percent was lost to fraud.