If it ain’t broke, don’t fix it. If it is, fix it … carefully. That’s easier said than done when a contractor promises fast repairs at an unbeatable price. Here are seven warning signs that a contractor might leave you with partial, poor, or overpriced work.
1. The “storm chaser”
A storm hits, and suddenly, help is knocking on your door — or what’s left of it. A contractor says they can fix the damage on the spot. It might look like a silver lining, but reputable contractors usually book jobs in advance. And if they want you to sign your insurance check over to them, that “easy solution” only makes it easier for you to lack control if things go wrong.
2. The “free” inspection
Someone knocks and offers a free inspection. It’s free, so why not? Ten minutes later, your house is supposedly falling apart. Apparently, it’s so serious that if you look at it, everything will crumble. And if you ask questions, good luck following their “explanation.” The pitch is simple: let them fix it now or regret it later, even if the problem is minor … or non-existent.
3. The “leftover materials” deal
A contractor claims they have extra materials from another job and offers a steep discount. Convenient, right? It’s a great deal, and your house needs some work, but you feel pressured to decide quickly. This is exactly what the scammer wants — to rush you into deciding before you do your research.
4. No license or insurance
It may seem obvious, but it happens. Some contractors rely on our good faith to avoid showing their license and proof of insurance. They might say it’s not a big deal. It is. Don’t settle for excuses. Hiring a contractor who isn’t licensed or insured can leave you unable to make a claim against substandard work and liable for their injuries.
5. Large upfront deposit
Until now, everything has been smooth. No pressure, fair estimates, and valid licenses. But before signing a contract, the contractor asks for cash up front. A lot. Maybe all of it. Yes, deposits are normal, but never pay more than one-third of the total estimate, and never before you sign a contract.
6. Vague contract
When it’s time to put pen to paper, the details get fuzzy. Timelines? Unclear. Costs? Open-ended. This is standard, they say. Don’t stress, they stress. But without clear terms, it’s hard to know what you’re agreeing to, and even harder to sort things out later.
7. Specific payment methods
A contractor may insist on payment via cash, gift cards, or cryptocurrency. Not only are these harder to track, but they’re also harder to recover. A preferred payment method isn’t always alarming, but only accepting payment in a particular way is.
How to protect yourself from home improvement scams
To protect yourself from home improvement scams, get multiple written estimates before agreeing to any work and verify a contractor’s licenses and insurance independently. Avoid rushing into signing a contract, and keep copies of all documents, receipts, and any changes made along the way to have a record if problems arise.
Resources for victims of home improvement scams
Restoring Trust is a program from the Better Business Bureau Foundation that connects victims with trusted, vetted businesses to repair and rebuild after a scam. You can apply here.
You can also report the scam to the AARP Fraud Watch Network at 877-908-3360 or file a report on the AARP Scam-Tracking Map. Remember, if you can spot a scam, you can stop a scam.
Aidan Smith is an intern for AARP Alaska.
