Gov. Kay Ivey designates May 20-24 as Contractor Fraud Awareness Week in Alabama

Contact: Jennifer Bowen
(334) 269-3550

5/20/2024

Governor Kay Ivey has proclaimed May 20 through 24 as Contractor Fraud Awareness Week in Alabama.
 
The Alabama Department of Insurance is partnering with the National Insurance Crime Bureau to help Alabamians learn the signs of fraud and ways to protect themselves from unscrupulous contractors.
 
“The most important part of a project is the time you spend vetting a contractor up-front,” said Insurance Commissioner Mark Fowler.  “Learning the difference between a good contractor and a bad contractor ahead of time will help ensure your next project is built on a strong and lasting foundation.” 
 
Ahead of the June 1 arrival of hurricane season, the NICB has some tips for homeowners.
 
Be Proactive
 
Assess Damages: If you think you have catastrophe-related damage, reach out to your insurance company, and ask for clarification on your coverage. 
 
Research and Verify Before Signing Anything
 
Research and Verify: Before hiring a contractor, research their credentials, reputation, and track record. Check for licenses, certifications, and reviews from previous clients. In Alabama, you can see if a contractor is licensed by clicking here. Also, verify their insurance coverage and inquire about any past complaints or legal issues. 

Get Multiple Quotes: Obtain bids from multiple contractors for comparison. Be wary of significantly low bids, as they may indicate substandard work or hidden costs. Aim for a balance between affordability and quality.

Beware of Red Flags: Be alert to red flags such as high-pressure sales tactics, vague or evasive answers, or reluctance to provide written estimates or contracts. Trust your instincts and proceed with caution if something seems off.
 
Stay Involved and Take Account
 
Written Contracts: Always insist on a written contract detailing the scope of work, materials, timeline, and a payment schedule that does not include large upfront payments. Review the contract carefully, ensuring that all terms and conditions are clearly outlined and agreed upon by both parties.

Stay Involved: Stay actively involved in the project by regularly communicating with the contractor and monitoring progress, while keeping records of all work communications.

Seek Legal Advice if Necessary: If you suspect contractor fraud or encounter significant problems during the project, seek legal advice promptly. A legal professional can help you understand your rights, explore options for resolution, and take appropriate action to protect your interests.



 

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