Louisiana commissioner warns against contractor fraud after Hurricane Francine

Louisiana Insurance Commissioner Tim Temple is warning residents to be aware of contractor fraud in the wake of Hurricane Francine.

Large storm events such as hurricanes provide an opening for rogue service providers to take advantage of homeowners, Temple said. The commissioner added that the cost of insurance fraud appears in policyholders’ insurance premiums.

“If you need to file a claim, contact the insurer first,” Temple said. “Make sure you hire reputable contractors during the recovery process and be wary of anyone you haven’t contacted offering to work on your home.”

The Louisiana Department of Insurance advises policyholders on how to avoid contractor fraud. Some tips include:

• Assess the damage: If you think you have catastrophe-related damage, contact your insurance company and ask for clarification on your coverage.
• Hire a professional: Look for a licensed, insured, and well-rated contractor before any potential fraudulent contractors come knocking on your door.
• Watch out for red flags: Watch for red flags such as high-pressure sales tactics, vague or evasive answers, or reluctance to provide written estimates or contracts. Trust your instincts and proceed with caution if something seems off.
• Written contracts: Always insist on a written contract detailing the scope, materials, timing, and a payment schedule that doesn’t include large upfront payments. Review the contract carefully, making sure all terms and conditions are clearly outlined and agreed to by both parties.

TOPICS
Catastrophe Natural Disasters Fraud Louisiana Hurricane Contractors