Florida’s Insurance Consumer Advocate & Insurers Share Tips to Protect Disaster Victims from Contractor Fraud & Abuse Following Hurricane Milton

TALLAHASSEE, Fla. - As Floridians begin the process of repairing, rebuilding, and recovering from Hurricane Milton, Florida's Insurance Consumer Advocate (ICA) Tasha Carter and the American Property Casualty Insurance Association (APCIA) urge homeowners to watch out for fraudsters and scammers trying to involve themselves in the claims or damage repair process. The ICA and APCIA's Prevent Contractor Fraud and Abuse Guidecan help disaster victims learn how to spot and stop contractor fraud and abuse and follow best practices for hiring a contractor to assist with repairs.

"While contractors play an integral role in the building and repair process and most are legitimate, there are others looking to take advantage of homeowners in vulnerable situations. Far too often, fraudsters and scammers come to town to take advantage of storm victims in desperate need of repairs. Floridians must keep their guard up and be wary of individuals going door-to-door offering to inspect for damage or make repairs. Working with untrustworthy or unlicensed contractors can delay the recovery process," said Tasha Carter, Florida's Insurance Consumer Advocate.

Homeowners need to remain vigilant and watch for red flags, such as someone showing up at their door unsolicited using high-pressure sales tactics and demanding payment upfront.

"Insurers are deploying all available resources to help their customers begin the recovery process and want to prevent their customers from falling victim to any scams or fraudulent activity. That's why we encourage all policyholders to work closely with their insurer throughout the claims process and to lean on their adjuster when they have questions or concerns," said Logan McFaddin, vice president of state government relations for APCIA.

Florida's ICA and APCIA offer the following tips to help prevent homeowners from falling victim to contractor fraud and abuse.

1. Be alert and know the warning signs.Be on the lookout for unsolicited offers to inspect or repair your roof. Be cautious of contractors who try to pressure you into signing a contract and require cash for a down payment or full payment upfront.
2. Contact your insurer first.File your claim first and let your insurer verify what repairs are necessary before signing any contracts. Then find a licensed contractor to make the repairs. Your insurer can help you identify licensed contractors in your area.
3. Verify insurance and licenses. Make sure the contractor you hire has liability and workers' compensation insurance and check to see if the contractor has a legitimate local address. Florida residents should check the Florida Department of Business and Professional Regulation(DBPR) website to be sure the contractor is licensed and bonded.
4. Get three bids and check references.Get three written, itemized estimates for the work and compare the bids. Require the contractor to provide you with references and contact those references to verify the work was done on time and completed in compliance with the current building code.
5. Check for complaints.Florida residents should check with Florida DBPR or the Better Business Bureau to see if complaints have been filed against the contractor.
6. Never pay in full upfront.Most contractors will require a reasonable down payment, but never pay in full upfront and do not pay in cash. Make sure you have a detailed written contract in place before paying anything. Pay for the work in installments as the job is completed and use a check or credit card so that you have a record of payment. Verify that the work was done before paying the invoices.
7. Get a written contract.Always get a written contract that clearly states everything the contractor will do, including prices for labor and materials. Make sure the contract includes clean-up procedures and estimated start and completion dates. Never sign a contract with blanks that can be filled in later by the contractor. Ensure you understand the contract prior to signing; seek assistance from a trusted friend or relative, if needed. To ensure a contract complies with state law, take advantage of Chief Financial Officer Jimmy Patronis' free Check My Contractservice.

The ICA/APCIA Prevent Contractor Fraud and Abuse Guideprovides more detailed information and tips.

Additional APCIA & ICA Resources

Demolish Contractor Fraud: Steps to Avoid Falling Victim(ICA)

Flood Insurance: Know What to Do After A Flood (ICA)

Hurricane Resources: Your Guide to Recovery(ICA)Hurricane Preparedness & Recovery(APCIA)

Navigating the Claims & Recovery Process FAQs (APCIA)