AGENT CENTER INSURANCE NEWSROOM BLOG ABOUT US CONTACT US LOG IN YOUR POLICY CLAIMS INFORMATION CENTER Search CATEGORIESARCHIVERESOURCES Get a Free Quote For a Free Quote, please contact our Customer Service Department at (866) 568-8922. FIND AN AGENT EDISON BLOG CONTRACTOR FRAUD: WHAT IT IS AND TIPS TO HELP AVOID IT CATEGORY: GENERAL, HOME AND PERSONAL SAFETY, HOME MAINTENANCE 11.01.2021 No Comments Share When you experience home damage, especially to critical areas of your home like the roof, you probably want a contractor to come out and fix it immediately. However, there is good reason to hold off until you find a trustworthy and reliable contractor. Why? Although most contractors aim to provide quality services, you still run the risk of encountering a few who may engage in contractor fraud. Here we explain what contractor fraud is, warning signs of contractor fraud, as well as give you tips to help you avoid common scams. WHAT IS CONTRACTOR FRAUD? Contractor fraud occurs when individual contractors or contracting firms hired to repair, renovate, or build residential or commercial properties knowingly offer misleading services, such as charging more than a contract is worth or performing unsatisfactory work. This usually results in negative consequences for homeowners and could lead to additional repairs and expenses because of poor workmanship or fraudulent charges. TIPS FOR AVOIDING COMMON CONTRACTOR SCAMS Here are a few common contractor scams and how to avoid them. 1. REQUESTING FULL PAYMENT UPFRONT This is one of the biggest giveaways when it comes to contractor fraud. Your contractor asks for full payment upfront to order the materials and equipment needed for the job. After this, they go missing with your money, continue to delay your project for months or perform unsatisfactory work. How To Avoid This Scam: Never pay more than the legal maximum in your state upfront. Usually, this will be no more than 10% of the contract total. The only purpose of an advance is to establish you as a serious customer and the contractor can work you into their schedule. As for material and equipment costs, remember, if your contractor is reputable, their suppliers will provide materials to them on credit. 2. ENCOUNTERING UNFORESEEN PROBLEMS AND REQUIRING ADDITIONAL PAYMENT Another warning sign of contractor fraud could be your contractor encountering serious, unexpected issues like plumbing problems or termite damage – after they’ve started the job. Your contractor then requests significant payment to fix the problem, leaving you with no choice but to pay to keep the project going. How To Avoid This Scam: Before you sign a contract, make sure it includes a process for change orders, which are mini contracts containing a project description and a fixed price for any tasks you add to the contract. This extra work should only occur after both the homeowner and contractor both sign off on the change. 3. USING MATERIALS LEFTOVER FROM PREVIOUS JOBS You should be wary of contractors who claim they can offer you a great deal by performing the job with materials leftover from previous jobs. How To Avoid This Scam: Do not hire contractors on the spot. Be sure to check your contractor’s background to make sure they are reputable and perform quality work. 4. OFFERING FREE INSPECTIONS Many legitimate contractors won’t charge you for an estimate, but you should still be on guard. Especially with the elderly, look out for contractors who perform inspections in areas of your home you can’t easily access, such as attics or crawl spaces. How To Avoid This Scam: Be sure to pay extra attention to your contractor’s assessment. Also, it’s a good idea to get more than one estimate. 5. NO CONTRACT Never agree to a job if there is no written contract. How To Avoid This Scam: Always require a written (not verbal) contract including all the details of the job you want and agree to. You and your contractor should sign a written contract agreed to by both parties. 6. LACK OF PERMITS Significant construction and renovation projects require you to have a building permit to ensure your work meets safety codes. Fraudulent contractors may try to get past this requirement, so they don’t have to deal with building inspectors, by not obtaining the required permits or requesting the homeowner apply for the permit with their own name. How To Avoid This Scam: Always ask your contractor to get a building permit, if required. This will result in your local tax assessor being informed about your upgrade, but it filters out unlicensed contractors. MORE GENERAL TIPS FOR AVOIDING CONTRACTOR FRAUD 1. Verify insurance: Make sure to verify if your contractor has the necessary insurance to work in your area. Check with your contractor’s insurance carrier to confirm they have coverage for worker’s compensation, property damage, and personal liability should there be an accident. 