ACIC Warns So CA Homeowners to Use Caution When Choosing Contractors

The Association of California Insurance Companies (ACIC) today urged victims of Southern California’s devastating wildfires to use caution in hiring contractors or other workers to repair or replace their homes. Following are guidelines from the ACIC that you can share with your homeowners clients that have been affected by the wildfires.  
 
“As the rebuilding process gets underway, unlicensed contractors and scam artists may be looking to cash in on your misfortune,” said ACIC President Sam Sorich. “It is natural for homeowners to be in a hurry to begin making repairs following a natural disaster. However, you will save yourself a lot of time, money and frustration by taking the time to check the credentials of the businesses and individuals that you hire to repair your property.” 
 
“Before contracting for services, 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,” said Sorich. 
 
The fires caused severe damage and, in may cases, outright destruction of homes and other structures. It will require special skill and care during the clean up and repair process. As a result, ACIC urges homeowners to: 
 
* 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 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 dishonest 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 for more information. 
 
* Avoid paying with cash; use a check or credit card instead. 
 
The Association of California Insurance Companies (ACIC) is an affiliate of the Property Casualty Insurers Association of America (PCI) and represents more than 300 property/casualty insurance companies doing business in California. ACIC member companies write 41.8 percent of the property/casualty insurance in California, including 57.3 percent of personal auto insurance, 45.7 percent of commercial automobile insurance, 40 percent of homeowners insurance, 32.5 percent of business insurance and 43.4 percent of the private workers compensation insurance. PCI is composed of more than 1,000 member companies, representing the broadest cross-section of insurers of any national trade association.