The Pennsylvania Insurance Department is encouraging state residents to be cautious this summer of deceptive business practices, such as contractor fraud.

Contractor fraud can occur in many forms and typically takes place in communities that were recently affected by severe weather. PID wants to ensure that Pennsylvanians know what to look for and how to avoid being scammed.

“Unfortunately, one of the most enjoyable times of the year is also one of the worst times for severe weather and that’s when contractor fraud is most prevalent,” said Pennsylvania Insurance Commissioner Michael Humphreys. “Pennsylvanians have every right to do their homework when it comes to hiring a contractor and should know that if an offer or high-pressure tactic doesn’t feel quite right, it’s probably best to move on and choose another contractor.”

Fraudulent contractors prey on regions that have been affected by severe weather events.

Following a disaster, contractors will visit an affected area and attempt to persuade homeowners to let them manage their home repairs by claiming to maximize the homeowner’s payout or by stressing the importance of immediate repairs. If the homeowner agrees, the contractor may perform substandard work with cheap products or leave town with the insurance payout.

To avoid this scenario, people should first ensure they’re working with a reputable contractor who is appropriately registered and insured. Home-improvement contractors that earn more than $5,000 in business per year in Pennsylvania must register with the Pennsylvania Office of the Attorney General’s Bureau of Consumer Protection.

Homeowners should ask contractors for their Home Improvement Contractor number and verify registration by calling the attorney general’s home improvement registration toll-free line at 1-888-520-6680.

If approached by one of these people, Pennsylvanians should also ask:

• If the contractor can provide several referrals.

• Where the business is located.

• How long the contractor has been in business.

• What the contractor’s experience level is with projects centered around storm damage.

Most importantly, people should never pay a contractor in full or sign paperwork that indicates the contractor finished the job until the work is actually completed.

PID also urges homeowners who have been affected by severe weather to be cautious of individuals presenting themselves as public adjusters. A public adjuster is a person or business that can be hired by a consumer to negotiate an insurance claim with the insurance company. Public adjusters are not employees of insurance companies.

Pennsylvanians can verify a licensed public adjuster by visiting PID’s website.

If you suspect anyone or any entity is operating as a public adjuster without a license, you may report it by calling the Insurance Department’s Consumer Services team at 877-881-6388.