2. Prepare for future service issues: Be sure you are well-informed about your warranty coverage and how to deal with future service issues. 3. Get your lien waiver: In the U.S., a lien waiver is a document from your contractor stating they received full payment. 4. Keep your contract: Stash your contract in a safe place just in case you have any questions after the work is finished. BEFORE HIRING A CONTRACTOR, CONTACT YOUR INSURER Doing your due diligence by researching your contractor is the best way to avoid fraud. Be sure to ask for references and trust your gut if you feel anything is off. It’s also important to talk to your insurer before any work is commissioned to make sure it’s within your policy. If you’re not happy with your current policy, be sure to contact Edison Insurance. We can help to customize your homeowners coverage so you have peace of mind. FIRE SAFETY TIPS FOR NATIONAL FIRE PREVENTION WEEK CATEGORY: HOME AND PERSONAL SAFETY 10.03.2021 No Comments Share National Fire Prevention Week, serves to educate us about the importance of fire safety. Fires can occur anywhere and at any time. In fact, the NFPA reports U.S. fire departments respond to a home fire every 86 seconds. READ MORE WHAT IS A HOME INSURANCE SCORE, AND HOW DOES IT AFFECT YOUR PREMIUMS? CATEGORY: GENERAL, HOMEOWNERS INSURANCE 101 10.03.2021 No Comments Share Read on to find out what a home insurance score is and why it will affect the amount you pay for your home insurance policy. READ MORE TIPS FOR A SPOOKTACULAR AND SAFE HALLOWEEN CATEGORY: HOME AND PERSONAL SAFETY 10.01.2021 No Comments Share We encourage you to keep these tips in mind to ensure a safe Halloween. READ MORE CHIM CHIM CHIMNEY CATEGORY: GENERAL, HOME AND PERSONAL SAFETY 09.25.2021 No Comments Share Maintaining a clean and well-groomed chimney chute can be the difference between looking forward to warm winter months roasting marshmallows or sweeping up the ashes from a house fire. As we enter National Chimney Safety Week on September 26th, it is important to keep some chimney safety tips in mind. READ MORE GARAGE CONVERSIONS MEAN EXTRA SPACE - BY EDISON INSURANCE COMPANY CATEGORY: GENERAL 09.01.2021 No Comments Share Converting a garage into an extra room can provide your family with much needed extra space. When considering such a step, you should also take into account the cost of the conversion, the value it will add to the home, and the added insurance needed to adequately protect your contents. READ MORE 3 TIPS TO PREPARE FOR FLORIDA’S RAINY SEASON FROM EDISON INSURANCE COMPANY CATEGORY: WEATHER AND NATURAL DISASTER RESOURCES 08.01.2021 No Comments Share Preparing for Florida’s rainy season can keep your family and home safe while saving you time and money. Secure a flood policy today and know your family will be covered in the event a loss results from rising water. READ MORE ONE OF LIFE’S EMERGENCIES COVERED | EDISON INSURANCE COMPANY CATEGORY: HOMEOWNERS INSURANCE 101 07.01.2021 No Comments Share Homeowners insurance is just considered an additional living expense for most until a loss occurs, and you find yourself asking questions you never even thought of before while facing a multitude of repair costs. Keep your home, valuables, and finances protected with the right homeowners coverage in place. READ MORE WE GOT POWER | EDISON INSURANCE COMPANY CATEGORY: WEATHER AND NATURAL DISASTER RESOURCES 06.01.2021 No Comments Share Our modern-day world runs on power as our homes, modes of communication, medical services, and everyday conveniences rely on electricity. When we lose access to electricity due to a storm, our daily routines come to a grinding stop. However, proper use of generators can provide temporary use of those devices and appliances we now consider necessary. READ MORE WHAT’S IN A HURRICANE NAME? | EDISON INSURANCE COMPANY CATEGORY: WEATHER AND NATURAL DISASTER RESOURCES 05.01.2021 No Comments Share The 2021 Atlantic Hurricane season is predicted to be very active. Since adopting short distinctive names, tracking the path of storms has become easier for meteorologists and the general public. What is in a name, has dramatically impacted the way information on tropical storms and hurricanes is communicated. 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