Don’t Be a Victim: Prevent Contractor Fraud and Legal System Abuse in Florida
Securing Our Future is working to empower Floridians with the knowledge and resources to help prevent them from falling victim to contractor fraud and abuse, especially after a disaster.
While contractors play an integral role in the building and repair process and most are legitimate, there are others who are looking to take advantage of homeowners in vulnerable situations after a disaster. Homeowners need to watch for red flags, such as someone going door-to-door using high-pressure sales tactics and demanding payment upfront. Through abusive and fraudulent practices, some contractors and other bad actors take advantage of processes such as an Assignment of Benefits (AOB), which allows them to scam not only the homeowner, but also the homeowner’s insurance company. These practices hurt Floridians and abuse our civil justice system.
Take Action Now: HB 837 / SB 236 takes direct aim at fraudulent practices involving Assignment of Benefits and other legal system abuse. Write to your legislators today asking them to vote YES on HB 837 / SB 236 to help stop these abusive practices.
Tips for Preventing Contractor Fraud and Abuse
- Be alert and know the warning signs.
Be on the lookout for unsolicited offers to inspect or repair your roof. Be cautious of contractors who try to pressure you into signing a contract and require cash for a down payment or full payment upfront.
- Contact your insurer first.
File your claim first and let your insurer verify what repairs are necessary before signing any contracts. Then find a licensed contractor to make the repairs. Your insurer can help you identify licensed contractors in your area.
- Verify insurance and licenses.
Make sure the contractor you hire has liability and workers’ compensation insurance and check to see if the contractor has a legitimate local address. Florida residents should check the Florida Department of Business and Professional Regulation (DBPR) website to be sure the contractor is licensed and bonded.
- Get three bids and check references.
Get three written, itemized estimates for the work and compare the bids. Require the contractor to provide you with references and contact those references to verify the work was done on time and completed in compliance with the current building code.
- Check for complaints.
Florida residents should check with Florida DBPR or the Better Business Bureau to see if complaints have been filed against the contractor.
- Never pay in full upfront.
Most contractors will require a reasonable down payment, but never pay in full upfront and do not pay in cash. Make sure you have a detailed written contract in place before paying anything. Pay for the work in installments as the job is completed and use a check or credit card so that you have a record of payment. Verify that the work was done before paying the invoices.
- Request a final payment affidavit.
Prior to making a final payment, ask the contractor to provide a final payment affidavit, which they are required by law to provide, to verify the contractor has paid all subcontractors and suppliers. If dept remains unpaid, Florida law allows subcontractors and suppliers to place a lien on your home.
- Get a written contract.
Always get a written contract that clearly states everything the contractor will do, including prices for labor and materials. Make sure the contract includes clean-up procedures and estimated start and completion dates. Never sign a contract with blanks that can be filled in later by the contractor. Ensure you understand the contract prior to signing; seek assistance from a trusted friend or relative, if needed.