A North Texas family, the Congletons, lost $250,000 to a home improvement scam. The scammers, a married couple, posed as architects and remodelers, but never started work on the project.
Recognizing the Signs of a Dishonest Contractor
To avoid falling victim to home improvement scams, it’s essential to recognize the signs of a dishonest contractor. Verifying a contractor’s license and insurance coverage is crucial. Except for small projects, contractors must hold current homebuilding licenses and certifications.
Homeowners can verify a contractor’s license by searching their state’s database. For example, Alabama’s licensing board offers an online roster search. It’s also essential to obtain a certificate of insurance (COI) from the contractor, which verifies coverage of general liability and workers’ compensation.
Additional Tips for Avoiding Scams
Before sending money or signing a contract, confirm that the contractor’s contact details match official public records. A reverse phone or email lookup can help flag inconsistencies. Trustworthy contractors are often accredited with the Better Business Bureau (BBB) and may be members of the National Association of Home Builders.
Homeowners should also ask about past projects and get multiple estimates. Legitimate contractors should have no issue with providing references or estimates. If a contractor demands a large upfront payment, it may be a scam.
If you believe you’ve been a victim of a home improvement scam, contact your state attorney general and the Federal Trade Commission.
Original reporting: KEYT (Ventura/Santa Barbara) — read the source article.
