“After suffering from the effects of a hurricane consumers should not be victimized for a second time by the actions of unscrupulous businesses or scam artists,” said Joe Woods, assistant vice president and regional manager for PCI. “Consumers should beware of individuals that may use this natural disaster to unfairly profit from hurricane victims. If you experience an unreasonable spike in the price of building supplies or someone charging excessive fees to repair your home be sure to contact the attorney general’s office, because it may be a crime.”
A state of emergency was declared in Texas and under these conditions it is illegal to impose extreme increases in the price of items such as food, water, gas and building supplies. The violation of these laws carries with it harsh penalties, which may include jail time. Attorney General Greg Abbott has established a hot line 1-800- 252-8011 to report complaints about alleged price gouging.
“Not only are these actions illegal, but they increase the cost of insurance for everyone,” said Woods. “While insurers want to settle legitimate claims as quickly as possible, we will also be on the watch for scams and other fraudulent activities.”
Many important financial decisions must be made following a hurricane and often these decisions must be made in a short period of time. During these times it is particularly important that you take the time to do your homework and make decisions that will be in your long-term best interest.
If you suspect price gouging:
· Make a copy of the bill, invoice or receipt.
· Get the estimate for repairs and clean up in writing.
· Note the specific details of the item being purchased such as the manufacturer’s name, the grade and quality of the item so that an apples to apples price comparison can be made.
To avoid being the victim of price gouging:
· Plan ahead and have on hand an emergency supply kit that contains water, flashlights, batteries, portable radio and non-perishable food items. During emergency situations, these items are often subject to extreme price swings.
· Work with licensed contractors and demand that they provide proof of their licensing.
· Do not allow someone to intimidate you or pressure you into making a rushed decision about purchasing goods or services.
Before you hire a contractor to repair your property:
Check references. It can be helpful to see who is working with your neighbors who may also have claims. To maintain your trust and business, insurers devote many resources to ensure that the claims process is smooth, easy and meets your needs. Your insurer and agent are excellent resources to help you access the services you need to handle your claim.”
Be suspicious of any contractor who tries to rush you, especially on non-emergency or temporary repairs. If possible, shop around for a contractor by getting recommendations from friends and neighbors.
Never pay for work up front. Always inspect the work and make sure you’re satisfied before you pay. Most contractors will require a reasonable down payment on work, but don’t pay anything until you have a written contract.
Get three written estimates for the work and compare bids. Check credentials with the Better Business Bureau or state attorney general’s office to see if the firm has any outstanding complaints.
Always have a written, detailed contract that clearly states everything the contractor will do, including prices for labor and materials, clean-up procedures, and estimated start and finish dates. Never sign a contract with blank spaces, which a crooked contractor can alter after he’s gotten your signature.
Don’t believe a contractor who says he’s supported by the government. The Federal Emergency Management Agency (FEMA) does not endorse individual contractors or loan companies; call FEMA toll-free at 1-800-621-FEMA (3362) for more information.
Avoid paying with cash; use a check or credit card instead.
About PCI
PCI is composed of more than 1,000 member companies, representing the broadest cross-section of insurers of any national trade association. PCI members write over $195 billion in annual premium, 39.8 percent of the nation’s property casualty insurance.