Contact: Jennifer Bowen
(334) 269-3550

5/12/2023

Governor Kay Ivey has signed a proclamation designating May 22 through May 26 as Contractor Fraud Awareness Week in Alabama.  

Contractor Fraud Awareness Week encourages Alabamians to educate themselves on how to avoid becoming a victim of fraud when having home repairs made.

You can read the Proclamation here. 

“Storms are part of life in Alabama and after a storm passes, unscrupulous contractors may take advantage of people in need of repairs,” said Insurance Commissioner Mark Fowler. “We want Alabamians to know the signs of fraud so they can protect themselves and so they can identify a good contractor from one who may not have their best interests at heart.”

The National Insurance Crime Bureau has the following tips homeowners should consider before hiring a contractor.

- Be wary of anyone knocking on your door offering unsolicited repairs to your home. 

- Be suspicious of contractors who try to rush you, especially on non-emergency or temporary repairs. 

- Do not believe a contractor who says they are supported by the government. The Federal Emergency Management Agency (FEMA) does not endorse individual contractors or loan companies. Call FEMA toll-free at 800.621.FEMA for more information.

- Be selective in choosing a contractor. Consider recommendations from trustworthy sources, such as family, friends, neighbors, or search online.

- Get at least three written estimates for the work and compare bids. Check credentials with the Better Business Bureau or state attorney general’s office to see if the contractors have any outstanding complaints.

- Always have a written, detailed contract that clearly states everything the contractor will do, including prices for labor and materials, clean-up procedures, and estimated start and finish dates. 

- Never sign a contract with blank spaces. A crooked contractor could alter after they receive your signature.

- Never pay for work up front. Always inspect the work and make sure you’re satisfied before you pay. Most contractors will require a reasonable down payment to start, but do not pay anything until you have a written contract.

- Avoid paying with cash; use a check or credit card instead. This creates a record of your payments to the contractor.

- Download a copy of the NICB Post-Disaster Contractor Search Checklist, which walks you through the contractor hiring process. 
 
The Alabama Department of Insurance thanks Governor Ivey for her support of Contractor Fraud Awareness Week.