Disaster Recovery: Avoid Home Repair Fraud

Get several bids.

• Try to get written bids or estimates from at least three different contractors.
• Check out the contractor.
• Get the contractor's full name, address, and phone number.
• Ask for references and call them.
• Check with the Better Business Bureau and courthouse for criminal history and civil cases against the contractor.
• For repairs that cost more than $10,000, ask the contractor for a copy of their Certificate of Registration with the Texas Residential Construction Commission.
• Be careful when dealing with contractors who have out-of-state license plates.

 Get it in writing.

• Get a written contract.
• Specify the work to be done.
• Specify the price.
• Don't sign anything you don't understand.

 Control the money.

• Do not pay for the entire job up front.
• Try to pay as little as possible up front.
• It is against the law for contractors in disaster areas to take any money up front unless they have a local office in your county or one county over for at least one year.
• Insist on waiting to pay the full amount until after the work is finished.
• You are protected by special rules if the contractor does not have a local office in your county or the next county over.
• Do not make the final payment until you have inspected the work. Make sure you are completely satisfied with the repairs.
• Do not pay in cash.