Disaster Damage Is An Invitation To Fraud
Release Date: September 21, 2004
Release Number: 1539-132
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ORLANDO, Fla. -- Floridians who are rebuilding their hurricane-damaged homes and businesses need to be alert for contractors and repair services that engage in fraud and prey on vulnerable disaster victims.
The first rule of rebuilding is never to pay in cash or more than a reasonable down payment before the work is done. The second rule is to check the references of anyone you hire and compare prices in your area. A reliable repair service will have references and insurance to protect its workers, and will offer you a contract specifying that it pays for all materials used. These are things you should insist on.
Many illegitimate contractors drive long distances to reach a disaster area to seek customers who are overstressed and eager to have their homes restored. A number of scams are used, including offers to increase damage estimates and posing as representatives of the Small Business Administration (SBA) or the Federal Emergency Management Agency (FEMA).
All federal agency personnel carry photo identification, which you should ask to see. No federal agent will ask you to pay a fee for any service. If you have internet access you can check a contractor’s licensing status at www.myfloridalicense.com.
Housing has been the greatest single need of Floridians affected by Hurricanes Charley, Frances and Ivan. Since Charley made landfall in August, 202,916 damaged homes have been inspected and FEMA has approved $148.6 million in direct assistance to applicants for home repair.
To provide temporary repairs to homes with damaged roofs FEMA has provided 119,454 tarps for distribution to homeowners and installed plastic sheeting on 19,461 homes with extensive roof damage.
In addition, $55 million has been approved for rental assistance to 43,998 applicants and 660 families have been assigned travel homes for temporary housing, with 451 more units now ready for occupancy.
Assistance to the 493,259 storm victims who have registered for financial aid now totals $269 million. In addition, the U.S. Small Business Administration (SBA) has approved $73.2 million in low-interest loans for home and business repair.
The assistance total includes $120.2 million approved for individuals and households who needed to replace uninsured essential personal items that were damaged or lost.
FEMA’s disaster medical assistance teams have treated 6,177 persons in the field. More than 64,000 persons have visited 29 disaster recovery centers for information on assistance programs and to get help with their applications.
Power has been restored throughout the Charley and Frances damage areas and is now 63 percent restored in the area hit by Ivan, with 163,000 customers still out.
Residents who lost their source of income because of Hurricane Charley and have not requested unemployment assistance have been given additional time in which to file a claim. The original deadline of Sept. 15 has been extended 30 days to October 15 by the U.S. Department of Labor at the state’s request.
As a result of the intense hurricane activity, FEMA's toll-free teleregistration line received twice as many calls this past month than any previous month in the history of the agency. Additional call centers and registrars have been added, but the volume remains extremely high. Callers are advised that if they get a busy signal, to please be patient and try the call again later.
The State Emergency Response Team is a collaboration of Florida’s emergency management agencies led by the state coordinating officer. SERT’S mission is to ensure that Florida is prepared to respond to emergencies, recover from them, and mitigate their impact. Visit http://www.floridadisaster.org for the latest information on the hurricane relief effort.
On March 1, 2003, FEMA became part of the U.S. Department of Homeland Security. FEMA's continuing mission within the new department is to lead the effort to prepare the nation for all hazards and effectively manage federal response and recovery efforts following any national incident. FEMA also initiates proactive mitigation activities, trains first responders, and manages the National Flood Insurance Program and the U.S. Fire Administration.
Last Modified: Tuesday, 21-Sep-2004 13:34:15