How Do You Know If a Restoration Company Is Scamming You?

A common sign of a scam is a pro who pressures you to sign a contract immediately, especially before any assessment. They might claim the price will go up or that the damage will worsen if you wait. Legitimate pros will give you time to understand the scope of work and the costs involved before committing.

Be very wary of any request for full payment before work begins. A reputable professional typically expects payment upon completion of the job or according to a clear schedule tied to project milestones. A demand for cash-only payment or a check made out to an individual, not a business, is another major red flag.

Be cautious if a pro tells you not to call your insurance company or claims they can get you a larger payout by exaggerating the damage. This is insurance fraud. Your insurer has specific procedures for claims, and a legitimate pro will communicate directly with your adjuster within that framework.

Policies vary, and your insurer decides what is covered. A scam operation might pressure you into assigning your entire insurance benefit directly to them. You should always maintain control over the payment process. It is wise to get your insurer's approval before any major work starts.

• Discouraging you from contacting your insurance provider.
• Promising to waive your deductible, which is often illegal.
• Pressuring you to sign an assignment of benefits form.
• Submitting an inflated estimate to your insurer without your knowledge.
• Claiming they have a special relationship with your insurance company.

The best defense is to get multiple written estimates from different pros. This allows you to compare scope and price. Do not automatically choose the lowest bid; an unrealistically low price can be a bait-and-switch tactic where costs escalate later. Ask for and check references from past customers.

Take your time. A sudden water leak requires quick action to mitigate damage, but you still have time to vet a pro for the full restoration. You can start with emergency water extraction from a trusted source while you research local water damage pros. Document all damage with photos before any work begins.

• Obtain at least three detailed, written estimates.
• Verify the pro's license with the state licensing board.
• Ask for and contact references from previous jobs.
• Search the business name online for public complaints or legal actions.
• Never sign a contract with blank spaces.
• Keep thorough records of all communications and paperwork.