Natural Disaster Scam Awareness

Emily Fay

March 9, 2025

After a storm, victims face not only damage but also the risk of scammers taking advantage of them. It’s important for property owners to thoroughly check and verify contractors before starting any cleanup or repairs. Scammers might show up immediately after a storm or a few days later, posing as street salespeople or out-of-town contractors.

According to the Office of the Attorney General of the Commonwealth of Kentucky, construction and repair scams rank number one amongst the top six reported natural disaster scams.

The following information provides tips on how to protect yourself and assist others if you come across someone offering damage cleanup or repair services that seem suspicious or concerning.

Identifying Red Flags

• Beware of unlicensed people that may attempt to rebuild your home or want to act as your construction’s consultant.
• Be suspicious of door-to-door salespeople who make unrealistically low estimates, offer free improvements, or attempt to sell their services by playing on your emotions.
• Take note of company logos, names, addresses, and phone numbers of identifying information. Be especially cautious of vehicles without any identification.
• Filter your search results of the salesperson and look for customer reviews of the business that they represent.
• Never allow a salesperson to pressure you into contracting for repairs, claiming they are needed to be done “as soon as possible.”

Screening and Interviewing Contractors

• Request a current reference list of the contractor’s clients that contains work similar to the projects in your local area.
• Verify the contractor’s commercial general liability insurance coverage by asking to see a “Certificate of Insurance.”
• Check and see how long the contractor has been licensed and if the licenses are in good standing.
• If possible, ask to meet the owner(s) of the company. Ask to what degree they will be involved.
• Deal with only local licensed contractors.

Consult Your Insurance Company First

• Always check with your insurance agent to review current coverage policies, as some contractors might attempt to mislead you about what’s covered to secure a contract.
• Local agents are more likely to verify contracting agencies within the surrounding area as they may have been used by other clients.
• Never sign any contracts until you and your insurance agent have carefully discussed the specific damages and the estimated cost of repairs.

Price Gouging

• Establish a list of potential contractors and list the estimates to make sure that the work is relevant to the damage assessment.
• Stay tuned to local and state officials for formal declarations that may include protections for consumers in a declared state of emergency. In Kentucky, the Governor of the Commonwealth of Kentucky has the sole ability to activate price gouging laws through an executive order. The law is defined by Kentucky Revised Statute Chapter 367 and prohibits grossly excessive prices in the event of a declared emergency.
• Residents may be able to report instances of price gouging by submitting a complaint to the Office of the Attorney General Division of Consumer Protection at ky.gov/fraudfighter.

This is information from the Office of the Attorney General of the Commonwealth of Kentucky, the Kentucky Department of Insurance, the Better Business Bureau, the Fair Trade Commission, the Kentucky General Assembly, and the Red Guide to Disaster Recovery.

Article by: Matthew Richardson