Hiring help after a storm or disaster without getting scammed

There's a particular kind of tired that sets in after a storm. The power's out or just back, there's a tarp on the roof, the yard is a mess, and you want it fixed yesterday. Then someone knocks on the door. They're in the neighborhood, they have a crew, they can start this afternoon.

That knock is exactly what the Federal Trade Commission warns about. After hurricanes, tornadoes, floods and wildfires, unlicensed contractors and outright scammers move into recovery zones because they know people are desperate and moving fast. You can still get help quickly. You just need a few guardrails.

The warning signs, straight from the FTC

The FTC lists the tactics that should make you stop:

• They claim they don't need a license to do the work.
• They offer a discount, but only if you sign right now.
• They tell you to sign over your insurance check.
• They want everything paid up front.
• They insist on wire transfer, gift card, payment app, cryptocurrency or cash.
• They ask you to sign a blank contract.
• They push you to borrow from a lender they know.
• They say they can help you qualify for FEMA relief, for a fee.

Its general home-repair guidance adds two more classics: the crew that's "in the area" knocking on doors, and the one with "materials left over from another job." Also be wary of anyone who asks you to pull the building permit yourself.

The FEMA fee myth

This one deserves its own line. FEMA doesn't charge application fees. If someone wants money to help you qualify for federal disaster help, the FTC says plainly: it's a scam. You can contact FEMA yourself through its Disaster Helpline at 1-800-621-FEMA.

Don't let a contractor manage your insurance money

Storm repairs are often paid for, at least partly, by insurance. Scammers know that and try to get between you and the check.

The FTC's advice:

• Verify your coverage with your insurer yourself. Don't rely on a contractor to tell you what's covered.
• Never sign your insurance check over to a contractor.
• Ask your bank or credit union about a Certificate of Completion. With that setup, the bank pays the contractor for each stage of the job only after you've approved the work.

That last step is worth the phone call. It keeps the money tied to progress you can see.

How to vet someone when you're in a hurry

You don't have to do a week of research. You do need to do the basics:

1. Look up the license. Check with your state or county government to confirm it, and ask for proof of insurance. The FTC says to consider only contractors who are licensed and insured. Our guide on checking a contractor's license walks through it.
2. Search the name. The FTC suggests searching the company's name with words like "scam," "review" or "complaint," and reading reviews on sites you trust. Our guide to reading online reviews can help.
3. Ask a local home builders association whether there are complaints against the contractors you're considering.
4. Get more than one written estimate. It should describe the work, materials, completion date, price and the contractor's contact information. Don't automatically pick the lowest bid, and ask about big differences.
5. Get a written contract, with no blanks. It should list the contractor's name, address, phone and license number, start and finish dates, a payment schedule, and any promises made in conversation. If you signed it at home, it should include your right to cancel within three business days.

For a deeper look at what belongs in the paperwork, see written estimates and home repair contracts.

How to pay so you can still get your money back

Payment method matters more than people think. The FTC recommends:

• Negotiate a reasonable down payment. Some states limit how much a contractor can ask for up front. Your state consumer protection agency can tell you the rule.
• Pay by credit card or check. Never wire money, use gift cards, payment apps, cryptocurrency or cash. Once a scammer has that money, it's almost impossible to get back.
• Hold the final payment until the work is done and you're satisfied. Keep every invoice and receipt.

Watch out for the loan pitch

The FTC describes a scam where the contractor offers to arrange financing, starts work, then hurries you into signing papers that turn out to be a high-cost loan against your home. Sometimes the work never gets finished, and the contractor, already paid by the lender, stops answering.

Shop around for any loan yourself. Never sign a document you haven't read, one with blank spaces, or one in a language you don't understand. And never transfer your deed to anyone without talking to an attorney or someone you trust.

Where real financial help may come from

The FTC points to two federal sources:

• FEMA, whose disaster programs can include grants for necessary disaster-related home repairs. Call 1-800-621-FEMA.
• The U.S. Small Business Administration, which makes low-interest disaster loans to homeowners. The FTC notes these loans can go up to $200,000 to repair or replace a primary residence.

If you're considering a private loan, be cautious about using your home as security. If you can't repay it as agreed, you could lose the house.

If something goes wrong

Try to work it out with the contractor first. Follow up phone calls with a letter sent by certified mail, return receipt requested, and keep copies. If that doesn't work, the FTC suggests your state attorney general or local consumer protection office, local media consumer-action lines, and legal services organizations. Report scams to the FTC at ReportFraud.ftc.gov.

Frequently asked questions

Should I let someone put a tarp on my roof right away?

Emergency steps to prevent more damage can make sense, and your insurer may expect you to take them. Keep it limited, get a written price first, pay by card or check, and don't sign a contract for the full repair on the spot.

A contractor offered to handle my whole insurance claim. Is that normal?

Be careful. The FTC says to verify coverage with your insurer yourself and never sign your check over. Rules on who can negotiate claims for you vary by state, so ask your state insurance department if you're unsure.

How long do I have to cancel a contract I signed at my kitchen table?

When you sign at home or somewhere other than the seller's permanent place of business, the FTC says the contract should state your right to cancel within three business days. Check your state's rules for anything more.

Rules vary by state and disaster programs change, so confirm details with FEMA, the SBA, your insurer or your state consumer protection office.