Scams are rampant after natural disasters. Here’s how to protect yourself.

You have just experienced a terrible flood, forest fires or a hurricane. Your house has suffered significant damage and you don’t know where you are going to live or how you reconstruct. Next comes the door, a call on your mobile phone or an advertisement on your local social media pages. A sympathetic entrepreneur wants to know if you want help. Should you say yes?

Each year, tens of thousands of people live natural disasters and must repair their house. The choice of an entrepreneur is one of the most important decisions they will make. Here are some tips to make sure you hire a trustworthy and protect you from scams.

• How did you find them? If they approached you, whether at your door or elsewhere, be very careful. Often, predatory entrepreneurs do door-to-door, using car tactics in car seller to get you to hire them. Ideally, you will have found them through a person you trust or through a local organization or a supplier government.
• Are they allowed? Most states require that entrepreneurs be authorized with the state. Ask the entrepreneur to show you his license. Save a copy and independently check their license number with your state insurance department. If they tell you that they are allowed in another state or that they have no license, beware. Also be aware of the difference between “under license” and “recorded”. Approved entrepreneurs must periodically take tests, while registered entrepreneurs must simply provide contact details to state authority.
• Do they work with your insurance? If your house is insured, ask them if they have worked with your insurance company in the past. If they say yes, call your insurer to verify that the entrepreneur is an approved supplier and that your police will cover the cost of the repairs they make.
• Did they provide an estimate of costs? Do not allow the entrepreneur to start working without providing you with a detailed assessment of damage and cost of repairs. Some entrepreneurs can use the fact that you want to rebuild quickly to jump the steps. But always ask for an estimate of costs before the start of work. Then run the estimate by your insurance expert or complain to the quotes from other entrepreneurs.
• Have you had several offers? Getting estimates from other entrepreneurs will help you understand industry standards and protect prices. Insurance companies will also often ask owners to obtain several offers before approving the work. Depending on the severity and scope of a disaster, it can be difficult to obtain several offers because the entrepreneurs are overwhelmed. Be patient, if possible, and call as many places as possible.
• Do they ask for partial or complete payment in advance? Run! Credible entrepreneurs will not require large sums in advance. Legitimate entrepreneurs generally charge increments as the work is completed.
• Have you looked for online criticism? Check their Yelp, Angie’s and Google list, but be sure to search for the Better Business Office: 1-800-544-7693 or online. An A + note is not a guarantee of a good entrepreneur, but opinions and complaints on the office website can help you assess customer experiences with a business. Also look for the name of the entrepreneur as well as terms such as “SCAM”, “complaints” and “negative criticisms” on Google and social media sites like Facebook. You can also check with your local association manufacturers to verify identification, reputation and membership information.
• Do you understand what you are responsible for? Some entrepreneurs force you to obtain permits and others take care of it. Ask your entrepreneur, then contact your local inspections and permit to determine whether the permits are required. If so, confirm that the entrepreneur acquired them before the start of the construction.
• Is everything done? Before making the final payment, assess the completed work and force the entrepreneur to confirm that all subcontractors and suppliers have been paid to eliminate potential privileges on your property.

If you have knowledge of fraud, waste or abuse, you can report it to the fraud hotline in the event of FEMA disaster at 866-720-5721 or send an email to stopfemafraud@fema.dhs.gov. You can also contact the National Center for Disaster Fraud. Before calling, gather as much details as possible, including how and where it happened. You can also point out to the Attorney General of your State or to local police.

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