TN Attorney General’s Division of Consumer Affairs Offers Storm Damage Recovery Tips

NASHVILLE—Following the recent severe weather across Tennessee, the Tennessee Attorney General’s Division of Consumer Affairs offers the following tips for those impacted by the storms: 

ADDRESS FINANCIAL OBLIGATIONS: Contact your insurance company, mortgage lender, credit card company, and other creditors to let them know about your situation. Most of them have ways to help. If you can’t live in your home, check with your utility companies to see if you can shut off services such as electric, gas, and cable to reduce expenses.

FILING INSURANCE CLAIMS:

• After a disaster, file your claim as soon as possible. Call your insurance company or agent with your policy number and other relevant information. Your policy may require that you make the notification within a certain time frame.
• Be certain to give your insurance company all the information it needs. Incorrect or incomplete information will only cause a delay in processing your claim.
• If your home is damaged to the extent that you cannot live there, ask your insurance company if you have coverage for additional living expenses.
• Document the disaster by taking photographs or video of any damage.
• Make the repairs necessary to prevent further damage to your property (e.g., cover broken windows, leaking roofs, and damaged walls). Don’t have permanent repairs made until your insurance company has inspected the property and you have reached an agreement on the cost of repairs.
• Maintain any damaged personal property for the adjuster to inspect.
• Ask the adjuster for an itemized explanation of the claim settlement offer.
• Save all receipts, including those from the temporary repairs covered by your policy.

HIRING CONTRACTORS: Before hiring a professional such as a contractor, consumers should first verify that the individual is properly licensed to work in Tennessee by visiting www.verify.tn.gov  to conduct a license check. Get references from people you trust and look up reviews and complaints for the business on independent platforms such as the Better Business Bureau's website. The more platforms you check, the better. Keep an eye out for these red flags:

• Door-to-door sales: Be wary of contractors selling repairs door-to-door, especially when they offer deep discounts that seem too good to be true.
• High-pressure sales tactics: Avoid those who offer services for a short time only, which can make you feel rushed and unable to research them properly.
• Demand of full payment upfront: Tennessee’s Home Improvement law prohibits contractors from asking for a down payment of more than 1/3 of the total contract. Don’t pay more than one-third down and do not let the payments get ahead of the work.
• Reluctance to pull permits: If the contractor asks you to pull your own permits, that’s a warning sign. The person performing the work should obtain the building permits, not the homeowner.
• Insistence on cash-only payment: Never pay with cash and never sign over your insurance check.Refusal to set out terms in writing: Contractors that don’t offer written estimates or don’t provide a contract should be avoided. Contracts should include details such as the start and completion dates, payment terms, installation costs, allowances, materials, labor, change orders, and warranty information. Consumers should retain a copy of the contract.

VEHICLE TIPS: If your car was submerged in at least a foot of standing water for more than an hour, have it checked out by a repair shop. Even if it runs, hidden damage could pose problems later. If a disaster has left you in need of a new or used automobile, the Tennessee Motor Vehicle Commission urges consumers to be wary of vehicle scams:

• Always buy from a licensed seller. Check a salesperson’s license at www.verify.tn.gov before you buy.
• Do your due diligence before you buy. Research the car’s value. Take a test drive and get a vehicle history report at vehiclehistory.gov. If purchasing a used car, have an independent mechanic inspect the car.
• Get copies of all paperwork. Don’t leave without copies of everything that you signed. 

AVOIDING SCAMS: While many people seek to help during times of disaster, unfortunately there is also an increased risk for scams and fraud. Watch out for:

• Upfront fees to help you claim services, benefits, or get loans. No government agency charges application fees.
• Con artists posing as government employees, insurance adjusters, law enforcement officials, or bank employees. Confirm credentials by calling the agencies directly if necessary.
• Organizations with names similar to government agencies or charities.
• Limited time offers. Don’t be pressured to make a decision on the spot or to sign anything without having enough time to review it.
• Fake rental listings. If the offer sounds too good to be true or the property owner can’t show you the property beforehand, it’s a bad sign.

REPORT MISCONDUCT: Be wary of price gougers. Look for sudden, dramatic increases in the price of essential goods such as food, fuel, lumber, and lodging right before, during, or after a natural disaster. Consumers can learn more about price gouging here. 

To file a complaint with the Attorney General’s Office Division of Consumer Affairs about deceptive business practices such as price gouging, visit www.tn.gov/consumer. 

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