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If your home or business has suffered some sort of significant damage, perhaps from fire or, as many did during the recent east coast weather phenomena -- from the earthquake in Virginia to tropical storm Lee (and don't forget Hurrican Irene), then you are probably in the process of scheduling repairs. The Federal Emergency Management Agency (FEMA) warns to be careful when choosing contractors for repair jobs. Otherwise, you could find yourself a victim still again.

Be wary of any so-called "Contractor" who appears at your door and offering to take care of your repairs and asking you to sign a contract immediately.  Check very carefully before using a contractor who seeks jobs by going door-to-door or handing out flyers. If this "contractor" requires a large up-front deposit or asks for full payment in advance, then be skeptical.  Why? If your "contractor" turns out to be an unscrupulous scam artist and you have paid a large amount up front, chance are that they will begin the job but then disappear before the work is done.

It should raise a red flag in your mind if a contractor wants to do initial, temporary repairs at a large cost before getting on with the permanent repairs.  The Insurance Information Institute (III) reminds us that the insurance settlement paid to you will typically be intended to cover all repairs for a given loss -- both initial temporary repairs if/as necessary and permanent repairs. So, if you use a large part of your settlement funds on a temporary fix, then paying for the permanent repair job may be impossible.

See more advice from III: Beware Crooked Contractors (Video).

Then how can you be sure that you are working with a reputable, honest contractor before you sign any contract to have repair work done?  Your best assurance will come from working with a contractor you already know or who has been recommended by someone you trust who has first-hand sknowledge of their work. In fact, you might try asking your insurance agent who will likely be able to refer someone who is reliable. You might also check with your local building/trade associations for a referral. If you must work with someone you don't know, then be sure to check references.

Whether you are a disaster victim or simply a business owner or homeowner whose property needs repairs, if you will be working with contractors, consider the following tips:

• Look into the contractor’s reputation with the local builder/trade organizations or the Better Business Bureau. In particular, you’ll want to know whether the contractor’s record shows complaints filed.
• Get it in writing!
  • Require a Certificate of Insurance from the contractor, assuring that the firm has active coverage for workers' accidents or injuries through workers compensation and disability insurance. Otherwise, you could be liable for such accidents on your property.
  • Ask for a written job estimate that includes all the work you expect the contractor to do. It should also show taxes or other fees. In some cases, a contractor may charge you for the estimate.

  • Obtain a written contract and don't sign a contract that is not specific and comprehensive -- showing all tasks to be performed, all associated costs and payment schedule.

  • Ask for a written guarantee that lays out exactly what is guaranteed and includes any restrictions or stipulations, and be sure it includes a stated duration for the guarantee.

• Be sure to establish with your contractor just whose responsibility it is to obtain all permits and licenses related to your job.

• Make your payment by check or credit card, but never pay with cash.
• Be sure to read carefully any contract cancellation clauses. You should be able to cancel a contract within a specified number of business days of signing.

If you have a property damage loss, whether due to storm damage or something else, be sure to contact your insurance agent as soon as possible to discuss your options and receive assistance.

Here at Patterson Insurance Management, Inc, we have helped many of our policyholders recover from losses with as little discomfort as possible.  Why not contact us at your convenience to discuss how to be best prepared for damage to your home or commercial building.