After the Storm: Tips to Avoid Contractor Fraud

Insurance Commissioner issues a consumer alert.
October 20, 2020

Louisiana Insurance Commissioner Jim Donelon warns residents affected by hurricanes Laura and Delta that the Louisiana Department of Insurance has received complaints of contractors working in hard-hit areas requesting full payment of insurance settlements before any work is completed. Insurance checks are usually written to the policyholder or the policyholder and the mortgage holder jointly. Those receiving insurance checks should retain control of the funds and pay any contractors as they reach contractually indicated milestones, Donelon recommends.

CONSUMER ALERT: Tips to Avoid Contractor Fraud

“It’s the sad truth that large natural disasters with a lot of property damage attract dishonest dealers from in and out of state,” said Donelon. “Unfortunately, once a scam artist has made away with your initial payment or full settlement, recovery can be very difficult. I advise all consumers to be vigilant when hiring construction assistance in the aftermath of this devastating hurricane season.”

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