Storms and Fraud
When bad storms or tornadoes cause widespread damage to homes, scammers may try to exploit the disaster. Storm victims are often more vulnerable to home repair fraud because they may be so desperate to get their lives back to normal that they don’t question the costs they’re quoted or thoroughly check out the person they’re hiring. These scam artists, often referred to as “storm chasers,” may ask homeowners for up-front payments for home repairs and then disappear without ever doing the work. In other cases, scammers may charge exorbitant prices, charge you for unnecessary repairs or do substandard work. Sometimes scammers offer to cover the homeowner’s insurance deductible and persuade him or her to give fake reports to the insurance company, potentially implicating the homeowner in a case of insurance fraud.
The Attorney General’s Consumer Protection Division offers the following tips to those who are in need of home repair work or tree-removal services:
- Avoid door-to-door offers for home repair work. Instead, ask friends and neighbors for referrals.
- Steer clear of any contractor who asks for full payment up-front, only accepts payment in cash, or who refuses to provide you with a written contract.
- Ask contractors for three references of customers who had projects similar to yours, and check them out.
- Get written bids from at least three contractors. Be skeptical if the bid is too low. Cheaper is not necessarily better.
- Always insist on a contract for work to be performed, with all guarantees, warranties and promises in writing. Agree on start and completion dates and have them written into the contract.
- Never pay for the entire project before the work begins. Consider paying no more than one-third of the total cost as a down payment, with remaining payments tied to completion of specified amounts of work, and the final payment not due until the job is completed.
- Be skeptical of any contractor that offers to pay your insurance deductible or offers other no-cost incentives, as these can be signs of fraud. You should always talk to your insurance company before committing to any repairs or even allowing a roofer to inspect your roof for any damage. Also be aware that roofers are not allowed to file claims on their customers’ behalf unless the roofer is (or employs) a licensed public adjuster to file its customers’ claims.
- Check with the Better Business Bureau (bbb.org) to if there are any complaints against the business.
- Make sure that the tree removal has a valid arborist license by visiting the International Society of Arboriculture’s website at www.isa-arbor.com.
- Make sure that general contractors, electricians, plumbers and heating and air conditioning contractors are licensed by going to the Secretary of State’s website at sos.ga.gov. Note that certain specialty occupations such as roofers, tree removal services, painters, drywall contractors and repair handymen are not required to be licensed by the state.
- A legitimate roofing company or contractor should be able to provide the following:
- Local references and testimonials
- Business License
- General liability insurance
- Workers compensation insurance
- Written manufacturer warranties
- Written labor warranties
Increased Protection for Consumers Under Georgia Law
SB 201 provides increased protection for homeowners when entering into contracts with contractors following natural disasters. Under the section of the law that goes into effect on July 1, 2025, if a contractor enters into a contract with a homeowner within one year of a natural disaster to repair, replace, or mitigate damage to the homeowner's home caused by the disaster, it is illegal for the contractor to do any of the following:
- Fail to substantially commence work on the contracted services within one year of the execution of such contract;
- Complete all or a portion of the agreed upon services in a substandard manner;
- Enter into a contract with the homeowner in which the homeowner assigns insurance proceeds to the contractor;
- Complete services in a manner inconsistent with the state minimum standard codes or accredited industry standards; or
- Fail to comply with the following cancellation requirements:
- Business must accept the cancellation of the contract by the homeowner prior to midnight on the fifth business day after such homeowner has received written notice from the insurer that all or any part of the claim or contract related to the natural disaster is not a covered loss under the homeowner's insurance policy. Cancellation shall be evidenced by the homeowner giving written notice of cancellation to the contractor at the address stated in the contract. Notice of cancellation, if given by mail, shall be effective upon deposit into the United States mail, postage prepaid and properly addressed to the contractor. Notice of cancellation need not take a particular form and shall be sufficient if it indicates, by any form of written expression, the intention of the homeowner not to be bound by the contract; and
Before entering a contract as provided in this subparagraph, business must furnish each homeowner with a fully completed form in duplicate, captioned 'NOTICE OF CANCELLATION,' which shall be attached to the contract but easily detachable, and which shall contain in boldface type of a minimum size of ten points the following statement:
'NOTICE OF CANCELLATION
If you are notified by your insurer that all or any part of the claim or contract is not a covered loss under the insurance policy, you may cancel the contract by mailing or delivering a signed and dated copy of this cancellation notice or any other written notice to (name of contractor) at (address of contractor's place of business) at any time prior to midnight on the fifth business day after you have received such notice from your insurer.
I HEREBY CANCEL THIS TRANSACTION
(date)
(insured's signature).
- Business must accept the cancellation of the contract by the homeowner prior to midnight on the fifth business day after such homeowner has received written notice from the insurer that all or any part of the claim or contract related to the natural disaster is not a covered loss under the homeowner's insurance policy. Cancellation shall be evidenced by the homeowner giving written notice of cancellation to the contractor at the address stated in the contract. Notice of cancellation, if given by mail, shall be effective upon deposit into the United States mail, postage prepaid and properly addressed to the contractor. Notice of cancellation need not take a particular form and shall be sufficient if it indicates, by any form of written expression, the intention of the homeowner not to be bound by the contract; and
If you think that you may have been the victim of home repair fraud, please contact the Attorney General’s Consumer Protection Division by visiting consumer.ga.gov or by calling (404) 651-8600 or 1-800-869-1123 (toll-free in Georgia).
If you believe a roofer or other contractor has committed insurance fraud, you can report it to the Georgia Department of Insurance at oci.georgia.gov/report-suspected-fraud or by calling 404-656-2070 or 1-800-656-2298.
Consumers who have trouble making contact with or receiving a timely response from their insurance company or who have questions about their insurance policy can also call 1-800-656-2298 or visit oci.georgia.gov.
Always stay weather-aware with these helpful tips from the Georgia Emergency Management Agency: https://gema.georgia.gov/plan-prepare/alerts-and-warnings.