Louisiana Insurance coverage Commissioner Jim Donelon and State Consultant Jonathan Goudeau are warning residents affected by Hurricanes Laura and Delta that each the Louisiana Division of Insurance coverage and Rep. Goudeau’s workplace have acquired complaints of contractors working in hard-hit areas requesting full fee of insurance coverage settlements earlier than any work is accomplished.
Insurance coverage checks are normally written to the policyholder or the policyholder and the mortgage holder collectively.
These receiving insurance coverage checks ought to retain management of the funds and pay any contractors as they attain contractually indicated milestones.
“It’s the unhappy reality that giant pure disasters with a whole lot of property injury entice dishonest sellers from out and in of state,” stated Commissioner Donelon.
“Sadly, as soon as a rip-off artist has made away along with your preliminary fee or full settlement, restoration will be very tough. I counsel all shoppers to be vigilant when hiring building help within the aftermath of this devastating hurricane season.”
Earlier than any work is began, request a clearly worded, itemized contract with the identify of the builder included.
Assessment it with the contractor and be sure you perceive and agree with its contents earlier than the contract is signed.
The contract ought to embrace the next:
- A separate breakout of labor and value of supplies.
- An agreed upon schedule for the home-owner to make funds as building milestones are achieved.
- The contractor’s accountability to get all required permits.
- The date the undertaking is to start and the date it’s to be accomplished.
- Proof of insurance coverage protection from the beginning date to the end date.
- A press release guaranteeing that the work space will likely be left in its unique situation when the job is completed.
- If potential, go one step additional and ask that the contractor’s insurance coverage service mail a certificates of insurance coverage protection on to you.
- Lastly, owners ought to solely pay as work is accomplished and will by no means work with contractors who should not licensed by the state of Louisiana.
You may verify contractor licenses by visiting www.lacontractor.org or calling the Louisiana State Licensing Board for Contractors at 1-800-256-1392.
You may also go to the Higher Enterprise Bureau at www.bbb.org to see opinions of some contractors.