After the Storm: Hiring Contractors Under Federal Advice and State Law

What the FTC tells storm victims

The FTC's guide to avoiding scams after weather emergencies lists the tells. A contractor claims no license is needed, offers a discount that only applies if you sign right away, asks you to sign over your insurance check, or wants everything paid up front by wire transfer, gift card, payment app, cryptocurrency or cash. Blank contracts and a lender the contractor happens to know are on the list too.

The protective steps are just as specific. Confirm the license with your state or county government and ask for proof of insurance, collect written estimates from more than one contractor, pay by credit card or check, and hold the final payment until the work is finished to your satisfaction. The same page puts one warning bluntly: anyone who wants money to help you qualify for FEMA funds is running a scam.

What FEMA adds

FEMA's disaster fraud page says FEMA never charges a fee for an inspection, its inspectors wear an official government badge, and they never ask for your nine-digit registration number because they already have it. For repairs, FEMA advises licensed or verified local contractors with reliable references, a written description of the job with guarantees, and no more than half the repair cost paid in advance.

The federal three-day rule and its emergency exception

The FTC's Cooling-Off Rule lets you cancel certain sales until midnight of the third business day: sales of $25 or more made at your home, and $130 or more at a seller's temporary location. Saturday counts as a business day; Sunday and federal holidays do not.

Storm repairs can fall outside it. The rule's text excludes a sale where you contacted the seller for a bona fide immediate personal emergency and gave a separate, dated, signed statement in your own handwriting waiving the right to cancel (16 CFR 429.0). Read any paper a contractor hands you on a wet night before signing it. More on cancellation and deposits is on the contracts and payments page.

State storm-chaser laws, by example

States write their own rules on top of the federal baseline. These five are worth reading because they target the exact problems that follow a storm:

Other states have their own versions. For roofing, the National Roofing Directory's licensing by state page is a place to start, and your state attorney general's consumer office has the rest.

Red flags worth walking away from

• A door-to-door crew with no local connection offering work far below the market price, or a company you can reach only through a phone number or post office box. Both appear on the warning list Illinois requires contractors to hand customers (815 ILCS 513/20).
• A request that you pull the building permit yourself, which the FTC counts among home improvement scam tactics.
• An offer to absorb or rebate your deductible, which Illinois, Colorado and Texas law each prohibit.
• A demand for cash, or for a check payable to a person rather than the company, another item on the Illinois list.
• A free inspection from someone who will not show identification, which the Illinois list also flags.

Where to go next

• Contracts and payments: what the contract should say, deposits, cancellation rights and lien protection.
• Permits and inspections: why the permit matters, who should pull it and what the inspector checks.
• Insurance claims: actual cash value versus replacement cost, deductibles, public adjusters and Florida's assignment-of-benefits reform.

When you are ready to compare roofers, the National Roofing Directory's find-a-roofer pages cover every state, and its storm center and storm damage roof repair guide explain what comes next.

Frequently asked questions

How can I tell a real FEMA inspector from a scammer?

FEMA says its inspectors wear an official government badge, never charge a fee for an inspection, and never ask for your nine-digit registration number. Ask to see identification, and treat any request for money or banking details as a warning sign.

Can a contractor make me give up my three-day right to cancel?

Only in a narrow case. The Cooling-Off Rule excludes emergencies you initiated, and only when you give the seller a separate, dated, signed statement in your own handwriting describing the emergency and waiving the right. A printed waiver slipped into a contract is not that statement.

Is it legal for a contractor to pay my insurance deductible?

Not in Illinois, Colorado or Texas, where statutes bar contractors from offering to pay, waive or rebate a deductible on insurance-funded work. Elsewhere, ask your insurer and your state insurance department before agreeing to any deductible arrangement.

How much should I pay before work starts?

FEMA advises paying no more than half of the repair cost in advance, and the FTC notes that some states cap down payments by law. In Colorado and Illinois, roofers must hold your payment in trust until materials are delivered or most of the work is done.