Disaster scams: How TN Helene victims can stay protected from fraud

NASHVILLE, Tenn. (WKRN) – As the road to recovery continues more than a week after Hurricane Helene, the Tennessee Department of Commerce and Insurance (TDCI) is reminding storm victims that when disaster strikes, so do scammers.

“While most people want to help and have good intentions, unfortunately, scam artists will use the opportunity of the Helene disaster to better themselves and line their pockets,” said Kevin Walters, director of communications for the TDCI.

For East Tennesseans who experienced catastrophic home damage, the TDCI said the first call they should make is to their insurance agent to file a claim. The insurance company will coordinate with you to send an adjuster to inspect the damage. The agency warns that some fraudsters may pose as your insurance company to take advantage of the situation.

“They’re using your being in a weakened state and your need to help themselves to your money,” Walters said.

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Those who feel they have been unfairly denied a claim by an insurance company should file a complaint with TDCI .

According to the TDCI, damages caused by wind, wind-driven rain, trees or other falling objects are typically all covered under most standard homeowners’ insurance policies. Flood damage to the interior of your home, however, is usually not covered. Flooding is protected by flood insurance, which is a separate policy.

When hiring a contractor for repairs and rebuilding, the TDCI said it’s important to know the following information:

• Before selecting a professional, ensure they are properly licensed for the project by visiting verify.tn.gov .
• A contractor’s license is required when the total cost of a project is more than $25,000.
• For work less than $25,000, check with your local government’s building codes office to confirm whether a contractor needs a state license or local license to perform home improvement, electrical, plumbing or HVAC work, as well as their permit requirements for inspections.
• Get several bids and check references before committing to a contractor.
• Be wary of contractors selling repairs door-to-door, especially when they ask to receive payment upfront or offer deep discounts.
• If you are dealing with a company or person who promises to remove debris from your property, ask them to list the services they will provide in writing. Ensure that your contract provides you with an inspection and approval of the work before making the final payment.
• State home improvement law prohibits contractors from asking for a down payment of more than 1/3 of the total contract. Make sure you have the terms of payment in writing.

Walters said if it sounds too good to be true, that’s probably the case.

“If you are approached by someone going doorstep to doorstep, knocking on doors and offering a great deal for cleaning up debris or for rebuilding your house and they say ‘pay me now’ and ‘you can get a great deal now’, and ‘I can do the work soon’, nine times out of 10, that person isn’t going to deliver what they’re promising,” Walters said. “That person is there to get paid and leave you holding the bag.”

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To file a complaint about a contractor, visit the TDCI’s website .

TDCI Commissioner Carter Lawrence has requested that all insurance carriers give those affected by Helene a 60-day grace period for premium payments.

Disaster survivors in certain areas of Tennessee can start their recovery process by applying for federal aid through FEMA.

To date, the Federal Emergency Management Agency (FEMA) said it has approved more than $632,000 in disaster assistance for over 33 households impacted by Helene.

There are three ways to apply for FEMA assistance:

• Call the FEMA Helpline at 1-800-621-3362
• Visit FEMA’s website
• Download the FEMA App

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