Within days of the storm the trucks with out-of-state plates arrive, the phone rings with "FEMA inspectors," and the offers of fast cash multiply. The rebuild is where your recovery is most exposed, and every scam that follows a disaster runs on the same fuel: urgency. Naming them in advance takes most of their power away.
Contractor fraud: the storm-chasers
Storm-chasers are out-of-area operators who follow the damage, and in the moment they look like every other roofer. The pattern gives them away.
| Red flag | Why it matters | What careful work looks like |
|---|---|---|
| A large deposit up front — half the job or more | The money can leave town before the work starts | A modest deposit, then payments tied to completed milestones; several states cap the deposit a contractor may take |
| No written contract, or "we'll sort the details later" | Nothing to enforce | A contract with scope, price, schedule, who pulls the permit, and a final payment after inspection |
| Pressure to sign today | Urgency is the tool | Time to check the license and call references |
| Cash only | No paper trail to dispute | A check or card, with receipts |
| No license number, no insurance certificate | Unlicensed or uninsured; an injury on your roof becomes your claim | A license you verified with the state board and a liability and workers' compensation certificate you confirmed with the insurer |
The vetting is unglamorous and it works: look the license up on your state contractor licensing board's site (it lists complaints too), ask for the insurance certificate and call the insurer to confirm it is current, call two local references from the last year, and make sure the contractor pulls the building permit — a contractor who wants you to pull it is dodging inspection. Before the final payment, collect a signed lien waiver; an unpaid subcontractor or supplier can otherwise file a lien on your home for money you already paid the contractor.
Fake charities, fake inspectors, fast cash
- Fake charities appear overnight with names that echo real relief groups. Check any charity in the IRS Tax Exempt Organization Search (apps.irs.gov/app/eos) and your state's charity regulator, and give by card or check, never by gift card, wire or crypto.
- Fake FEMA inspectors and officials ask for a fee to "release" aid, or for your bank details at the door. A real FEMA inspector carries FEMA photo identification and never asks for money; FEMA already has your bank details from your registration. Report an impostor to the FEMA helpline at 1-800-621-3362 and to ReportFraud.ftc.gov.
- Fast cash — high-APR disaster loans and "advances" against your insurance claim — targets the weeks before the settlement arrives. The SBA disaster loan at 4% or less, or a credit union loan, is the borrowing that fits; the common-scams lesson shows how the fast-cash pitch is built.
- Grant-for-a-fee offers — "we can get you FEMA money" — are impostors too; every federal disaster application is free.
Every one of these needs a decision now, before you can verify. Slowing down for one phone call is the whole defense.
Guarding credit and identity in the chaos
A disaster scatters exactly what identity thieves want — mail, statements, IDs — across debris fields and temporary housing while your attention is elsewhere. Four moves in the first week:
- File a change of address with the Postal Service so statements, insurance checks and FEMA letters reach you, not a wrecked mailbox.
- Freeze your credit at all three bureaus. A credit freeze is free and blocks new accounts in your name; lift it for the SBA application and refreeze it after.
- Pull your reports at AnnualCreditReport.com and read them again in three months.
- If your identity is misused, IdentityTheft.gov builds the recovery plan and the letters.
The disaster also ripples into the long-term picture:
| Long-term ripple | What it looks like | What to do |
|---|---|---|
| New debt | The SBA loan payment sits in the budget for years | Fit it into the budget planner before you borrow, not after |
| A dented net worth | Lost equity and belongings | Rebuild on the timeline in the setback lesson |
| Higher premiums or a non-renewal | Insurers reprice or leave a region after a catastrophe | Shop early at renewal; ask what mitigation upgrades — a fortified roof, shutters — earn discounts |
| Tax records | The uninsured loss is deductible | Keep the estimates, receipts and insurance letters in the Publication 547 folder |
The rebuild is where the recovery is most exposed, because the people circling it know that. The defenses are steady: verify the license, insist on the contract, pay by milestone, refuse the AOB, check the charity, distrust anyone charging for aid, and guard your credit until the last check clears.