CONSUMER CORNER: Hurricane Season Has Begun … Be Prepared!

Provided by the Bucks County Department of Consumer Protection:

Now that summer is in full swing and we are hearing reports of the first, named hurricanes of the season ravaging the Caribbean and Central America, it’s time to get prepared for the extreme weather that could impact our local area during this hurricane season.

Emergency preparedness is key; from signing up for extreme weather alerts, to having a short list of pre-vetted trusted local contractors for storm damage repairs, making sure your insurance and coverages are adequate and up to date, and knowing how to file a claim when necessary, while only employing the assistance of a public adjuster as a last resort if you reach an impasse with your insurance company.

There are many things to juggle when disaster strikes, and you experience storm damage.  It is good to have a plan beforehand to avoid some of the opportunist contractors and public adjuster’s companies that may take advantage of these circumstances and cost you a percentage of your insurance claim payout, potentially leaving you without the funds to complete the repair.

 It is recommended that you also check online reviews to make sure there is no pattern of issues or red flags with a company. Attempt to negotiate the lowest percentage fee possible (typically ranging from 15-30%). This is the amount they will charge to represent you. Your goal should be to lose as little of your claim payout as possible, so you don’t have much more out of pocket expense above your insurance deductible. You should attempt to initiate and resolve all claims with your insurance company directly first. Think twice before signing over rights to have your contractor receive payment directly from your insurance company as this could lead to instances of home improvement fraud or further complications with getting your claim settled and your home repaired. If you’ve reached an impasse in securing adequate payment to complete the repair or if you receive a claim denial that you need assistance disputing first check with the Pennsylvania Department of Insurance to learn about your rights.

Reporting property damage claims to insurance can be a confusing process, but the PA Department of Insurance offers some helpful resources as well for you to be prepared. Visit:  https://www.insurance.pa.gov/Coverage/Pages/After-the-Storm.aspx for information on filing an insurance claim, vetting a public adjuster, and red flags to avoid. 

Never agree to do business with someone who shows up at your door offering to help you with your insurance claim, or to repair your property, without properly vetting them first. Some unscrupulous contractors and public adjusters may listen to emergency scanners and show up at consumer’s homes as fires, floods, and other emergencies are unfolding trying to get consumers under contract quickly, which is never to your benefit to make a rash decision without taking proper time to contact Consumer Protection and do your research to properly vet these companies. These hasty decisions often result in more headaches than help.

Bucks County Consumer Protection has mediated many such cases where consumers are left without the funds necessary to repair their homes or have contractors who have been paid directly by a consumer’s insurance company and work hasn’t been performed or completed. In all cases, the written contract is the most important and deciding factor in all disputes, so be careful what you sign and always read documents thoroughly. Do not let someone rush you to sign papers without reviewing them and understand what terms you’re agreeing to. Keep in mind, when emergency repairs are being performed, there is not always a 3 day right to cancel a home improvement as that right can be waived in emergency repair situations.

As outlined earlier, a Public Adjuster may be helpful, down the road, if you’ve hit a roadblock with your insurance company and they are denying your claim, or not paying out enough to cover the damages. However, there are other steps you should take first. If your claim is denied you should consider filing an appeal with your insurance company asking them to reconsider your claim. You can also contact the PA Department of Insurance for assistance and advice in navigating this process.

If you are unsuccessful on your own with an appeal, and the PA Department of Insurance cannot assist, then, at that point, considering a well vetted public adjuster may be an option.  Keep in mind that hiring a public adjuster from the start could leave you with typically 15-30% less funds from your claim which are likely all needed to repair your home.  This amount depends on the percentage outlined in your contract with the adjuster that you agree to relinquish to them as their payment for working with the insurance company on your behalf. Always thoroughly read any contract before signing and make sure there are no blank areas that could be filled in after you’ve signed.

