exas experienced an active spring storm season and now hurricane season is upon us. As a Germania policyholder, should you incur damage to your home, it is important to take steps to ensure you don’t become the victim of another calamity: claims fraud. Some “Storm Chasers” are shady contractors exploiting people after a natural disaster. Like mushrooms after a rainstorm, these fraudsters appear after every flood or hurricane, ready to take advantage of those in need. Here are ways to recognize their tactics and avoid becoming one of their targets. Do Not Sign a Repair Contract Under Pressure Your roof is gone, your belongings are ruined and you want your house fixed as soon as possible. If a contractor pressures you to sign a repair contract immediately, that’s a sign of possible fraud. If someone offers you a “free” estimate and wants you to sign a contract, that’s another red flag. Do Not Pay in Cash A legitimate contractor is not going to ask for the full payment amount before work is done. Never pay a contractor in cash or give them the entire payment in the aftermath of a hurricane or similar catastrophic event. Instead, arrange a payment schedule as you would with any other contractor and do not make a final payment until all work is completed properly. Get everything in writing, beyond the cost. The contractor should supply a timeframe for repairs and should guarantee their work. Whatever you do, never sign a blank document given to you by a contractor. This is how storm chasers get
victims to unwittingly sign dubious agreements giving them 20 percent or so of the insurance claim amount. If there are blank lines on any contract, mark through them so the contractor cannot alter the document. Do Your Research When you’re dealing with significant damage, all you want is your home restored as quickly as possible. However, doing your research is especially critical at this time. If possible, deal with local contractors whose reputation is well-known. Ask neighbors or friends for recommendations. You can even ask your insurance company, as they are familiar with reputable contractors in your area. The Better Business Bureau is also a good source for checking out a contractor’s history and reputation. Even in the midst of a disaster, the advice regarding getting more than one bid still holds true. If there is a great difference in the estimates, it is likely one contractor is trying to overcharge you. Report Your Claim Immediately It is imperative to report your storm damage claim to Germania as soon as possible. Germania’s direct number to the Claims team is 1-877-437-6264. Or visit our website at www.germaniainsurance.com/claims/ report-a-claim/ to report a claim. The claims adjuster will determine the damage to your dwelling adn review this with you, so you will have a better idea of what needs repair and the accuracy of a contractor’s estimate.
Summer 2019 | 5
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