Tips to avoid fraud

Flood victims need to watch out for another looming problem -- fraud. The Better Business Bureau of Chicago and the Illinois attorney general's office both issued warnings Monday to avoid "after-disaster" scams involving home repairs and clean-up in flood areas.

• Don't be pressured into making an immediate decision with a long-term impact. Make temporary repairs if necessary.

• For major permanent repairs, shop around for contractors. Get at least three competitive bids. Check references.

• Be wary of door-to-door workers who claim to have left-over repair materials from a job "down the street" or who do not have a permanent place of business.

• Be leery if a worker shows up to announce that your home is unsafe. If you are concerned about possible structural damage in your home, have an engineer, architect or building official inspect it.

• Prepare a written contract agreement with anyone you hire. It should specify the work, the materials and the price breakdown for labor and materials. Review it carefully before signing.

• Any promises made orally should be written into the contract, including warranties on materials or labor.

• Never pay for all repairs in advance, and do not pay cash.

• Be aware that you have the right to cancel within three business days if you sign a contract based on a salesman who comes to your home.

• Check with your insurance company about policy coverage and specific filing requirements.

• Save all receipts, including those for food, temporary lodging or other expenses that may be covered under your policy.

• Check www.bbb.org for a report on the business or call the attorney general's consumer fraud hotline at (800) 386-5438 to check out a business and to find out how many consumer complaints, if any, have been filed against a particular business.