Severe winter storms have impacted communities across Tennessee, leaving many residents facing urgent recovery challenges.
The Tennessee Attorney General’s Office urges all consumers to stay vigilant and informed while navigating insurance claims, home repairs, vehicle purchases, and financial obligations.
The Tennessee Attorney General’s Office offers the following consumer tools for those impacted by the recent winter weather.
Address financial obligations
Contact the insurance company, mortgage lender, credit card company, and other creditors to let them know about the situation. Most of them have ways to help.
Those unable to live in their homes are advised to check with their utility companies to see if they can shut off services such as electric, gas, and cable in order to reduce expenses.
Filing insurance claims
After a disaster, file a claim as soon as possible. Call the insurance company or agent with the policy number and other relevant information. Policies may require notification within a certain time frame.
Be certain to give the insurance company all the information it needs. Incorrect or incomplete information will only cause a delay in processing your claim.
Ask about additional coverage. For a home is damaged to the extent that it cannot be lived in, ask the insurance company if there is coverage for additional living expenses.
Document. Take photographs or video of any damage.
Make necessary repairs. To prevent further damage to the property, make temporary repairs such as cover broken windows, leaking roofs and damaged walls. Don’t have permanent repairs made until the insurance company has inspected the property and an agreement has been reached on the cost of repairs.
The adjuster. Maintain any damaged personal property for the adjuster to inspect. And be sure to ask the adjuster for an itemized explanation of the claim settlement offer.
Save all receipts. Receipts to save inclue those from the temporary repairs covered by the 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 trusted people and look up reviews and complaints for the business on independent platforms such as the Better Business Bureau’s website. The more platforms checked, 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. These can make the consumer 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 one-third 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. It’s a warning sign if the contractor asks a consumer to pull their own permits. 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 the insurance check.
Refusal to set out terms in writing. Contractors who 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 a disaster has left a consumer 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 buying.
Do due diligence before buying. Research the car’s value.
Take a test drive. And get a vehicle history report at vehiclehistory.gov.
Purchasing a used car? Have an independent mechanic inspect the car.
Get copies of all paperwork. Consumers should never leave without copies of everything that they’ve signed.
Debris removal
Because tree removal is high-risk, never hire someone based on a “handshake” deal after a storm. Always demand:
General liability insurance. Covers damage to the home if a limb falls the wrong way.
Workers’ Comp. Protects the homeowner from being sued if a worker is injured on the property.
Written contract. Should include debris removal (some low-ballers leave the logs behind).
Avoiding scams
While many people seek to help during times of disaster, there is also an increased risk for scams and fraud. Watch out for:
• Upfront fees to help 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 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.
Go to https://tinyurl.com/TN PriceGouging for more about price gouging.
Visit www.tn.gov/consumer To file a complaint with the Attorney General’s Office Division of Consumer Affairs about deceptive business practices such as price gouging.