Survivors of the Eaton and Palisades fires may be eager to begin the rebuilding process, but it’s important to move forward with caution. Homeowners can often fall for scams during this vulnerable time. Taking a few extra steps now can save you significant time, money, and stress later.
HIRING A LICENSED CONTRACTOR
When hiring someone for repairs or rebuilding, make sure they are licensed and in good standing with the California Contractors State License Board. Licensed contractors must list their license number on any contracts, business cards, or advertisements. Homeowners can find listings of licensed professionals and verify a contractor’s license and standing by visiting www.cslb.ca.gov.
Licenses come in various classifications. Survivors looking to rebuild should be working with contractors with the following license types:
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- A – General Engineering Contractor
- B – General Rebuilding Contractor
- C- Specialty Contractor (for specific trades such as electrical, plumbing, etc.)
BEFORE YOU HIRE A CONTRACTOR
Choosing a contractor is a significant decision that requires careful planning. To protect yourself:
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- Get at least 3 bids – Compare prices, services, and timelines.
- Ask for references – Review past projects and talk to previous clients
- Read everything carefully – Contracts must be available in the same language as any presentation/sales pitch.
AVOIDING SCAMS AND PRICE GOUGING
Unfortunately, disasters can attract dishonest individuals looking to take advantage of homeowners. It is important to protect yourself by following these guidelines:
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- Downpayments are limited – A contractor may only request a downpayment of 10% of the total cost, or $1,000, whichever is lower.
- Progress payments – Contractors cannot request progress payments until the work is complete, or the supplies are delivered. Such payments must reflect the actual value of work or supplies provided.
- Price gouging protections – Contractors and vendors cannot raise prices more than 10% in a declared disaster area.
- Don’t pay in cash – Use a check, credit card, or other payment methods that leave a paper trail. Never pay in hard cash.
- Right to cancel – Homeowners living in a declared disaster area have seven (7) business days to cancel their contract without penalty.
For more information, visit www.cslb.ca.gov/disaster.