How Homeowners Can Protect Themselves Against Stormchasers

In recent years, many homeowners have faced rising insurance rates, often driven by the activities of "stormchasers." These opportunistic contractors prey on vulnerable homeowners after hail/wind storms and other natural disasters, offering quick fixes that often lead to subpar repairs and inflated claims. Protecting yourself from stormchasers not only ensures the integrity of your home, but also helps stabilize insurance premiums for everyone.

Here are some effective strategies to safeguard against these predatory practices:

Verify Credentials and Licensing

Before hiring any contractor, ensure they are properly licensed and insured. Check with your local licensing authority and ask for proof of insurance. A legitimate contractor will have no issue providing this information.

Research and Read Reviews

Do some homework on potential contractors. Look for reviews online and ask for references. Reputable contractors will have a history of satisfied customers and positive feedback.

Get Multiple Estimates

Don't settle for the first estimate you receive from a stormchaser. Obtain quotes from at least three different contractors, preferably local ones. This will give you a better idea of the going rate for the work needed and help you spot any unusually high or low bids.

Avoid High-Pressure Sales Tactics

Stormchasers often solicit door-to-door and use high-pressure sales tactics to rush homeowners into making quick decisions. If a contractor insists on an immediate decision or uses scare tactics, it’s a red flag. Take your time to make an informed choice.

Don’t Sign Over Insurance Benefits

Some stormchasers may ask you to sign a document that allows them to deal directly with your insurance company. This practice, known as "Assignment of Benefits" (AOB), can lead to inflated claims and unnecessary repairs. Always retain control of your insurance policy and the claim process.

Check for Local Presence

A trustworthy contractor will have a local office and a permanent business address. Be wary of contractors who only have a temporary address or are from out of state. Local contractors are more likely to adhere to local building codes and be available for follow-up work if needed.

Review Contracts Carefully

Read all contracts thoroughly before signing. Ensure that the contract includes detailed information about the scope of work, materials to be used, and the timeline for completion. Be cautious of any vague terms or blank spaces in the contract.

Consult Your Insurance Company

Before committing to any repairs, consult your insurance company. They can provide guidance on approved contractors and the claims process. Your insurer has access to new weather technology that will help them avoid fraudulent or inflated claims, and may also have recommendations or requirements that need to be followed to ensure coverage. You should also discuss the long-term impact on your claims history, especially since it will follow you to your next home.

Report Suspicious Activity

If you encounter a contractor you suspect is a stormchaser, report them to your state’s attorney general’s office or local consumer protection agency. This can help protect other homeowners from falling victim to their schemes.

By taking these precautions, homeowners can protect themselves from stormchasers, ensuring their homes are properly repaired and helping to prevent unnecessary increases in insurance rates. Staying vigilant and informed is key to safeguarding your property and financial well-being.