It's severe weather season: Watch out for contract fraud

AAA is offering insurance advice and a word of caution for Tennessee residents whose homes may suffer damage from tornadoes, severe weather, and flooding events this spring.

"Once conditions are safe to do so, begin documenting damage and contact your insurance provider immediately," said Megan Cooper, spokeswoman for AAA – The Auto Club Group. "The sooner you start the process, the faster you can repair the damages."

Filing an Insurance Claim

In most cases, residents who suffer wind damage to their home will need to file a claim through their homeowner's policy. Alternatively, residents with damage to their vehicle would file with their auto insurance provider. This type of damage normally falls under what's called "comprehensive" coverage.

To file a claim, residents should contact their insurance provider directly. Providers offer multiple ways to file a claim, whether that be over the phone, online or a mobile app.

Be Cautious of Dishonest Contractors

"AAA is urging homeowners to be leery of contractors who go door-to-door in damaged neighborhoods offering cleanup or repair services after a catastrophe," said Cooper. "While some of these workers may be honest and reputable; there are those looking to take advantage of residents at their most vulnerable time."

Dishonest contractors may try to pocket more profit by:

Accepting payment then never completing (or even showing up for) the job.Using inferior materials or performing shoddy work that's not up to code.

Tips to avoid fraud after a catastrophe:

Work with the insurance providerCall the insurance company first if there may be damage from a storm or other disaster.Make sure to review and understand all documents sent to the insurer.The homeowner should never let a contractor discourage them from contacting their insurance company.Be on the lookout for people calling and saying they are with a national carrier. Do not provide any personal information over the phone without them first confirming a claim number. If something sounds fishy, report it to the insurance company immediately.Note that insurance carriers will never ask customers to pay their deductible up front or over the phone.

Hire a Contractor

Get more than one estimate. Never let a contractor pressure into hiring them.Work with only licensed and insured contractors.Request references and check them.Ask to see the salesperson's driver's license, write down the license number and their vehicle's license plate number.

Get the Work Done

Get contract terms in writing. Cost, time schedules, payment schedules, guarantees, work to be done, and other expectations should be detailed.Never sign a contract with blanks.Never pay a contractor in full or sign a completion certificate until the work is finished, and ensure reconstruction is up to current code.

If You Didn't Request it - Reject it

Anyone who believes they've been approached by an unlicensed contractor or adjuster, or have been encouraged to fabricate an insurance claim are encouraged to contact their insurance company or the National Insurance Crime Bureau immediately.

Reporting Insurance Fraud

Anyone with information concerning insurance fraud can report it anonymously with the National Insurance Crime Bureau:

Call 800.TEL.NICB (800.835.6422)Submit a form online at www.nicb.org/reportfraud

Flooded Vehicles

Widespread flooding will likely result in significant damage to vehicles. Flooding is often covered by "comprehensive" auto insurance policies. However, because Tennesseans are not required to carry this coverage option, some may not be protected.

When a car has been partially or completely submerged, AAA recommends the following:

Do not attempt to start a vehicle if the water level rose above the door opening and the interior of the car is wet. Doing so could cause irreversible damage to the vehicle's engine and other components.Take photos from the exterior of the vehicle. Do not open the doors if the water levels are still high.Once the waters have receded, take photos of the interior.Contact the insurance provider.Have the vehicle towed to a mechanic for a full inspection to ensure it's safe to be driven.

Avoid Self-Inflicted Flood Damage While Driving

Do not drive down flooded streets. It is hard to determine how deep the water is or what's lurking underneath.

If driving through a flooded area, with water above the doors and the engine cuts off, do not try to restart it. Doing so could flood the engine. Instead, quickly exit the vehicle and go to a safe location to call for help.