Hurricane Sandy -- the storm that may transform into "Frankenstorm" -- is stalking the East Coast, raising the specter of extensive flood and wind damage to homes and businesses. If you do wind up with property damage, proceed with caution -- you don't want to get hit a second time by home repair companies that jack up their prices, do a poor job, or walk away before the work is finished.
In past years the Better Business Bureau has warned Americans about fly-by-night bogus contractors, "storm chasers" and door-to-door salespeople peddling dubious deals that may cost homeowners thousands of dollars and create serious headaches. Its advice is just as important now as it was when Hurricane Irene hit last year. Which is why we've gone back to see what DailyFinance reporter Sheryl Nance-Nash had to say on the subject in the wake of Irene.
Any time you suffer storm damage, there tends to be a strong sense of urgency to deal with it -- but it's a good idea to take your time. In the wake of a major storm there will be a ton of people just like you, looking for help. Trouble is, some of the best contractors will probably already be booked with jobs that began long before the storm hit. And others are going to be snapped up quickly by your fellow storm survivors, so good help might be harder to find than you would anticipate.
Run from any contractor who uses high pressure sales tactics or requires full payment upfront, as well as any one who requires you to get the necessary permits.
How will you know a storm chaser? They appear uninvited at your door step, often in unmarked trucks, according to the BBB. Don't be surprised if they ask for big bucks up front and promise you the moon. Say no thank you politely, and close the door.
How to Avoid Being Scammed
According to the Federal Trade Commission, a deposit of one-third of the total quoted price is the norm. Pay by check or credit card, and pay the final amount only after the work is done and you're happy with it. Do not, repeat, do not, pay cash. "There's nothing wrong with giving a company a deposit on the day they start work, but do not pay $3,000 to $5,000 up front to secure a service for some date in the future," says Jeff Dundan, founder of AdvantaClean, a water removal company.
"Does the company have worker's comp? What does its website look like?" asks Dundan. "If you can't find and validate the company online now, you likely won't be able to find them later. You hear the horror stories all the time," he warns.
Is the contractor licensed, insured and bonded? If not, don't hire them. What kind of recent references can the contractor provide? Do ask whether the contractor will be subcontracting the job or will his or her crew be running the show.
Find out what kind of organizations or associations the company belongs to. For example, the Institute of Inspection, Cleaning and Restoration Certification is a standards-setting body for the flooring inspection, floor covering and specialized fabric cleaning and disaster restoration industries. Its members are required to have proper licensing and liability insurance and to adhere to a code of ethics, and to employ trained technicians. If you get approached by someone offering water restoration services, you can ask to see the technician's official IICRC wallet card, which confirms training and certification. You can also call the IICRC hotline at (800) 835-4624 to confirm the certification of any company that has contacted you.
As when dealing with other professionals, you'll want three or four companies to choose from. Get estimates and recent references before making a decision.
Beware of Lowest Bidders and Fine Print
Cheapest may not always be best. It's bad enough to have to make an unexpected repair; shoddy work will only be more expensive down the road. If you have to borrow money in order to pay for the repairs, think twice about using your home as collateral. If you can't pay it back, you risk losing your home. The FTC advises asking an attorney to review your loan documents.
The FTC and the Federal Emergency Management Agency advise checking out anyone you plan to do business with through the Home Builders Association and Better Business Bureau for any complaints.
And do get a copy of the final, signed contract before the job begins -- and make sure you read the fine print.
Frankenstorm: How to Avoid Getting Ripped Off on Home Repairs After Hurricane Sandy
The devastation wrought by Hurricane Sandy is a good reminder that the strength of a storm is less important than where it makes landfall. Despite its enormous size, it was classified as only a Category 2 storm at its peak, and by the time it made landfall in the Northeast, it had been reclassified as a "post-tropical storm" (a designation that will force insurers to pay more in claims than they would have for a storm classified as a hurricane).
