FOR RELEASE: June 14, 2007

FOR INFORMATION:

Mary Bonelli/Mitch Wilson – 614.228.1593

BBB of Akron: Victor Wlaszyn – 330.253.4590
Canton BBB: Mike Paris – 330.455.8202

Insurance Institute and area Better Business Bureaus offer contractor hiring tips 

COLUMBUS–While losses from last Friday’s storm (June 8) that produced tennis ball-sized hail in the Akron-Canton area are still being assessed, the Ohio Insurance Institute (OII) is joining forces with the Better Business Bureaus of Akron and Canton to educate area residents regarding the hiring of out-of-state contractors to repair storm damage.

“Out-of-state contractors have been known to seek out and canvass hail-damaged neighborhoods offering to repair roofs or make other home repairs without proper licensing or bonding,” said Daniel J. Kelso, OII president.

Akron Better Business Bureau President Vic Wlaszyn adds this warning, “Our experience shows that many of these contractors fail to carry Ohio Workers Comp insurance. Should one of these workers injure themselves while working on your home, you may be liable for covering the medical bills and any other further legal action taken by the injured party.”

OII also warns homeowners about signing any repair contracts prior to contacting their insurance carrier to guide them through the claims settlement process.

“There are cases where outside contractors illegally cross the line by stepping into the role of public insurance adjusters who are required to be licensed through the Ohio Department of Insurance,” he explains. “This could lead to the homeowner paying more for hail-damage repairs than originally anticipated.”

Mike Paris, President of the Canton Better Business Bureau, noted that damage to roofs in the affected areas is mostly minimal.

“I would caution homeowners that their damage may not necessarily equate to obtaining an entire new roof or home re-siding as some contractors might lead them to believe,” he said.

Although the homeowner ultimately decides who is hired to complete repairs, insurers and local better business bureaus may be sources for reputable and reliable contractor leads.

“Also, ask for contractor referrals from families and friends,” said Kelso.

Both Better Business Bureau leaders warn local area contractors about selling their company name to outside contractors. Potential future claims regarding incomplete repair or poor workmanship against the out-of-area company ultimately become the responsibility of the local firm, and could end upaffecting the company’s reputation and bottom line.

To protect against the possibility of dishonest contractors, the organizations offer the following tips:

•  Obtain more than one estimate. Don’t be bullied into signing the first contract that is presented to you.
•  Obtain all information in writing, including cost, work to be completed, repair time and payment schedules, contractor guarantees—and make sure all details are provided.
•  Ask for references and check them. The Better Business Bureaus of Akron and Canton can serve as additional points of reference.
•  Ask for the contractor’s drivers license and write the number down along with a description of the vehicle and license plate number.  Some contractors come into disaster areas from out of state when damage is widespread and may not be licensed or bonded meaning you may be liable for on-premise injuries.
•  Never sign an incomplete or blank contract. There’s never a quick fix to home repairs or new roofs as some unscrupulous contractors may lead you to believe. 

•  Never allow your contractor to serve as your negotiator with your insurance company. Should a consumer allow the roofer or contractor to negotiate on their behalf, damage claims may be over-inflated or in some cases, damage may be nonexistent. Insurers are not obligated to cover false or over-inflated claims, which may end up costing the homeowner.
•  Don’t pay for the repairs or sign a certificate of completion until all work has been completed in accordance with the contract specifications.

•  Be wary of door-to-door contacts, fliers or telemarketing calls soliciting repair work. The homeowner should take the lead role in contacting companies to handle repairs and not be guided by potentially false or fraudulent marketing tactics.

•  Watch for padded repair estimates. This is especially true if the repair estimator asks ahead of time for the amount of your homeowners insurance deductible. Often these are included in the repair estimate as an added incentive to use that particular roofer or home repair contractor.
•  Don’t be tempted to conspire in a fraudulent insurance claim. Insurance fraud is a felony. Disaster repairs often heighten the opportunity for insurance fraud and abuse. Also, be aware that insurance coverage may be void if a policyholder’s intentional misrepresentation is discovered.

The Ohio Insurance Institute is a trade association representing insurance companies and agent groups for the property/casualty industry. Its main objective is to increase understanding of insurance and related safety issues.

–30–

Additional online resources:

Better Business Bureau of Akron

Canton Better Business Bureau

OII contractor/repair tips
Settling a homeowners insurance claim

Home Contractors: Tip-offs to Potential Rip-offs (Better Business Bureau)

Protect Your Home Against Hail Damage (Institute for Business & Home Safety)

Disaster Fraud: Dont be Victimized Twice (National Ins. Crime Bureau)

Ohio Department of Insurance public adjuster info