The aftermath of a severe storm is stressful, leaving homeowners anxious about roof or other property damage. That’s when an unscrupulous contractor might knock on your door offering a free roof inspection or quick repairs to protect your home. They may sound convincing and helpful, saying: “We’ll handle your insurance. You don’t need to call your agent.” This is a time to be vigilant. Before you agree to anything, speak with an insurance agent who understands your homeowners insurance. Recent storms and scam alerts in Connecticut show why you should have that conversation before you sign any paperwork.
What Is a Storm Chaser Contractor?
Storm chasers are contractors who travel to neighborhoods hit by severe weather and other natural disasters, looking for roofing, cleanup, or repair work. Connecticut’s attorney general and consumer protection officials warn that storm-chasing contractors may go door-to-door offering low prices, pressuring homeowners to act quickly, or promising that insurance will cover the work.
Some perform substandard repairs or leave jobs unfinished, while others accept money and never return, according to the National Insurance Crime Bureau (NICB). NICB also advises homeowners against taking advice from contractors who attempt to interpret their insurance policies or discourage them from contacting their insurer.
Warning Signs To Watch For
The Connecticut Insurance Department’s post-storm scam alert identifies several warning signs of fraud:
- Pressure tactics: A “today only” offer, demands for an immediate signature, or claims of leftover materials from another job
- Payment demands: Demands for full payment before work begins or a large cash deposit
- Missing credentials: Refusal to provide proof of registration, licensure, insurance, or references
- Insurance promises: Guarantees of claim approval, larger settlements, deductible waivers, or requests to sign over claim benefits
An assignment of benefits can transfer the rights under your home insurance policy to a contractor. Before signing, understand which rights the document transfers and how it affects your role in the claim. Do not assume paperwork presented as an inspection authorization only permits an inspection.
A contractor can legitimately provide estimates and discuss repair details with your claims adjuster. That is not the same as letting them take over your claim or decide what your homeowners policy will cover. Only your insurer determines coverage and payment.
What Connecticut Law Requires From Home Improvement Contractors
If you’re hiring a contractor for home improvements in Connecticut, make sure they’re registered with the Department of Consumer Protection (DCP). You can look up their business name or registration number in the state’s eLicense database to confirm their credentials. Also, verify that the registration matches the company listed on your contract. Ask for proof of insurance, and speak with a few of their references — registration alone doesn’t guarantee you’re working with a reputable or qualified professional.
Connecticut law requires a written contract before a contractor starts any home improvement project. The contract should clearly list the contractor’s name and registration number, explain the work and price, and specify when the job will start and finish. Make sure you and the contractor both sign and date the contract. Keep a complete signed and dated copy for your records, including the required notice explaining your right to cancel. If you see any blanks, don’t sign until everything is filled in.
In Connecticut, you generally have until midnight on the third business day after signing to cancel, according to the DCP. Saturday counts; Sunday and specified holidays do not. Emergency work may qualify for a cancellation waiver, so read it carefully.
How Your Homeowners Insurance in Connecticut Fits In
After a storm, if you need repairs, contact your agent and your homeowners insurance company as soon as possible. Your agent can explain your home insurance coverage, deductible, and claim options. Your home insurance company reviews the claim and decides if and what it will pay. A contractor’s promise does not make your damage a covered loss.
In its September storm advisory, CID urged residents to check wind and tree-damage coverage, policy limits, and additional living expenses. Dwelling coverage pays to repair the structure of your house, while other structures coverage applies to fences and detached garages. Personal property coverage applies to furniture and other personal items, and personal liability coverage protects you if you’re held liable for someone else’s injury or property damage. If a covered loss makes your home unlivable, additional living expenses coverage helps pay for temporary housing.
Check whether your policy pays replacement cost or actual cash value. Replacement cost coverage pays to repair or replace damaged property without subtracting depreciation. Actual cash value coverage subtracts depreciation, which leaves more of the cost coming from your own pocket. That difference can explain why a contractor’s estimate doesn’t match your claim payment.
Standard homeowners insurance policies typically exclude flood damage, so you’ll need a separate policy for flood insurance, available through the Federal Emergency Management Agency’s National Flood Insurance Program or PRIVATE FLOOD COVERAGE through carriers that offer flood policies. Ask your agent about exclusions and coverage options such as sewer backup, which may require an endorsement.
Before you start cleaning up, take photos of all damage to your roof, siding, cooling systems, and personal property. Make temporary repairs, like tarping a roof, only if needed to prevent more damage, and save all receipts. Do not start permanent repairs until you have spoken with your insurance company, unless waiting would cause more harm. Get several written estimates that clearly list building materials, work to be done, and the full cost of repairs.
Make Your Agent Your First Call
Before you sign any repair contract or transfer your claim rights, contact Brooks, Todd & McNeil. Our licensed in-house claim facilitators will review your coverage and deductible with you, so you know what to expect before you commit to repair expenses.
FAQ About Contractor Scams in Connecticut
Can a contractor pay my insurance deductible?
If a contractor says they’ll cover your insurance deductible, it’s a warning sign. The deductible is the amount you pay out of pocket for a claim. Be cautious of contractors who offer to inflate invoices or hide discounts to help cover your deductible. Misrepresenting repair costs to your insurance company could result in a denied claim and may constitute insurance fraud. Before accepting any discount or deal, check with your insurer to make sure everything is above board.
Can I cancel a home improvement contract in Connecticut?
In most cases, you can cancel a home improvement contract within three business days. Follow the instructions in the cancellation notice, send your signed cancellation before the deadline, and keep a copy for your records. If you have questions about emergency waivers or cutoff dates, contact the Department of Consumer Protection.
Where do I report a contractor scam in Connecticut?
Report contractor scams to the Department of Consumer Protection or the Attorney General. For scams involving insurance, contact the Connecticut Insurance Department at (800) 203-3447.
About the Author
Stephen G. Todd, CPCU CIC is owner, President and CEO of Brooks, Todd & McNeil, bringing more than three decades of experience across underwriting, claims, and agency leadership. He began his career with Travelers Insurance Company, where he held roles in Home Office Finance, National Account Claims litigation, before serving as a commercial lines underwriter with American States Insurance Company. Since joining Brooks, Todd & McNeil in 1991, Stephen has led key operational areas and helped drive innovation, including the development of the insurance industry’s first real-time personal lines comparative rating system. A recognized industry leader, he has served on numerous carrier advisory councils and remains actively involved in both professional and community organizations.
About Brooks, Todd & McNeil
Since 1839, the independent agents at Brooks, Todd & McNeil have been pleased to offer our community policies from a variety of providers. To learn more about our products and services, contact us today at (800) 448-4567.