Avoid Another Disaster: Watch Out for Homeowner Insurance Scams

When disaster strikes, it can take its toll on you and your family. Whether you are the victim of a hurricane, wildfire, tornado, or other disaster, it is important for you to not let your guard down.

It is an unfortunate consequence of humanity that there are scam artists and dishonest people out there looking for ways to make your disaster an even bigger problem, just for a few extra dollars. These deviants seek out people who are already grief stricken over losing their homes and valuables, because these grieving people might be thinking a little less clearly. In disasters, first thoughts are not usually on insurance processes and procedures, which makes people prime targets.

It is important in the aftermath of a disaster that you do not make any quick decisions, even if you just want to get everything settled as quickly as possible. Talking with your insurance agent and thinking things through can save you from an even bigger disaster than you've already suffered through.

When hiring service providers to fix the damage caused by a disaster, there are a few basic guidelines for you to follow. The first is to get several written estimates for any job. By consulting several companies and getting a number of estimates, you will be able to assess which company will be the most reliable and cost effective for your repairs. If you get an estimate that is significantly under the other quotes, you should question the validity of the work being done. Many scam artists significantly underbid for the work, because they will probably never get to the point of doing the work. They will just take your money and run.

Gather business cards and references for contractors, and make sure you check references and look at the contractor's track record before you sign any contract. Many scams involve you paying a large deposit prior to work being done, the job is started, and then the contractor disappears. This is why it is so important to check track records and references.

Plus, beware of contractors that want you to spend a lot of money for repairs that are only temporary, as these repairs are included in your total settlement, so you do not want something temporary to leave you unable to pay for the permanent repairs.

Take your time when dealing with attorneys and adjusters, too. When hiring someone to handle your claim, you want to be wary of people going door-to-door to solicit your business. You also don't want to be scared into signing a contract. Many of these individuals come to town just to make a fast buck, resulting in your forfeiting a large portion of your insurance money.

You may also be able to settle your claim directly with your insurance company without an attorney or adjuster, so you may want to wait on hiring an outside counsel. Often your insurance company will provide an adjuster for free, so double check with your insurance provider before hiring a third-party.

However, if you have a complicated claim, then you will want to look into hiring an attorney or public adjuster. You again want to ask for references and make sure they are a well-respected member of the professional community. You can also call your state insurance department to get a list of public adjusters and the state bar association for a list of attorneys. These professionals will cost you money, though, so be prepared to pay about 15 to 30 percent of your total settlement.

When facing the aftermath of a disaster like a tornado, hurricane, or fire, no one really wants to have to face another disaster like a scam. It is important to keep a clear head and not rush into decisions. Thieves are counting on you not being able to think clearly, don't let them. If you take your time and follow some guidelines, you will prevent yourself from facing more than one disaster.

Avoid Another Disaster: Watch Out for Homeowner Insurance Scams

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