State’s Attorney reminds residents to beware of home repair fraud schemes

 

A Note from Anita Alvarez

Cook County State’s Attorney

 

April showers may bring May flowers, but they are already bringing severe storms and flooding to our region, which can leave homeowners in need of repairs from wind or water damage.  If you have had the unfortunate experience of flooding in your basement or other storm damage, you may need to hire a contractor or company to provide professional repairs, cleanup or assistance. 

Before you contact any potential contractor, you should contact your insurance company as soon as possible to find out exactly what your policy covers and the documentation that will be required to complete repairs.  Here are some other tips to keep in mind when looking for a contractor or company:

• Thoroughly document the damage before hiring someone.  Make detailed lists of items and take pictures and/or video if possible.

 

• Don’t be rushed or pressured to sign a contract. Make temporary repairs if needed — board up windows or put a tarp over a leaking roof  — to give yourself time to get estimates before hiring someone. 

 

• Be wary of someone going door-to-door offering to make repairs, offering low prices if you “act now.”

 

• Get multiple estimates from different contractors to compare prices, materials and work to be done.

 

• Ask questions about the repair, including time frame to complete and materials.  If your questions aren’t answered to your satisfaction, ask again or contact another company.

 

• Ask for references and check them out.

 

• Make sure the company is licensed, bonded and insured.  Get the license number and check with the Illinois Department of Professional Regulation to verify the license is in good standing.  Have an insurance certificate issued in your name and get a copy of the surety bond.  Also make sure the company carries workman’s compensation insurance.

 

• Make sure the contractor gets all necessary permits and that the person who is doing the work is the same one that pulled the permit.

 

• Once you have a work proposal, have your insurance company approve it to ensure the repairs are needed and the money will be available under your policy.

 

• Be sure that you read and understand the entire contract before signing it.  Make sure any promises or guarantees made during discussions with the contractor are in the contract.  Check the contract’s Notice of Cancellation clause (typically 3 days) and make sure it expressly states where notice should be sent and by what specific date.  Never sign a contract with blank spaces.

 

• Do not turn your entire insurance check over to the contractor or pay in full prior to the work being completed.  The standard schedule of payment is 1/3 before the work starts (down payment), 1/3 at the half way point in work (which should be spelled out in the contract) and the final 1/3 when the work is completed to the homeowner’s satisfaction.

 

• Check the company’s rating on the Better Business Bureau’s website:  www.bbb.org.  Don’t rely too heavily on the rating; check to see if the company has any complaints and how they were resolved.

 

• Read the pamphlet, “Home Repair: Know Your Consumer Rights,” before hiring a contractor.  All home repair contractors are required by law to provide you with this pamphlet before asking you to sign a contract over $500.

Finally, follow your instincts.  If the deal seems too good to be true, it probably is. If you feel pressured or uncomfortable with the contractor or company, contact another.  This is your home, most likely your largest investment, and it should be your decision on who performs the work on it.

If you have concerns or think you may have been scammed, contact the Cook County State’s Attorney’s Consumer Fraud Unit at (312) 603-8700.