After a hurricane, Florida homeowners often find themselves inundated with contractors offering their services. From mold assessors and remediators to mitigation and rebuild contractors, a range of professionals may contact you. While it’s essential to secure these services quickly, it’s even more critical to understand the contracts being offered to you and verify the credentials of anyone who steps foot on your property. If someone knocks on your door offering services, it’s often a red flag.
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Be Cautious of Door-Knocking Contractors
If contractors or public adjusters are knocking on your door after a storm, it’s a sign to be wary. Legitimate, licensed contractors and public adjusters are usually too busy with existing work to solicit new business door-to-door. In our experience, these door-knocking contractors often represent the “bottom of the barrel” in terms of service quality and may not even be properly licensed.
Always ensure that anyone offering you services is fully licensed by checking their credentials through the Florida Department of Business and Professional Regulation (DBPR) or the Florida Department of Financial Services (DFS) License Search. A public adjuster, for instance, is required to carry their license while working in the field, so don’t hesitate to ask to see it.
Common Contractors and Services After a Hurricane
Mold Assessors & Remediators
Mold can develop quickly after a storm, especially in areas with water intrusion. Mold assessors will test for mold, while remediators will clean it up. Before signing any contract with these professionals, request a written price estimate in advance, outlining exactly what services will be provided and how much they will cost.
Water Mitigation & Restoration Contractors
These contractors specialize in removing water from your property and drying out affected areas to prevent further damage. Again, always ask for a written quote before work begins. Some mitigation contractors may present a “Direction to Pay” contract, which allows them to be paid directly from your insurance. Ensure that all costs are outlined clearly and that the contractor is licensed by the state.
Roofers and Builders
Post-hurricane, you’ll likely need repair services for your roof or home. Be wary of roofers knocking on your door, offering to “inspect” your roof for free. Many of these door-knockers are not licensed professionals. A legitimate roofer or builder will have the appropriate Florida license and will provide a written estimate for the work to be done before you sign any contract.
Public Adjusters
A public adjuster helps you navigate your insurance claim and ensures you receive a fair settlement. They are required to carry their license in the field, so always ask to see it. You can also verify their license on the DFS License Search. If a public adjuster is knocking on your door, be cautious—it’s typically a sign that they may not be the most reputable or experienced professional. Good public adjusters get their business from referrals and existing clients, not door-knocking.
Key Types of Contracts to Watch Out For
Direction to Pay Contract
This type of contract allows contractors to be paid directly from your insurance claim. While it might seem convenient, always ensure you get a written price estimate first. Review all fees and services included in the contract to avoid any surprises later.
Work Authorization
A work authorization contract gives the contractor permission to begin work. Ensure that the scope of work, the price, and the timeline are clearly outlined in the contract. You should never allow any contractor to begin work without first getting a written price estimate and verifying their credentials.
Letter of Protection (LOP) Language
Some contracts may include “Letter of Protection” clauses, which make your payment contingent upon receiving funds from your insurance company or legal settlement. Be aware that if your insurance payout doesn’t cover the full cost, you could be responsible for the difference.
The Elimination of Assignment of Benefits (AOB) Contracts
Prior to Senate Bill 2A (SB2A), passed in December 2022, many contractors used Assignment of Benefits (AOB) contracts to directly handle insurance claims on behalf of homeowners. This allowed contractors to step into the shoes of the homeowner to secure payment from the insurance company. However, SB2A effectively eliminated AOB contracts for property insurance claims in Florida. Now, homeowners are directly responsible for managing contractor payments once insurance funds are received.
This shift means it’s more important than ever to manage your own insurance claims and ensure you are working with licensed and qualified contractors. Without AOB contracts, disputes over payments and the scope of work are now between the homeowner and the contractor—not the insurance company.
Protecting Yourself: What to Do Before Signing Any Contract
Verify Contractor Licensing
Always verify that the contractor is licensed through the DBPR for general contractors or mold assessors/remediators. Public adjusters can be verified through the DFS License Search. These resources will tell you whether the contractor or public adjuster is currently licensed and in good standing.
Get a Written Price Estimate
Before hiring any contractor, demand a written price estimate for the work. This ensures you understand the full scope of the job and the associated costs. Do not let contractors begin work without this in writing.
Understand Your Financial Responsibility
Since the passing of SB2A, you are now responsible for paying contractors directly from your insurance proceeds. Ensure that the contract clearly outlines your payment obligations and that you know exactly what your insurance will cover.
Beware of Door-Knocking Contractors
Legitimate contractors and public adjusters will rarely have time to knock on doors after a storm—they will be busy working with existing clients. If someone knocks on your door, be cautious, as this is often a sign of less reputable contractors. Verify their credentials and be sure to get everything in writing before agreeing to any work.
Post-hurricane contractors often provide essential services, but it’s crucial to understand the contracts you’re signing and verify the credentials of anyone working on your property. With SB2A removing AOB contracts, Florida homeowners now bear more responsibility for managing contractor payments. Always get a written price estimate, verify licenses, and be cautious of anyone knocking on your door offering services.
Disclaimer
We are not attorneys, and this blog is for informational purposes only. Please verify all information and consult a licensed attorney or other professionals for specific legal advice.