How to Avoid Common Home Improvement Contractor Scams (Storm, Insurance & Bait-and-Switch)

1. The storm chaser

After a hailstorm or hurricane, out-of-state crews flood the neighborhood offering 'free roof inspections.' They climb up, manufacture damage, and pressure you to sign over your insurance check. Real local contractors do not need to chase storms.

2. The insurance assignment of benefits trap

Never sign an Assignment of Benefits (AOB) on the first visit. AOBs hand control of your insurance claim to the contractor — including the right to sue your insurer in your name. Read every line.

3. Bait-and-switch bids

The salesman quotes Brand A materials. The crew shows up with Brand C. By the time you notice, the cabinets are installed. Defend yourself by listing every brand and model number in the contract.

4. Material substitution mid-project

Especially common on flooring, tile, fixtures, and appliances. Demand to see and sign off on physical samples or model numbers before installation.

5. The disappearing deposit

Big deposit, no work, no contractor. Limit deposits to 10–33% and tie all other payments to milestones.

6. Fake reviews and stolen photos

Reverse image search the photos on a contractor's website. Cross-check reviews across Google, Yelp, Angi, and the BBB. Look for review patterns that match real timelines, not 40 five-star reviews posted in the same week.

What to do if you've been scammed

File a complaint with the state contractor licensing board, the state attorney general's consumer protection office, your local BBB, and your credit card company if you paid by card. Time matters — most agencies have filing windows.

Prevention is everything

Once a contractor scammer has your money, getting it back is brutally hard. The single best protection is upfront vetting. SMC Home Improvement only matches you with contractors that have passed license, insurance, BBB, review, and history checks — for free.