Minneapolis, St. Paul, Twin Cities MN Roofing, Siding, Exterior Contractors · How to avoid shady contractors ·
How to hire reputable Twin City contractors after being hit by storm damage
What You Should Know About Storm-Chasers!
There are several important things you should know about Storm Chasers. When Mother Nature’s wrath strikes hard, storm chasers flock to a disaster area like pioneers to a gold rush. As most contractors are reputable, there are, unfortunately, some unscrupulous operators out there that will attempt to take advantage of storm victims. Out of nowhere, and usually in record time, these contractors are all over a hard hit area. Should you be grateful for their arrival, or leery of their presence?
The truth is that you should be more leery, primarily for your own protection. It is difficult to tell the good from the bad. Don’t get caught being a double victim… one from the storm, and second from a crooked contractor. Tell tale signs to look out for are contractors that want to collect money from you right away, and / or ask you to sign a contract with them on the spot. Some will come up with catchy gimmicks to get to your heart, all with the intent of getting your signature on the dotted line. Watch out for these contractors! Do not agree to sign anything on the spot and do not give them any money! Many will collect your money and not return to do the work, or will begin, but never finish. Some will also start asking you for more money than agreed to and will insist you pay.
Many contractors that want “in” on the action come from out of state to be involved. Some will be so bold as to contact local contractors and offer to make a deal with them if they hire them as sub-contractors in exchange for a piece of the pot! Some will even ask to “adopt” their company name in exchange for a rather substantial monetary reward. Usually these sub-par, fly by night contractors will do shoddy work and flea to the next disaster leaving the homeowner to fend for themselves when roofs leak and siding falls off. This kind of partnership can be no good for either contractor or homeowner, as it may illicit short cuts be taken, cheaper materials used, materials not paid for and jobs left incomplete. The companies who may have made the mistakes of their lives by taking the large monetary offers are left with warranty claims they cannot afford to cover. In these cases, everyone loses, except for the fly by night contractor who is long gone following wherever the next storms are hitting! Reputable local contractors will refuse these offers. So, be leery of others that may accept.
Some of the advice below is from the Minnesota Department of Labor and Industry. This agency licenses the contractors showing up in your neighborhoods.
- Before hiring a contractor, you should verify the contractor is licensed and check on any history of disciplinary action with that particular contractor. You can do this by checking with the Department of Labor and Industry, either online or over the phone. You can check with The Service Guide to see if they are listed on our service. All contractors listed with The Service Guide are licensed and insured with no disciplinary actions against them. If they are not listed with our service, we can still help you determine if they are properly licensed.
(651-284-5069 or 1-800-342-5354) Department of Labor and Industry
(763-745-7490) The Service Guide
- DO NOT SIGN ANYTHING presented by a contractor unless you read it through carefully and have made a firm decision to hire that contractor.
- Too many homeowners make the mistake of thinking that it doesn’t really matter which contractor they hire because the Insurance Company is paying for it. This could be a big mistake. If you end up with a crooked contractor and you ultimately have problems with their work down the road, you will have a high probability of being on your own. The crooked contractor will be nowhere to be found and any subsequent repairs and their expenses will be all yours.
- Generally speaking, if you sign a piece of paper, it is deemed a contract, regardless of what the salesman tells you. You are obligated to its terms.
- Beware of the cases where a salesman for a contractor explains that the company will work directly with your insurance carrier to get a good settlement, and that you will not have to pay any more than the amount of your deductible.
- Beware of the salesperson that asks you to sign an authorization form to allow him to contact the insurer. Many of the forms state that by signing, you agree to have the contractor perform the work allowed by the insurance company in exchange for the insurance claim proceeds. Regardless of what the salesman tells you otherwise, unless you have thoroughly read all of the fine print and determined you are not bound to the above, do not sign on the dotted lines.
- As a homeowner, you may be left with the mistaken impression that you are still free to pursue bids from other contractors, even after signing this document. However, in many cases, some of these contract forms contain small print, typically on the back of the contract that says if the homeowner cancels the contract after three business days, the homeowner will owe the contractor a percentage (usually 15% to 50%) of the total claim settlement. This becomes a problem when the homeowner finds another contractor they prefer over the original one. Don’t be bullied to sign. Take the time you need to check out contractors you are considering.
Here are some Quick Tips to consider if your home is struck by storm damage.
- Be wary of contractors who knock on your door.
- Be wary of contractors whose vehicle license plates are from out of town
- Ask for the contractor’s license number and use it to gather information about their current status with the Department of Labor and Industry
- Ask the contractor how long and where they have been in business. This can be verified with the Secretary of State of Minnesota and should be.
- Ask for a copy of the contractor’s General Liability Insurance. Ensure that it is current and carries a minimum of $1,000,000 coverage.
- Ask for a list of references and take the time to contact them to see how satisfied they were with their work
- Ask for a local phone number and address other than a post office box
If the contractor hesitates or refuses to provide you with any of the above, this could be a red flag. Beware of working with any contractor that will not provide this information to you.
Avoid contractors that:
- Arrive in an unmarked vehicle
- Ask you to sign an estimate or authorization before you have decided to actually hire their services
- Appear to be willing to do the job at an unusually low price
- Only provide a post office box for their business address
- Require full or substantial payment before they begin work
- Refuse to provide you with a written estimate or contract
- Refuse to provide you with a license number issued by the state of Minnesota
- Refuse to provide you with insurance or references
- Show up at your door unsolicited
- Use high pressure sales tactics
If you do decide to sign, make sure your contract includes:
- A detailed summary of the work to be done
- A description of the materials being used
- The total contract price or how the price will be calculated
- Specific timelines and provisions that address what will happen if the contractor fails to meet the contractual deadlines
What is the Contractor’s Recovery Fund? How can it benefit you?
The purpose of the Contractor’s Recovery Fund is to compensate consumers who have suffered losses due to a licensed contractor’s fraudulent, deceptive or dishonest practices, conversion of funds or failure to perform. All licensed contractors are required to pay a fee to the fund. Take note, that consumer protection with this fund applies only to contractors that are licensed. If you hire an unlicensed contractor, you will not be eligible to receive any sort of compensation from this fund.
The total amount that can be paid out against any one licensed contractor is $75,000. If multiple claims are filed against the same contractor, they are prorated. In these situations, you may not be able to recover your entire loss. To better protect yourself, you may wish to request your contractor obtain a performance bond for your specific project, in case the contractor does not perform. A performance bond would provide a specific level of protection for your specific project.
For more information, contact the Department of Labor and Industry
(651-284-5069 or 1-800-342-5354)
Or feel free to contact The Service Guide with questions
(763-745-7490)
Resources: Minnesota Department of Labor and Industry
Building Resource Group
ConsumerAffairs.com
|
