Scammers are constantly finding new ways to trick people out of their money, and home improvement projects are a frequent target. As warmer weather arrives and homeowners start planning renovations, contractor scams become increasingly common. Here’s a look at some of the most prevalent home improvement scams and how you can avoid them.
The Door-to-Door Scam
In this scam, individuals posing as contractors or representatives of home improvement companies show up at your doorstep. They often offer to perform work at a low cost or even for free, claiming they have leftover materials and want to help you out. While this may sound appealing, these scammers are usually unlicensed and uninsured, using substandard materials and doing poor-quality work. They may also pressure you to sign a contract immediately, leaving no time for research or obtaining other quotes. The worst-case scenario is when they ask for full payment upfront, then vanish without completing any work.
Stay Safe: Never hire a contractor on the spot. Always ask for proof of license and insurance, and request references from previous clients. Never pay in full before the project is completed.
The High-Pressure Sales Scam
Some unscrupulous home improvement companies use high-pressure tactics to get you to sign a contract quickly. They might offer a limited-time deal or claim they can only do the work if you sign immediately. These tactics are designed to rush you into a decision before you’re ready, often hiding extra fees or making promises they can’t keep.
Stay Safe: Take your time when hiring a contractor. Don’t be swayed by limited-time offers, and always read the contract thoroughly before signing.
The “As Seen on TV” Scam
In this scam, contractors claim their product or service is endorsed by a reputable source, like a popular TV show or celebrity. These endorsements are often fabricated or exaggerated, and the products or services may not meet expectations or be overpriced.
Stay Safe: Research thoroughly and read reviews from multiple sources before hiring a contractor. Verify any claims of endorsements or popularity.
The Insurance Scam
Here, scammers promise to help you get a new roof or other home improvement covered by your insurance, even when there’s no legitimate claim. This is insurance fraud, which is illegal and can result in fines or jail time.
Stay Safe: Always verify with your insurance company before starting any project. Ensure the project is covered under your policy and understand the deductible and other terms.
Home improvement projects should be exciting, not stressful. By following these tips, you can protect yourself from scams and enjoy your renovations safely.
For more tips on protecting yourself, visit our Fraud and Security page on our website.