The Michigan Department of Insurance and Financial Services is warning consumers about fraudulent home repair contractors after extreme weather rocked southwestern Michigan earlier this month.
In a statement, the department warned of "fraudsters claiming to be adjusters, contractors, and other service providers often go door-to-door or call claiming to offer services, like debris cleanup or home repairs."
Anita Fox, the department's director, said the contractors often cost homeowners money at a vulnerable time. "At the end of the day, work might not get done at all. It might get done poorly or you may get a bill for way more than you were expecting," she said.
Fox says these scams are fairly common. "There were tree-cutting companies and debris removal companies and contractors pulling the same kind of scams on unsuspecting homeowners who are just trying to get their lives back in order."
The department said scammers have been known to pressure homeowners into signing contracts, state they work for a specific insurer or the government, and refuse to provide ID. They often ask for cash or cash advance, or use mobile payment services.
The department recommends getting "at least three written estimates" for a job from different contractors. Officials also advised checking for licensing and credentials. Fox suggested checking with Licensing and Regulatory Affairs.
In its statement, the department also recommended homeowners contact insurers and verify that a contractor or adjuster is associated with them, as well as getting a transparent contract with cost and a timeline with no blanks that can be filled in later.
Fox emphasized avoiding feeling feeling pressured or rushed. "You may want to just rush in and get it taken care of, but don't. Be careful, because there are people out there who want to take advantage of people during a difficult time."
