As home improvement demand remains strong for kitchen and bath remodels, as well as for outdoor renovations, reports of contractor scams are rising. These schemes are potentially costing homeowners thousands of dollars in losses.
About one in 10 Americans have been a victim of a contractor scam, losing an average of $2,426, according to a new study of about 1,000 Americans from JW Surety Bonds. The study uncovered the following most common contractor scams:
Baby boomers were the most likely to fall victim to contractor scams (15%), followed by millennials (13%), the survey shows.
Red Flags to Watch
The study identified the following five items that alerted consumers to a possible scam:
Maddie Weirman, a spokesperson for JW Surety Bonds, a nationwide provider, offers some of the following tips to avoid contractor scams:
- Ensure the contractor is licensed and insured. “Don’t be afraid to ask the contractor for proof of insurance,” Weirman says. By hiring…