Overview of How to avoid scammers after a natural disaster (NPR — The Indicator / Planet Money)
This episode examines how contractor scams proliferate after natural disasters, why survivors are especially vulnerable, and practical steps homeowners can take to avoid being victimized. Reporter Navina Sadasivam (Grist) walks through a Southern California fire case in which a franchise contractor performed large-scale work without insurer approval, filed liens and lawsuits, and left homeowners scrambling — illustrating common scam tactics and legal dangers. The show also features guidance from Niamh B. Tillman of the National Insurance Crime Bureau on prevention and recovery.
Key takeaways
- Disaster recovery creates conditions (desperation, shortage of reputable contractors, breakdown of usual safeguards) that scammers exploit.
- A significant share of post-disaster spending is lost to fraud; one estimate suggests roughly 10% annually in recent years.
- Door-to-door contractors can perform unauthorized work, send inflated bills, file mechanics liens, and even sue — using legal pressure to extract payment.
- Homeowners can reduce risk by verifying contractors, contacting insurers directly, using the contract rescission (cooling-off) window, and coordinating with neighbors.
Case study: Craig Crosby (Camarillo, CA)
- On Nov 6, 2024, wildfires destroyed Craig Crosby’s home and avocado orchard. Damage estimates exceeded $500,000.
- A local franchise (identified on-air as One Silver Serve, a franchise of SERVPRO) arrived after the fire. Crosby asked them to only inspect and document damage and to have all payments go through his insurer.
- Despite that, crews performed extensive cleanup and demolition over 10 days. Crosby later learned his insurer had not authorized the work and had the franchise on an internal blacklist.
- The contractor billed Crosby for more than $62,000, filed a mechanics lien, and sued when he refused to pay. After media coverage, the lien was later rescinded and the suit dropped; Crosby still pursues counterclaims (fraud, breach of contract, property damage, elder abuse). Some neighbors face outstanding liens and suits.
How these scams typically work
- Rapid-response crews show up after disasters, present as “helpful” and insured/authorized, and pressure homeowners to sign or allow work right away.
- Scammers may:
- Claim insurer approval that doesn’t exist.
- Use official-looking emails/websites that mimic insurers.
- Start costly cleanup or demolition immediately, then present inflated bills.
- File mechanics liens or sue to force payment when victims are overwhelmed.
- Legitimate mechanics liens exist to protect unpaid contractors, but bad actors weaponize liens to exert pressure.
Practical protections and steps to take
- Do not sign anything from door-to-door contractors without time to verify. Many states allow a short rescission (cooling-off) period for door-to-door contracts — typically 3–7 days.
- Before work begins:
- Get multiple bids.
- Insist on a detailed, written scope of work and cost estimate.
- Require written proof that your insurer has approved the contractor and the work.
- Verify contractor licenses, insurance, and complaints with your state contractor licensing board.
- Check that contractor contact info (phone, website, email) is legitimate and not a lookalike of your insurer.
- Communicate directly with your insurance agent/company to confirm approvals; don’t rely on contractors’ claims.
- Avoid large upfront cash payments or signing away rights.
- Document everything: photos of damage, written communications, copies of contracts, and receipts.
- Organize with neighbors ahead of time: create a list of trusted local contractors before disaster strikes.
- If a contractor files a mechanics lien:
- Contact your insurer and the contractor immediately.
- Consult an attorney or local legal aid to understand defenses and options.
- Contact your state attorney general or consumer protection office for help if fraud is suspected.
Legal concepts explained
- Mechanics lien: a legal claim on property by a contractor or supplier who says they weren’t paid. It can complicate property sales and finances; while legitimate in many cases, it can be misused after disasters.
- Rescission (cooling-off) window: a limited period (varies by state) during which homeowners can cancel certain contracts signed in door-to-door situations without penalty.
Broader impacts
- Fraud increases recovery costs, drives up insurance premiums, and can cause insurers to withdraw from high-risk areas, making coverage less accessible and affordable.
- Scams also create long-term financial and legal headaches for already-traumatized survivors.
Resources and next steps
- National Insurance Crime Bureau (NICB) — tracks contractor and insurance fraud.
- State contractor licensing board — verify licenses and complaints.
- State insurance commissioner — questions about insurer-approved contractors or reporting insurer-related fraud.
- State attorney general / consumer protection offices — report scams and get assistance.
- Local legal aid or consumer law attorneys — for lien disputes and defense against collection suits.
Notable quotes
- Niamh B. Tillman (NICB): “For the majority of us, we think the best of people… We underestimate, unfortunately, that others do not necessarily have our best interests at heart.”
- Practical maxim repeated: “If it sounds too good to be true, it probably is.”
Produced by NPR’s The Indicator; reporting by Navina Sadasivam (Grist).