Home damaged in winter storm, freeze? How to avoid scams in search for repair contractors

Editor's note: The Statesman is making this story about Austin winter weather free for everyone to read as a public service. If you don't already, please subscribe today at statesman.com/subscribenow.

Scam artists live for emergencies, like the current cold snap bringing Texas to its knees, but authorities say you can take steps to protect yourself.

Already, state officials are warning of a phishing scam going around social media soliciting private utility account numbers, promising to restore electricity to those caught in power outages. Don't fall for it, authorities warn. Your private information isn't needed to restore power.

There is a scam circulating on social media asking customers to text their private account numbers. Don’t do it! We don’t need any of your info to get your power back on – we are working as fast as we possibly can.

— ERCOT (@ERCOT_ISO) February 16, 2021

And since the winter storm has caused a plague of frozen water lines and broken pipes, you can be sure grifters are waiting in wings to take advantage of those desperate to repair their flooded homes. The Texas attorney general's office of consumer protection warns against unsolicited door-to-door home improvement offers. If your home needs repairs, state and local officials say your best bet is to call a few plumbers or home repair companies in your area for bids and then check references, licenses and for complaints.

Check for licensed plumbers in Texas here.

Check for licensed electricians, HVAC professionals and others here.

Check for complaints with the Better Business Bureau here.

Before you hire

Take time to carefully select the person who will work on your home. It's a good idea to choose a contractor with an established physical address. Be sure you can find anyone who has done work on your house in case problems arise.

Obtain at least three bids for your project and carefully compare them. The lowest bid may not always be the best value. All contractors are required to obtain permits for their work (the city of Austin's exemptions are listed here), thus be wary of a contractor who asks you to obtain a permit on their behalf and check claims that no permits are required. The party that obtains the permit is ultimately held responsible for work that does not meet city code. Additions or alterations to your home contrary to city code may affect title transfers or insurance requirements should you decide to sell your home. Use only licensed trade contractors and request proof of a current license. The following trades require a license: electricians, plumbers, air conditioning contractors and irrigation contractors. Trade contractors must be licensed by the state of Texas and must be registered with the city of Austin before getting a permit and performing any work. Request and verify references and request to see a list and photos of projects similar to yours. Check with the Better Business Bureau for any complaints about your contractor. Before your project begins, request proof of a building permit and any required trade permits. During the project, monitor your contractor’s inspection records.

More: Austin's water utility offers these tips for protecting your pipes

Contracting scams

If you spot any of these tactics, stop and walk away, state authorities say. You're probably being scammed.

They contacted you. When you contact a business, you know who's on the other end of the line. But when someone contacts you first, you can't be certain they're whom they say they are. Email addresses and caller ID information can be faked. Don't sign a contract with blanks in it. If the blanks get filled in later, the new terms are not likely to be in your favor. Don't sign a contract until you have carefully read and understood every word. Depending on the nature of the work, you may wish to specify the kinds (grade or thickness) of materials that will be used. Don't be rushed into signing a contract. The sales person should be willing to leave the contract with you so you can read it carefully on your own time. If anyone rushes you or tries to make you sign on the spot, or will not leave a copy for you to study, you should be suspicious of that person and the contract. A notice of cancellation — giving you the right to change your mind within three business days — must be included if the transaction occurs at your home. It can be difficult to get out of a signed contract. And most contractors will not allow you to change your mind for free about what you want done or how you want it done. Often a contractor will require a service charge for changing the work order, and this should be covered in the contract. Get and keep copies of everything you sign at the time you sign it. Beware of the "low-ball" bidder whose price is much lower than everyone else's. Question the quality of the materials that will be used and the work that will be done. A very low bidder may not plan to include all the specific tasks you might expect, and may use very cheap, inexperienced labor, or second-rate materials. Most of legitimate bids should fall into a fairly close range. Don't pay for everything upfront. Most contractors will ask for partial payment before work begins (except in certain cases after a disaster when that is not allowed). However, scammers in door-to-door rip-offs notoriously will ask for payment in full in advance and then disappear before completing the work. You should not pay in full until the work is complete and you have inspected it yourself and found it satisfactory. A payment schedule usually will specify at which points in the job partial payments are due. Inspect the work and make sure the contractor has met the schedule before making payments. Don't sign a certificate of completion until all work is completely finished, the site is cleaned up, and you are satisfied.

More: Generators on at Austin Pets Alive after call for help

Charities

In addition, the Federal Trade Commission has these tips for those who want to give aid:

Watch for organizations that are using names that closely resemble better-known, reputable organizations. An example might be givetotheredcross.org rather than redcross.org. Be wary of groups that won't provide proof that a contribution is tax deductible. Watch out for those that thank you for a pledge you don’t remember making. Avoid anyone who uses high-pressure tactics, such as trying to get you to donate immediately without giving you time to think about it and do your research. Finally, never give to anyone who asks for donations in cash or asks you to wire money.

If you run across a charity you fear might be a fraud, drop a line to the Department of Justice at disaster@leo.gov, which tracks and works to shut down such scams.

This article originally appeared on Austin American-Statesman: Home damaged in winter storm, freeze? How to avoid scams in search for repair contractors

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