Be on the Lookout for Home Repair Scams and Shady Contractors Following Natural Disasters

Scammers and fraudsters are always active after a disaster hits and they don't care how they steal your money

Preparing for an approaching hurricane or other weather disaster is stressful enough without worrying about fraudsters who target homeowners in their time of need. If you find yourself needing repairs after a storm, know what to look for so you can separate honest, licensed contractors from scammers looking for a quick payday. Always verify credentials, insurance and references before any work begins.

Avoid Contractors Who Contact You

Scammers and shady contractors are always hard at work, even when no major storm has hit. After widespread damage they blend in with legitimate crews and prey on urgency. If a contractor calls you out of the blue or shows up at your door without invitation, turn them away. Most reputable companies have more business than they can handle and won’t solicit door to door.

These fraudsters often claim to be “working in your neighborhood,” point out both obvious and hidden damage without a permit or proper inspection, then demand large deposits or full payment up front. They may start minimal work to gain your trust before disappearing, or bill your insurance company without completing repairs. Always ask for a physical address, a copy of their state license and proof of liability and workers’ compensation insurance. Then confirm all details online or by phone.

Never Pay by Check or Cash

Even with legitimate contractors, avoid payment methods that offer no recourse. Cash and personal checks are hard to trace and nearly impossible to recover if the job is left unfinished or done poorly. Instead, use a credit card or an online payment service that allows dispute or chargeback. Hold final payment until after a satisfactory final inspection and a signed lien release.

Always Get Multiple Estimates Before Committing to a Job

Just as you would compare insurance policies, obtain at least three written bids from different contractors. Compare scope of work, material specifications, labor rates, permit fees and estimated timelines. In post-disaster conditions, some may inflate costs by 20 to 50 percent; multiple estimates help you spot outliers.

Keep each bid confidential so contractors cannot adjust their prices upward based on lower quotes. Insist on on-site inspections, verbal or email estimates without a walkthrough often miss critical details and lead to surprise charges later.

Have a Written Contract with a Guarantee

A handshake is no substitute for legal protection. Require a detailed contract that specifies the full scope of work, brand and grade of materials, total cost, payment schedule, start and completion dates, and warranty terms, typically six months to one year on labor and materials. Read the fine print before signing; watch for clauses that limit your right to file complaints or that add undisclosed fees.

Ensure the contract states that the contractor will obtain all necessary permits and arrange final inspections. Upon completion, demand a lien waiver and proof that subcontractors have been paid to prevent you from facing mechanic’s liens later.

Your Right to Cancel

Under the Federal Cooling-Off Rule, you may cancel contracts signed at your home or at a temporary location, such as a hotel or fair—within three business days. The contractor must provide a clear cancellation notice. To cancel, send written notice via certified mail and keep the postal receipt as proof of timely delivery.

Price Gouging Is Illegal

Many states prohibit price gouging after a declared emergency. Charging excessive fees for essential repairs can lead to fines or criminal penalties. Check your state Attorney General’s website for specific thresholds and file a complaint if you suspect overcharging.

If you believe you have been a victim of price gouging, submit a report through your state AG’s online form. In North Carolina, use the price gouging complaint form.

Other Types of Complaints

If you experience fraud, shoddy workmanship or unauthorized charges, report the contractor to your state Attorney General, the Federal Trade Commission and the Better Business Bureau. If federal disaster relief funds are involved, notify FEMA’s Office of Inspector General. Keep all estimates, contracts and correspondence to support your complaint.

Check North Carolina Licensing Requirements

In North Carolina, general contractors working on projects over $30,000 must register with the North Carolina Licensing Board for General Contractors. You can verify registration and any disciplinary history at nclbgc.org. Roofing, electrical and plumbing trades may require separate state or local licenses, always confirm.

Use State Hotlines and Resources

The North Carolina Department of Insurance offers a Consumer Services division and a 24/7 price-gouging hotline at 1‑855‑408‑1212. Your county building inspections office can confirm permit status and inspection results. The NC Attorney General’s Consumer Protection Division also handles contractor complaints and can assist with consumer fraud.

Confirm Local Permits and Inspections

Storm repairs often require county or city permits in North Carolina. Contact your local building department to ensure the contractor has pulled the proper permits and scheduled final inspections. Failure to comply can result in fines or insurance denial.

Consider Disaster Relief and Assistance Programs

North Carolina Emergency Management (NCEM) and FEMA offer grants and low-interest loans for homeowners impacted by declared disasters. Nonprofits like ReBuild NC partner with vetted contractors for safe, affordable repairs. Research eligibility early to avoid last-minute scams.

Be Especially Cautious if the Contractor

• Arrives unannounced at your doorstep
• Calls or emails you unexpectedly
• Claims to be “working in your neighborhood” without proof
• Pressures you to sign a contract immediately
• Offers a “special deal” that’s only available today
• Points out damage you never noticed before
• Requests full payment up front, especially in cash
• Lacks proper identification, permits or insurance proof
• Asks you to recruit neighbors or share personal data
• Offers to handle your insurance claim for an extra fee
• Insists you leave home unattended during inspections