Fraudsters on a roll after Sandy - Put up your own guard

Natural disasters can bring about an individual's ruin, if he or she lacks a firm financial footing. Insurance acts as a helpful prop to the unfortunate individuals who suffer losses after a natural disaster. Superstorm Sandy, the recent one in the list of calamities, has caused enough damage so that people are rushing in to file their insurance claims. Fraudsters wait to take advantage of this kind of situations. They wait to get the most out of the desperate individuals who might have just incurred heavy losses. So, you must stay on your own guard if you have been affected by 'Sandy' and are expecting financial support from your insurance company.

Tips to avoid scams post SANDY

While you're trying to cope with the losses after Sandy, the con artists might be on the look-out to extract some more money out of you. The following tips might help you to avoid scams, while you're out to get financial help from your insurer.

1. Don't pay heed to uncalled-for assistance - No individual willingly comes in to lend financial help, least of all the insurer. If any repair people or a contractor comes in to help you when you haven't even asked for it, please treat them with suspicion. There's a high chance that they are illegitimate. The Federal Emergency Management Agency doesn't endorse unlicensed contractors. You may suffer more loss in the form of unfinished or substandard work. Never trust those who try to rush you into doing the repair works as soon as possible.
2. Interact directly with insurer - If possible avoid the contractors to work as middleman between you and your insurer. Approach your insurer directly when you file for your insurance claim. You can thereby avoid paying them extra charges. Moreover, insurance companies have tie-ups with experienced contractors, who might work for you later on.
3. Compare estimates - Don't trust and go ahead with a single contractor. Go out in the market and ask the contractors for estimates. This will give you an idea about the actual extent of damage and costs for repairs. Compare at least three estimates for damage repair.
4. Do a background check on the contractors - Check with the Better Business Bureau and find out whether the consumers have filed complaints against the contractor. Before you entrust the contractor with your repair works, ensure that he has a valid license for working in the state and also that he is insured.
5. Don't pay in full till repair work is complete - The contractors usually demand for a down payment as they start off with the repair works. The down payment shouldn't be more than one-fourth of the total cost. The full payment should only be made after the repair works are completed and you're fully satisfied with the work after inspection.

Insurance companies will never pay for any extra rebuilding costs. They will only pay to put you back in a position in which you were before the accident. They usually try to wrap up the repairs at the lowest cost possible and therefore ask for the multiple estimates. Individuals are not only fooled while making their property insurance claim after a disaster, they might also fall into the traps of false auto dealers. The National Insurance Crime Bureau warns the policyholders as well as the insurers about the rise in frauds after Sandy. Every detail should be scrutinized while going for the property repairs and claim procedure.