Home repair scams: How to protect yourself

What should you do if a stranger knocks on your door, or calls you, saying they can fix your roof, install new windows, or give you energy-efficient solar panels? After a flood, windstorm, or other natural disaster, they may target you by pressuring you to act quickly, asking you to pay in cash, or offering financing.

The next thing you know … they run off with your money without doing the repairs. They may also do shoddy repairs to make the damage worse, or even put you in a bad financing agreement that puts you and your house at risk. You have fallen victim to a scammer.

You should know the warning signs of home repair scams and how to protect yourself.

What are the warning signs?

According to the New York state Department of Financial Services, avoid contractors who:

• Knocks on your door or calls you on the phone offering to make repairs.
• Tells you that you must make repairs immediately.
• Talks very quickly to confuse you and pressures you to sign a contract immediately.
• Tells you they are doing work in your neighborhood and have extra materials left from another job.
• Offers a discounted price if you refer other people to them, but only if you buy today.
• Tells you something that sounds too good to be true. If it sounds too good to be true, it probably is.
• Is not an established local business but has come to the area from somewhere else to “help.”

How should I protect myself?

• Avoid unlicensed contractors in NYC, Nassau, Suffolk, Putnam, Rockland, Westchester – these are areas of the State where a license is required. Unlicensed contractors are operating illegally in those areas.
• Avoid contractors who don't have references or whose references can't be reached.
• Avoid contractors who tell you there's no need for a written contract. By law, all contracts for $500 or more must be in writing, but it's a good idea to get a written contract even for smaller projects.
• Avoid contractors who only have a P.O. Box address or only a cell phone number.
• Avoid contractors who do not supply proof of insurance.
• Avoid contractors who ask you to get required building permits. It could mean that the contractor is unlicensed or has a bad track record and is therefore reluctant to deal with the local building inspector.
• Verify with your local building department that the contractor has obtained all the necessary permits.
• Be wary of contractors who ask for money to buy materials before starting the job. Reliable, established contractors can buy materials on credit.
• Avoid contractors who demand payment in cash or want full payment up front before work has begun. Instead, find a contractor who will agree to a payment schedule providing for an initial down payment and subsequent incremental payments until the work is completed.
• Always withhold final payment until you have completed a final walk through, approved all the completed work, and all required inspections and certificates of occupancy have been delivered to you.

What should I do if I’ve been scammed?

If you think you have been the victim of a scam, contact a lawyer immediately. There are time limits to cancel sales and pursue legal claims.

Contact the Department of Financial Services, your district attorney, or the Attorney General’s Office.

If you have a problem with a home improvement contractor and can't resolve it yourself, you can file a complaint with the New York Department of State or by calling 1-800-697-1220.

Contact your insurance company, agent, or broker to get answers to specific questions about your policies or claims.

The information in this article was obtained from various sources not associated with Adirondack Bank. While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. Adirondack Bank is not responsible for, and does not endorse or approve, either implicitly or explicitly, the information provided or the content of any third-party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. These suggestions are not a complete list of every loss control measure. Adirondack Bank makes no guarantees of results from use of this information.