Natural Disaster Scams That Homeowners Should Be Aware Of

Natural calamities can bring out the best and worst in people. While many of us are concerned with safeguarding the safety of our relatives and neighbors, some unscrupulous individuals may use the commotion and confusion around a disaster to gain money. After a natural disaster, it is prudent to err on caution because dishonest contractors and organizations are out there.

Following a natural disaster, con artists may attempt to defraud you in the following ways, and you must take precautions to protect yourself.

Common Scams Following a Natural Disaster and How to Avoid Them

1) Bogus Contractors

In the days following a natural catastrophe, you may encounter individuals claiming to be contractors in your neighborhood offering their services to residents, including debris removal and roof repairs. Although some of these contractors may be reputable, you should always be suspicious of uninvited visitors. On the surface, these unexpected visits may appear like an answer to prayer, especially if your home is devastated and your emotions are running high. However, con artists may demand payment in advance and fail to complete the work or give insufficient services with no recourse.

Several red flags to watch for include:

• Demands for advance payment
• Claims of a one-day sale are false
• Aggressive or fear-based sales tactics
• Failure to offer references
• Lack of evidence of business or professional licensing
• Failure to give evidence of a physical business location

2) FEMA and Insurance Adjuster Imitators

Identity thieves frequently mimic FEMA officials and insurance agents. These fraudulent officials will seek access to your personal information, such as your social security number or other identifying information. Scammers may then use this information to steal money supplied by the government or because of a homeowner's insurance claim intended for house repairs or living expenses following a natural disaster.

Only provide your claim number if you receive phone contact from a FEMA agent or an insurance adjuster. They must have access to any additional information necessary to complete your claim. Occasionally, a fraudster will say they will expedite your FEMA claim for a cost. This is a rip-off. FEMA offers no paid expedited claim service.

To avoid falling victim to impersonators, always request verification that the individual is who they claim to be. If you've received a suspicious phone call from someone purporting to be from FEMA or your insurance company, hang up and dial the organization's number immediately. Ensure that a representative that visits your home has valid identification. If you have any concerns, request they leave and contact the organization directly.

3) Fraudulent Charity

It is not commonplace for bogus charities to request donations after a natural disaster. These con artists can be highly astute and are adept at using people's sympathy for those affected by the tragedy. Before donating, if you are contacted by someone claiming to work for a charity, perform your due diligence. If it's a charity you're unfamiliar with, seek them up on a watchdog website such as Charity Navigator or CharityWatch and verify their BBB listing.

Here are some red flags to be aware of if a charity calls you:

• Aggressive solicitation of donations
• Reluctance to provide a call-back number or other contact details
• Guarantee of entry into a contest or drawing
• Request for a wire transfer of cash
• Request for funds by letter to P.O. box
• Demand for personal or financial data

To remain on the side of caution, you can always call the charity personally or choose a well-known group such as The Red Cross or United Way.