Natural disasters often create opportunities for bad actors to take advantage of stressed homeowners and vehicle buyers. BBB recommends that consumers take time to verify businesses, understand their insurance coverage, and avoid high-pressure sales tactics before making major decisions.
Consumers should be especially careful with vehicles, appliances, electronics, and other items that may have been exposed to floodwater. If a deal seems unusually cheap, ask questions about the item’s history and condition before purchasing.
What to watch for after flooding:
- Storm repair scams. Be cautious of contractors who appear immediately after a flood and ask for large upfront payments.
- Flood-damaged vehicles. Flood damage can be difficult to detect and may not appear on vehicle history reports right away.
- Insurance fraud pressure. Never sign over insurance checks or claims rights to a contractor.
Tips for hiring a repair contractor:
- Contact your insurance company first. Confirm what damage is covered and whether there are any requirements before selecting a contractor.
- Research the business. Look up the company’s BBB Business Profile at BBB.org, read reviews, and ask for local references.
- Watch for red flags. Be cautious of door-to-door solicitation, cash-only deals, high-pressure sales tactics, and requests for large upfront payments.
- Get multiple estimates. Compare quotes from at least three businesses before making a decision.
- Get everything in writing. A detailed contract should include contact information, scope of work, materials, payment terms, warranty information, and project dates.
- Verify licenses and insurance. Confirm that the contractor is properly licensed and insured for work in your area.
- Use a safe payment schedule. Avoid paying the full amount upfront. Make final payment only after the work is completed and inspected.
Tips for buying a used vehicle after a flood:
- Think twice before buying immediately after a natural disaster. Some flood-damaged vehicles may be offered for sale before the damage appears on vehicle history reports.
- Ask for a vehicle history report. Review prior accidents, inspections, and maintenance records.
- Have the vehicle inspected independently. A licensed mechanic can identify problems that may not be visible during a test drive.
- Research the seller. Check dealerships and sellers through BBB.org before making a purchase.
- Get all promises in writing. Ensure warranty details, repairs, and sales conditions are included in the contract.
