LETTER FROM MATT WEBER

FROM MATT WEBER

If there is one thing I can’t stand, it is dishonest people who take advantage of others. Unfortunately, there are a lot of

them out there. According to a new study from Porch.com, home-improvement scam reports more than doubled each year from 2018-2020, reaching 30,337 fraud reports in 2020—by far the largest number on record.

Home-improvement scams during the first two years of the COVID-19 pandemic (2020-21) totaled more than $82 million. In 2021, the median amount lost to these scams was $1,700, or 3.5 times the amount lost to all other scams ($500). This data comes from fraud reports tallied by the Federal Trade Commission, so if a scam goes unreported, it’s not counted in this total.

A scam generally involves an unscrupulous contractor who secures payment for services they never fulfill or for doing shoddy, negligent work that fails to adhere to the contractual agreement.

Using Better Business Bureau’s Scam Tracker, Porch.com was able to parse out individual reports filed under “Home Improvement” as of 2015 to see what types of projects and contractors were mentioned the most.

Many scams are related to roofing, including repairing a roof, installing a new roof, or shade roofing contractors. Since 2015, as many as 15 percent of all home-related scam reports received by the BBB were roof projects. In addition, painting and painter scams were mentioned in 5.6 percent of all reports, while both paving and concrete projects were referenced by roughly 4 percent.

These scams are not usually committed by contractors with a shining list of referrals, so it’s a good idea to deal with reputable professionals by asking for personal references and checking for online reviews. If you’re new to a particular area, ask the prospective contractor for a list of their satisfied customers for you to contact and confirm their work ethic. Don’t just ask a contractor if they have insurance, ask to see a copy of it.

Keep an eye out for red flags. If the contractor asks for a large down payment before they’ll start doing any work, that’s a red flag. It is typical to collect for materials or an advance toward securing large-ticket items such as cabinetry or countertops, but not for labor that has yet to be performed. In some states, contractors are prohibited by law to exceed a certain down-payment cap. Whether or not your locality has those regulations, you should expect to fork over a down payment of 10–25 percent of the total project cost.

Another red flag is a vague contract. The scope of work and every single detail should be included in your written agreements, including materials, supplies, equipment, subcontractors—everything that goes into your project. This is because any additional work not stipulated in the signed contract will be amended as a “change order,” each of which will add extra cost to the project.

Your best move is to do your homework on potential contractors, stick with reputable professionals, and always trust your instincts if your Spidey sense starts tingling.

PUBLISHER JEREMY HOLLINGSWORTH jeremy@HIRpub.com

EDITOR-IN-CHIEF MATT WEBER matt@HIRpub.com ADVISORY BOARD JIM BUTTERS RANDY STEPHENSEN DUSTIN SCHWAIGER RICHARD HAMILTON EDITORIAL CONTRIBUTERS CARTER SWIFT TOM MATTHEWS

COPY EDITOR DIANE WEBER AD DESIGN/COORDINATION SPECIALIZED MEDIA SERVICES, INC. ads@HIRpub.com

PRODUCTION MANAGER SHANNA QUIGLEY

CREATIVE DIRECTOR WESLEY GLASSCO wesley@HIRpub.com ONLINE/SOCIAL MEDIA DEVELOPMENT GLORIA BERRIO

Home Improvement & Repairs is published by Pine Mountain Media Group LLC, 130 Inverness Plaza, Suite 226, Birmingham, AL 35242. All rights reserved. Neither this publication nor any part of it may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without permission. The editorial content is intended to explain and simplify home-improvement tasks. Tools, products, materials, techniques, building codes and local regulations change. We assume no liability for omissions, errors or the outcome of any project. The reader must always exercise reasonable caution, follow current codes and regulations that may apply, and is urged to consult with a licensed professional if in doubt about any procedures.

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