SC Department of Insurance Offers Tips to Avoid Getting Scammed

South Carolina Department of Insurance
Columbia, S.C. – After a disaster, fraudsters and scam artists often arrive quickly. Sometimes, they even come from out of town to take advantage of people. SC DOI Director, Michael Wise, offers the following tips to avoid
getting scammed:
• Make sure the contractor you hire for home repairs is legitimate. Check online reviews and find out if there are complaints against the contractor with the Better Business Bureau. Ask for references. FEMA does not certify or endorse contractors. Any contractor who claims they are FEMA certified is lying. Be sure and communicate with your insurance company before starting any work.
• Know the warning signs of a shady business. A reputable business will not pressure you to make a quick decision, nor will it ask you to pay money upfront. If a contractor tries to rush you into making a quick decision, recognize that as a red flag. A reputable contractor will not pressure you. Beware of contractors that go door-to-door trying to get your business. Don’t pay in full upfront. Pay in installments with a check or credit card to leave a record of your payments. Get an invoice and a receipt.
• Get an estimate from at least three different contractors. An estimate from a contractor that’s much lower than any of the others doesn’t mean it’s the best deal. Make sure all the quotes include the same things, and check references.
• Get a written contract. The contract should include every task and repair the contractor plans to make. It should also include start/finish dates and prices for repairs and materials. Do not sign a blank contract, as a contractor can fill it in later with whatever information they want.
• Be cautious about signing an assignment of benefits (AOB), an agreement a policyholder signs that allows a third party, such as a contractor or public adjuster, to act on behalf of the insured. AOBs allow direct payment from the insurance company. And finally, before you hire someone, get the following information:
• A copy of the contractor’s identification that shows the contractor’s name and business name.
• A copy of the contractor’s business license. Make sure it is not expired.
• A copy of the contractor’s proof of liability insurance. Make sure it shows the company’s name, phone number, and the policy number. Call the insurance company to verify the coverage.
• A copy of the contractor’s proof of workers’ compensation insurance.
Consumers are encouraged to contact the South Carolina Department of Insurance’s Office of Consumer Services at 803-737-6180 or visit doi.sc.gov for more information and for helpful tips on navigating the claims process.
• A copy of the contractor’s proof of liability insurance. Make sure it shows the company’s name, phone number, and the policy number. Call the insurance company to verify the coverage.
• A copy of the contractor’s proof of workers’ compensation insurance.
Consumers are encouraged to contact the South Carolina Department of Insurance’s Office of Consumer Services at 803-737-6180 or visit doi.sc.gov for more information and for helpful tips on navigating the claims process.
Flood insurance policyholders should contact their agent or the NFIP directly to report flood claims at 1-800-427 4219 or visit www.floodsmart.gov for additional information on the NFIP claim process. To report fraud, call 1-800-95-FRAUD.