Publisher's Note: This post appears here courtesy of the Carolina Journal. The author of this post is Theresa Opeka.
With the weekend's winter storm over, North Carolina homeowners are urged to be on the lookout for scam artists, appearing as contractors, showing up at their door promising to do repair work at a cheap or reduced rate.
"Well, the phones are already ringing," North Carolina Insurance Commissioner Mike Causey told Carolina Journal in a phone interview Monday.
"I know I've had several people tell me they've gotten scam calls this morning or spam."
He said scam artists are more prevalent now because they know that people are staying home and some might be bored and willing to talk to somebody. When the weather clears up, they will go door to door saying that they noticed a problem with your house, maybe the siding or the driveway. He says roofing scams are probably the most common scams out there.
Causey said he recently had a call from an insurance agent in eastern North Carolina that there was a group of people going door to door in one of the upscale housing communities in the northeastern part of the state offering to help get people a free roof, especially if they knew the roof was a little older. In a matter of an hour or so, they had already persuaded people to let them do the repairs.
"The insurance companies are really picky these days about roof conditions, and so I've had comments from people saying, well, I got a letter from my insurance company saying if I don't replace my roof, they're not going to renew my homeowners' policy," he said.
"There are some insurance companies that say if a roof is over a certain number of years old, anywhere from nine years and up, it needs to be replaced. In a couple of counties, I heard some companies wouldn't even write for a home if the roof was over five years old, so that's probably the most extreme I've heard."
Causey said people may also receive a letter from their insurance company stating that they flew a drone over their house and that there are problems with the roof that need to be repaired. Scammers are well aware of this and follow weather events across the country, looking for states where the worst storm damage has occurred, going back as far as three years in some cases.
The insurance commissioner also said that if someone shows up in your driveway with an out-of-state license plate on their vehicle, or in a U-Haul or a rented truck, you can almost be certain it's a scam.
"People can say it appears that there's some damage up there, let us take a look. And if you let them, and there's no damage, they'll create it," he said.
"They'll take these ball peen hammers and bang on the roof to make it appear like there's damage. We've seen them take golf balls, put them in socks, and bang them on the roof shingles to dent them."
Another warning sign, Causey said, is that scammers will always want cash if possible, or a wire transfer, or a transaction from a money app or Bitcoin.
"They'll give you a price, and then they'll say that this is what it would cost, but we will give you a big discount if you can come up with the cash. And so many people fall for that," he told CJ.
"I tell people that if it's a legitimate contractor, they're not going to be going door to door because they're busy already; they're booked up for weeks. So if somebody just shows up uninvited, you need to just think of it as a scam waiting to happen."
Scammers may also have forms called an Assignment of Benefit or AOB printed out when they come to a person's home. Causey said the fine print on the form states that if an insurance company pays a claim and the homeowner signs the form, all the money goes to the contractor. If the homeowner later changes their mind and wants to cancel the agreement or get out of it, a clause in the paperwork says they owe the scam artist some money because they get a percentage of the total job, whether they do the work or not.
When looking for a good roofing contractor or any other contractor, people should check the Better Business Bureau and get references or recommendations from family and friends to ensure the contractor has a good reputation. In addition, make sure they have workers' comp insurance, and they're bonded and insured.
Causey also advises calling to set up an appointment for an estimate and getting at least three different estimates.
Some other helpful tips include:
- Call your insurance agent or insurance company before signing a contract or paying for repairs. Don't let the contractor work directly with your insurance company unless your agent gives approval.
- Get everything in writing. The cost and the type of work to be done, time schedule, guarantees, payment schedule, and other expectations should be detailed.
- Ask to see the salesperson's driver's license. Write down the license number. Also, take down his or her license plate number.
- Never sign a contract with blanks. Fraudulent contractors may later enter unacceptable terms.
- Never pay a contractor in full or sign a completion certificate until the work is completed.
If someone suspects fraud, they can report it anonymously on the insurance department's website at ncdoi.gov or by calling 919-807-6840 or 888-680-7684 (NC Only). They can also send mail to: Criminal Investigations Division, NC Department of Insurance, 1201 Mail Service Center, Raleigh, NC 27699-1201.
Causey also said if someone is having trouble getting a claim paid or resolved, they can call the department's Consumer Services Division Monday-Friday at 855-408-1212.
