How can I avoid contractor scams?

Short answer

Refuse door-to-door pressure, verify the license and insurance yourself on official sites, never pay in cash or in full upfront, insist on a written contract with a milestone payment schedule, and require lien releases. Scams almost always require you to skip one of those steps.

Full explanation

Federal and state consumer agencies describe the same pattern year after year. The warning signs:

- Unsolicited door-to-door offers, especially after a storm, and "we have leftover material from a nearby job".
- Pressure to decide today, or a discount that expires immediately.
- A demand for cash, a wire, a payment app transfer, or the full price upfront.
- No written contract, or a contract with blanks to be filled in later.
- No verifiable license, a licence number you cannot find on the official site, or a name mismatch.
- No physical business address, only a mobile number.
- An offer to waive or "absorb" your insurance deductible — that is insurance fraud in many states, and it exposes you.
- Insistence on pulling no permit, or asking you to pull the permit yourself for work they will perform.

How to protect yourself:
1. Verify the license on the issuing authority''s official website and confirm the name matches the contract.
2. Get the certificate of insurance directly from the insurer.
3. Get three written itemized bids for the same scope.
4. Sign a written contract with a milestone payment schedule and a real final payment.
5. Pay by cheque or card so there is a record; never in cash.
6. Get lien waivers with each payment.
7. Keep every document, photo, text and email in one place.

If you are already caught in one: stop payments where you can, send a written demand by certified mail, and file a complaint with your state licensing authority, your state attorney general and the FTC.

State-specific rules

Florida-specific steps:
- Verify the contractor on the DBPR Licensing Portal, and confirm certified versus registered status for your county.
- Florida consumer agencies warn specifically about post-disaster "fly-by-night" contractors who take deposits and disappear. FDACS publishes guidance on service-contractor scams and home improvement contractors.
- If a contractor took more than a 10 percent initial payment and has not applied for permits within 30 days or started work within 90 days after permits were issued, §489.126 sets out the written certified-mail demand process for permits, work or a refund.
- Complaints about licensed and unlicensed contracting go to DBPR; consumer complaints also go to the Florida Attorney General and FDACS.

Common mistake to avoid

The deductible "waiver" offer is the most under-reported scam. A contractor who offers to cover your insurance deductible is usually inflating the claim — and in many states that makes both of you a party to fraud.

Sources & References

How To Avoid a Home Improvement Scam — Federal Trade Commission official source
How To Avoid Scams After Weather Emergencies and Natural Disasters — Federal Trade Commission official source
Service Contractor Scams — Florida Department of Agriculture and Consumer Services official source
How to Protect Yourself: Contractors — Office of the Attorney General, State of Florida official source
§489.126, Florida Statutes — Moneys received by contractors — Florida Legislature — Online Sunshine official source

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