Protect Yourself from Home Repair Scams

There’s no doubt about it, incidents of fraud—including home repair fraud—are on the rise.  To protect yourself, please use extreme caution when confronted with the following warning signs of a potential scam:

• Door-to-door salespeople with no local connections who offer to do home repair work for substantially less than the market price.
• Solicitations for repair work from a company that lists only a telephone number or a post office box number to contact, particularly if it’s an out-of-state company.
• Contractors who fail to provide references when requested.
• People who offer to inspect your home for free. Don’t admit anyone into your home unless he or she can present authentic identification establishing his or her business status. When in doubt, don’t hesitate to call the worker’s employer to verify his or her identity.
• Contractors who demand cash payment for a job or ask you to make check payable to a person other than the owner or company name.
• Offers from a contractor to drive you to the bank to withdraw funds to pay for the work.

Contract Tips

• Get all estimates in writing.
• Don’t be coerced into signing a contract by high-pressure sales tactics.
• Never sign a contract with blank spaces or one you don’t fully understand. If you are taking out a loan to finance the work, don’t sign the contract before your lender approves the loan.
• You have three business days from the time you sign your contract to cancel any contract if the sale is made at your home. The contractor cannot deprive you of this right by initiating work, selling your contract to a lender or any other tactic.
• If you’re planning to file a claim with your insurance company to pay for the work, you may cancel the contract in one of two ways, whichever occurs first: (1) within five business days after receiving written notice from the insurance company denying your claim; or (2) within 30 days after you sent a claim to the insurance company.
• If the contractor does business under a name other than the contractor’s real name, the business must either be incorporated or registered under the Assumed Business Name Act. Check with the Secretary of State to see if the business is incorporated or with the county clerk to see if the business has registered under the Act.
• Homeowners should check with local and county units of government to determine if permits or inspections are required.
• Determine whether the contractor will guarantee his or her work and products.
• Determine whether the contractor has the proper insurance.
• Don’t sign a certificate of completion or make final payment until the work is done to your satisfaction.

If you have questions about potential claim-related home repairs or to learn more about the best fit coverage for your home, auto, life and business, contact the independent insurance agents at Forest Insurance at 708-383-9000, or visit us at www.forestinsured.com.

Content taken from the Illinois State Attorney General pamphlet “Home Repair: Know Your Consumer Rights.” Visit www.illinoisattorneygeneral.gov for more detailed information.