Contractor scams are becoming all too common across Ontario, with homeowners losing thousands of dollars to fraudulent builders. Recent cases in Toronto and Kawartha Lakes have shown that no area is immune to these scams. In one Toronto case, a contractor took large deposits, sometimes over $100,000, only to disappear without finishing or even starting the work. In Kawartha Lakes, door-to-door scams involving driveway paving and repair services have left many homeowners with shoddy work and empty wallets
Beyond the risk of financial fraud, there’s another often-overlooked danger: hiring a contractor without proper insurance. This can leave homeowners financially responsible for damages or injuries that occur on their property. Here's how you can protect yourself:
1-- Get Multiple Quotes and Do Your Research
Always get several quotes and research each contractor. Scammers often entice clients with lowball estimates, only to disappear after collecting a deposit. This was a common thread in both Toronto and Kawartha Lakes cases, where victims were lured by rock-bottom prices
2-- Check Insurance Coverage
One of the most critical steps in hiring a contractor is ensuring they have the proper insurance. **General liability insurance** protects you if a contractor causes property damage during the job, while **workers' compensation insurance** ensures you're not liable for any injuries to workers on your property. Without these, you could be held responsible for costly damages or medical bills if an accident occurs.
In many contractor scam cases, fraudsters operate without insurance, leaving homeowners to bear the financial consequences. Before signing any contracts, ask for proof of insurance and verify it with the insurance provider to ensure it's active.
3. Look for Reviews and References
Reading reviews and asking for references can reveal a contractor’s track record. In many scam cases, such as the Toronto fraud, victims didn’t check reviews, leading to costly mistakes.
Don’t hesitate to contact past clients to confirm the contractor's reliability and professionalism.
4. Avoid Large Upfront Payments
A common tactic among scammers is asking for large upfront payments. In Kawartha Lakes, residents were convinced to pay significant deposits for driveway paving before any work began and the results were often substandard. Instead, negotiate a payment schedule tied to project milestones to protect yourself.
5. Trust Your Instincts
If something feels off, it probably is. Scammers often pressure homeowners to make quick decisions. This was a recurring theme in both the Toronto and Kawartha Lakes cases, where contractors pushed for immediate payments
6. Always Get a Written Contract
A detailed, written contract is essential. It should outline the scope of work, deadlines, and payment terms. This protects you if things go wrong and provides a clear reference point for both parties.
Conclusion
Scammers can take advantage of homeowners in many ways, from overpromising and underdelivering to failing to carry the necessary insurance. Protect yourself by verifying your contractor's credentials, ensuring they have proper insurance, and trusting your instincts. At **SCC Builds**, we pride ourselves on transparency, quality work, and fully insured services. Contact us today for your next project!
Add comment
Comments