Hiring a contractor can be a daunting process so it is always advisable to contact Bucks County Consumer Protection for assistance vetting a contractor. The staff can check their internal database of complaints to let consumers know if they have ever received a complaint against a particular company. They will also check to make sure the home improvement contractors you are considering hiring are properly registered with the state through the PA Office of Attorney General. Consumers can also verify a home improvement contractor’s registration status on their own to help narrow their search before calling Consumer Protection through the following website. https://hicsearch.attorneygeneral.gov/

In addition, doing a basic google search of a company for example “ABC Contracting Doylestown, PA” would be a great search format to locate any review websites with a profile for a particular company, as well as any reviews posted to a google business profile. The Better Business Bureau page, if one exists for a company, could also show additional complaints or reviews. It is always best to sort by the lowest rated reviews first so you can see if there’s a pattern of a particular issue or any red flags other consumers experienced that they’re attempting to warn other consumers considering hiring a particular company. Some unscrupulous businesses will have fake positive reviews posted to lower the negative reviews on the list of reviews and increase their average rating. Keep in mind it’s rare to see fraudulent detailed positive and negative reviews so reviewing these can help consumers make a more informed decision before settling on a particular company to entrust with their home improvement project. Once you’ve chosen a company, request a copy of their certificate of insurance and call that insurance company to verify the policy is still active, so you know you will be covered in case there is any property damage caused by the company or anyone becomes injured on the job. Make sure you do this prior to signing a contract or providing any deposit. Any company who attempts to delay providing this information or becomes defensive or apprehensive has either had issues in the past or may be uninsured, so never skip this important step. You want to avoid the long arduous uphill battle of a civil suit for a property damage claim against a contractor by having their insurance information on file because in most cases they won’t willingly provide this after they’ve caused damage to your property.

Bucks County Consumer Protection urges consumers to call the office early and often for help vetting contractors you’re considering hiring, so residents don’t chance falling victim to home improvement fraud.  Residents can also go to the Bucks County Consumer Protection web site at www.buckscounty.gov/ConsumerProtection, then click on the “Consumer Tips” tab and download the Hiring a Home Improvement Contractor booklet. This informational booklet provides tips on what must be in a home improvement contract for it to be legal, as well as red flags to help you avoid being scammed by an unregistered or non-compliant contractor. Bucks County residents may also call 215-348-6060 to ask for assistance vetting a contractor or email the office at consumerprotection@buckscounty.org and provide a list of companies you are considering hiring.

Aside from hurricanes and tornadoes, our area also experienced record flooding in recent years, where many homeowners and renters were caught without flood insurance. Most tenants don’t realize that a basic renter’s insurance policy does not cover flood damage. Tenants in basement level or first floor apartments, especially near waterways should consider purchasing a renter’s flood insurance policy to cover their belongings if their apartment ever experiences flooding. For more information on types of flood insurance for homeowners, businesses, and renters visit: www.floodsmart.gov/types-flood-insurance For example, a renter’s flood insurance policy covering up to $100,000 of personal property such as furniture, clothing, televisions, and computers could cost as little as $99 per year. Keep in mind if you purchase multiple policies through the same carrier you could qualify for a multi-policy discount bringing the cost of this policy down further by saving you on your basic renters insurance policy or auto insurance policy. Homeowner’s who may be just outside the flood zone areas requiring flood insurance or in low lying areas where storm drains have backed up and come close to flooding their homes in the past should also consider purchasing a flood insurance policy for their property.

Another proactive step towards being prepared is having a warning to alert you when emergencies are occurring.

Bucks County Emergency Management has an alert system called Ready Bucks to keep residents informed in emergencies. The system enables Bucks County Emergency Management to provide residents with critical information in a variety of situations, such as severe weather, unexpected road closures, missing persons, and evacuations of buildings or neighborhoods. Residents will receive time-sensitive messages and can specify how to be notified, whether it be at a home, mobile or business phone number, e-mail, or by text message. For more information and to register for Ready Bucks, visit: www.BucksCounty.gov/ReadyBucks.

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