Valley sees rise in fraud

Staff report

youngstown

Recent reports indicate that the Mahoning Valley is seeing a rise in home-repair scams, according to the Ohio Department of Insurance and the Youngstown Better Business Bureau.

Homeowners in Youngstown, Boardman and Austintown recently have filed claims stating that they were approached by contractors who claimed that their homes may have suffered damage in a December 2009 hail storm, said Jarrett Dunbar, a spokesman with the Ohio Department of Insurance.

In the wake of storms, “fly-by-night” contractors drift state-to-state and prey on homeowners, Dunbar said. If the homeowner allows the contractor to inspect the house, some unscrupulous contractors might then use a hammer or other tool to cause damage that appears like it was caused by a storm, he said.

Since 2007, the Youngstown Better Business Bureau has seen a rise in out-of-state contractors that come to the area after a storm, said spokeswoman Melissa Ames.

The primary concern is that, in some cases, the contractors try to act as an unlicensed insurance adjuster on behalf of the homeowner or defraud the homeowner out of their insurance money, Ames said.

To avoid contractor fraud, the Ohio Department of Insurance suggests that homeowners obtain a list of reputable contractors from their insurance carrier or the Better Business Bureau and request references. The department also advises homeowners to watch contractors conduct an inspection.

Those who think they may be a victim of contractor fraud are encouraged to contact the Department’s Fraud and Enforcement division at 800-686-1527.