Protect yourself from home renovation scams
What is a home renovation scam?
Home renovation scams take advantage of homeowners who want to make repairs or improvements. Scammers may overcharge, damage your home, take your money and disappear without working, or even start work without your permission and then demand payment. This scam has been increasing in frequency, particularly among vulnerable targets like seniors.
How home renovation scams work
A scammer offers repair work
There are two common approaches scammers use when they show up at your home:
- They will claim that they were in the neighbourhood working on another home and offer to give you a deal because they have leftover supplies.
- Or, they will offer to inspect an area in your home (chimney, furnace, roof, etc.) for free, and then claim they found a dangerous problem that needs immediate repair.
You’re pressured to pay immediately
The scammer will demand payment, claiming that there will be serious and expensive damages to your home if repairs don’t begin as soon as possible. Also, they may claim that they only take cash, or offer to give you a better deal if you pay in cash.
The repairs will cause more harm then good, if they even happen
In some cases, a scammer will actually begin the work without permission, hoping that this makes you feel obligated to pay them. For example, they might begin pulling up roof tiles, creating the need for immediate repair.
Once they have collected a payment, scammers will often disappear without doing the repair work.
How to protect yourself from home renovation scams
- Don’t pay someone for a service unless you have an agreement in writing, like a contract or estimate.
- Before hiring someone for home repairs, collect estimates from different companies or contractors so that you have a sense of what it should cost.
- Don't accept unsolicited offers of work or inspections.
- Never pay the full amount before repairs are complete. Legitimate contractors won’t require full payment up front. Reasonable down payments usually range from 10% to 20%.
- Don’t let a contractor pressure you into beginning work immediately. If someone works on your house without permission and then demands payment, call local law enforcement to report the situation.
Remember: Always verify the identity of your contractor (beyond a phone number and web page, which are easily created). Check that they are insured and ask for references.
How to report a home renovation scam
If you think that a home renovation scam has compromised your banking or personal information, report the incident to Meridian by calling 1-866-592-2226.
Helpful resources