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How to avoid contractor scams

Red flags

• Large cash deposits upfront — never pay more than 10–15% or ~$1,000 as a deposit, whichever is smaller, and never in cash without a receipt
• Door-to-door storm chasers — crews appearing after storms offering 'today only' pricing, especially for roofs and driveways
• Pressure to sign immediately — legitimate contractors honor written quotes for days or weeks
• No written estimate — 'we'll figure it out as we go' is how budgets double
• Offering to 'pay your deductible' — illegal in most states and a sign the invoice is inflated
• Unverifiable license or insurance — excuses why a certificate 'is being renewed'

Before you hire

1. Get the contractor's license number and verify it with your state licensing board
2. Ask for a liability insurance certificate naming you for the job
3. Get 2–3 itemized written quotes — materials, labor, permits, disposal
4. Check references from jobs completed in the last 12 months
5. Read the payment schedule: tied to milestones, never completion-of-nothing

Payment rules that protect you

• Pay by check or card — never wire transfer or gift cards
• Never pay in full before work starts
• Hold 10% until final walkthrough and punch-list completion
• For big jobs, a materials-only deposit to a supplier is safer than cash to the contractor

If you already got burned

• File with your state Attorney General's consumer protection division
• Report to the FTC at reportfraud.ftc.gov
• For licensed trades, complain to the licensing board — it has real teeth
• Dispute card charges quickly; your card's chargeback window is short