To whom do you report a contractor that has taken your insurance money for your house fire ?

Question

Please help I do not have money for legal advice. He took almost $25,000. and only put the roof on . Who do I report him to?It has been almost a year, does the time limit run out? I am worried sick and without a home. What can I do? He refuses to answer my telephone calls. I know where he lives. About 32 miles from me. The insurance company keeps giving me the run around saying there is nothing they can do? Is this true? The contractor is licensed for $80,000. I had a cerebral stroke three weeks ago and I have a problem reading now but any help is deeply appreciated. Thanking all in advance.

Sonny, He seemed honest, The Ins gave me 27,+ of which the first I initially pd con 10,000 then I went back almost 2 weeks later and and he was in process of roofing, and he said to save time and speed up work he need 10 more so within less 2 wk 20,000. then he insists he did 24-25, and was going to sue ME. I was stupid not to be there everyday but I live to far away to be there and he seemed honest and talked a good game and yes, I am guilty of never hiring a contractor before. My parents are old and I did not want to bother them and also if you've read this far the house was rented out and was for me to have some extra income and now situation has changed.

Answer 1

First of all this is not an issue for your insurance company but rather for the entity in your state that licenses contractors.
Most states have a contractor recovery fund to handle the exact situation you are in.
You should call your state's capitol and find out which agency administers your state's fund.
Then, report the contractor and make a claim on the fund.
You may not have checked out the contractor and his record when you hired him, but you clearly should have.
He should lose his license and with your help, he may just suffer that fate.
Don't let him rip anybody else off.
But your insurer is right. If they've given you the check and you gave it to him and he's ripped you off, then there isn't much else they can do.....they already paid the claim.

Answer 2

Did you check his references, license, insurance and bond? One way to prevent fraud is that if a contractor wants money up front for materials, then go with him to home depot and use your own credit card.

The truth is that contractors that are in good financial shape don't often require money up front and when they do it is usually minimal.

Sometimes, they'll take some money up front, then take more as the work progresses. This is okay provided it appears they've done what they should have at this point.

But anytime you pay someone before the work is done you run a really good risk of getting screwed over.

Start calling lawyers. You may find one that will help you with no up front cash. Sometimes all it takes is a letter from a lawyer and the guy will cough up your money, but I'm guessing this guy hasn't got it.

Call your local district attorney. That costs nothing and they can prosecute him for fraud which won't get your money back, but makes it easier for you to get a civil judgement against the guy.

You should have gotten multiple estimates so you should be able to judge fairly whether or not he's really done enough to justify what he took.

The suggestion to contact your local TV station and hunt out the consumer fraud reporter is also a good one.

Best of luck.

Answer 3

There is something wrong in what you are telling us. Did the insurance company just give you money and say fix the house ? I never have heard of any company doing that. The insurance companies pay as repairs are completed and bills submitted.If you paid him in advance of work being performed, I am afraid that you have learned a very expensive lesson.
Where did the 25,000 come from ? What was the total that the insurance company was going to pay for the fire damages ? If , somehow you can document fraud, then the police can arrest the man and at least stop him from cheating others, like yourself.

Answer 4

You should get his license number using whatever means possible and file a complaint with the issuer of the license for the state. He will be put on notice to resolve and could end up getting it revoked based on his actions.

Also, if there is a mortgage on the property contact your lender. They have Loss Draft Departments that typically handle the insurance proceeds and working with the payments to the contractors. They may be able to point you in the right direction. I am shocked that the lender didn't keep the funds to monitor th repaires in the first place. This would have prevented the problem.

Answer 5

Contact the county where he resides to see if he has a license to operate a contracting business, contact the state licensing and permit department about his license. Contact the Better Business Bureau to see if they have any records on him. Usually insurance will only pay if damage to property or bodily injury occurs that he would be legally liable to pay for. A performance bond if he had one, would compensate you for the money he has of yours and the unfinished work. The bonding company would hire someone to complete your work, and then they would go after the contractor for restitution.

Answer 6

Try the attorney generals office It should be listed in the phone directory or online.

Also try local TV stations Most of them have at least one consumer reporter.

Try sending a registered letter. Telling him you are willing to pay for the roof but want the rest of the money back immediately or their will be further leagal action

Go to the bar association of your state find out if there are any lawyers willing to take your case on a contingency basis. In other words they take 1/3 of what you get.

Good luck

Answer 7

Contact the district attorney's office in the city where you live. There is no cost for this. Next, contact the Better Business Bureau, and file a complaint against this contractor, so others will not be scammed. Hope you recovery your money.

Answer 8

Try the Better Business Bureau http://www.bbb.org
Find out where he is licensed through and report him, also.
You can also file a civil complaint through your local court system. You do not need an attorney to do so.
The insurance company cannot do anything unless they were responsible for hiring or paying him directly.
Best of luck to you...sounds like a terrible situation to be in.

Answer 9

Contractors state license board should be notified. You should always check on the state license to see if a contractor is licensed before hiring. I suggest asking for a copy of current license, bond, and proof of insurance before you sign a contract with them. Also you should be named as an additional insured on the certificate of insurance they provide.

Answer 10

You can contact the police, and see if they'll help at all.

But i think you're really going to need a lawyer. Do some searching around your town, and there's bound to be some great legal clinics for people with low income that could give you a hand.