Hurricane or not, though, Sandy's landfall near New York City and other major population centers in the region immediately vaulted it onto the list of the most expensive storms in the nation's history. While the first wave of cleanup and recovery continues throughout the region, there's little doubt that the massive flooding and wind damage associated with Sandy will ultimately cost tens of billions of dollars, to say nothing of the human toll.
Click through our gallery to find out how Sandy stacks up to other devastating Atlantic storms.
* - Costs adjusted to 2010 dollars on basis of U.S. Dept. of Commerce Implicit Price Deflator for Construction. The storms from 2011 and later are not adjusted. The National Climatic Data Center (NCDC) rates Hurricane Katrina's damage at $133.8 billion 2007 dollars.
Landfall Category: 1
U.S. Damage: 11.7 Billion
Date of storm: June 18-23, 1972
U.S. areas affected: Florida(Panhandle), Georgia, Carolinas, Northeastern U.S.
This June 23, 1972, photo shows people in Harrisburg, Pa., being rescued by boat from their homes after Hurricane Agnes caused the Susquehanna River to overflow its banks, leading to heavy flooding.
U.S. areas affected: Connecticut, Delaware, Massachusetts, Maine, Maryland, North Carolina, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, Virginia, Vermont, Washington DC
Hurricane Irene crippled 10 states during its slow climb up the Eastern Seaboard, causing massive flooding and power outages. The brutal storm made landfall in North Carolina and traveled to Maine.
Billy Stinson (C), his wife Sandra Stinson and daughter Erin Stinson (R) comfort each other as they sit on the steps where their cottage once stood before it was destroyed by Hurricane Irene on Aug. 28, 2011 in Nags Head, N.C.
The cottage, built in 1903 was one of the first vacation cottages built on Roanoke Sound in Nags Head. Stinson had owned the home, which is listed in the National Register of Historic Places, since 1963. "We were pretending, just for a moment, that the cottage was still behind us and we were just sitting there watching the sunset," said Erin afterward.
After striking Mexico from the Caribbean Sea, Wilma turned northeast, strengthened over the Gulf or Mexico, and made landfall near Cape Romano, Fla., on Oct. 24 as a Category 3 hurricane. The eye crossed the Florida Peninsula in less than five hours, and it moved into the Atlantic just north of Palm Beach as a still forceful Category 2 hurricane.
Pictured: A public phone is surrounded by flood waters near a block of hotels as Hurricane Wilma lashes Cancun, Mexico, on Oct. 21, 2005.
U.S. Damage:Early estimates indicate damage and economic losses as high as $50 billion
Date of Storm: October 29-31, 2012
U.S. Areas Affected: Connecticut, D.C., Delaware, Florida, Maine, Maryland, Massachusetts, New Hampshire, New York, New Jersey, North Carolina, Ohio, Pennsylvania, Rhode Island, West Virginia, Vermont, and Virginia.
Pictured: NEW YORK, NY - OCTOBER 29: Rising water, caused by Hurricane Sandy, rushes into a subterranian parking garage on October 29, 2012, in the Financial District of New York, United States. Hurricane Sandy, which threatens 50 million people in the eastern third of the U.S., is expected to bring days of rain, high winds and possibly heavy snow. New York Governor Andrew Cuomo announced the closure of all New York City will bus, subway and commuter rail service as of Sunday evening.
Landfall Category: 3
U.S. Damage: $105.8 Billion
Date of storm: Aug. 25-30, 2005
U.S. areas affected: Alabama, Florida, Georgia, Louisiana, Mississippi, Tennessee
Katrina unleashed torrential rains and a potent storm surge that led to disastrous flooding that left about 1,600 people dead, destroyed thousands of homes and marred the presidency of George W. Bush, whose administration was severely criticized for its handling of the crisis.
Pictured: President Bush (center) tours the devastation in New Orleans with Mayor Ray Nagin (right), Louisiana Gov. Kathleen Blanco and Vice Adm. Thad Allen.