DFS offering free repair contract review
In the wake of disaster, we usually see the best and worst humanity has to offer. In the case of Hurricanes Helene and Milton, sadly we’ve started to see the latter, with opportunistic individuals attempting to take advantage of residents who sometimes have already lost everything. Just last week, the Florida Division of Emergency Management (FDEM) made an official post warning residents of scam messages from someone pretending to be an FDEM representative to help those who need to file for assistance. It’s the latest example of post-hurricane fraud.
From Florida Division of Emergency Management, posted November 5, 2024
Unlicensed contractors, workers, and even looters have been arrested in the weeks following the two hurricanes. The Florida Department of Financial Services (DFS) has had 130 fraud detectives on the ground as part of the Disaster Fraud Action Strike Teams (DFAST) to help combat the “fraudsters and unlicensed activity,” protecting consumers and homeowners in such uncertain times. One such individual, Wilmer Maldonado, owner of WM Roofing, was arrested in Polk County for unlicensed contracting and failure to secure workers’ compensation insurance. Maldonado advertised his services via Facebook, accepting a $5,000 deposit from the homeowner and subsequently hired two workers for $200 each in a Home Depot parking lot to help with the job and arranged to use the license of a local contractor to pull a permit. If convicted, he could face up to 10 years in prison.
On the coast in Pinellas County, an even wilder situation played out, with more than 100 people being arrested in October for looting homes and working as unlicensed contractors. Deputies first arrested 45 people on Madeira Beach, near St. Petersburg, for a litany of offenses, including burglary, armed robbery, and grand theft after they ransacked nearby abandoned homes. In the same area, a three-day undercover sting operation led to the arrests of over 60 people involved with unlicensed contract work, offering roofing, plumbing and electrical services to unsuspecting homeowners in need of assistance. Pinellas County Sheriff Bob Gualtieri issued a statement, saying “We are now focused on protecting our residents and our businesses who are desperate to rebuild and get on with their lives.”
Then, last week, Gualtieri and Clearwater Police ran another sting operation leading to 38 arrests on 45 charges, which will all be felonies due to the ongoing state of emergency declaration. The arrested individuals offered many of the same services doing structural work on damaged homes – including air conditioning, roofing, and electrical – all without proper training or certification. More arrests are expected.
DFS has responded by launching the Check My Contract portal. It allows property owners to submit repair contracts to DFS for independent review to gather any potential evidence of insurance fraud against Florida policyholders. DFS will check contracts for:
- Compliance with Emergency-Specific Protections: Review roofing and public adjusting contracts to ensure they meet Florida’s cancellation criteria outlined in 626.854, 626.8796, Florida Statutes and Rule 69B-220.051, Florida Administrative Code. The consumer will receive the appropriate cancellation form if a contract does not meet these criteria.
- Consumer Protection in Post-Storm Recovery: Examine storm recovery contracts to determine if they involve an unlawful Assignment of Benefits (AOB), rendering them void under Florida Statute 627.7152. If a contract is identified as an unlawful AOB, the consumer will receive a notice informing them that it is void, invalid, and unenforceable.
DFS reminds Florida’s property insurance policyholders and other members of the public when dealing with post-hurricane offers of help, “If it sounds too good to be true, it always is.”
LMA Newsletter of 11-12-24
