Attorney General Todd Rokita warns of scammers targeting weary Hoosiers following damaging storms, flooding

In the wake of recent severe storms, a powerful derecho and widespread flooding across Indiana, Attorney General Todd Rokita is urging all Hoosiers to remain vigilant against scammers exploiting the damage.  

Fraudsters are already circulating in affected neighborhoods, including door-to-door salesmen in places like Griffith who falsely claim “FEMA will pay for all of this.”  At this early stage, such a broad sweeping and confident assertion that the government or someone else will foot the bill is something that consumers should be on the lookout for and leery of.   

“Thousands of Hoosiers are assessing damage and beginning the hard work of rebuilding,” Attorney General Rokita said. “These fraudsters prey on people at their most vulnerable. Do your homework, be tenacious, demand everything in writing, and make sure your resources go to legitimate recovery—not into the pockets of con artists.” 

Scammers often arrive quickly after disasters and take advantage of the chaos and uncertainty that many Hoosiers are feeling right now. They may pressure homeowners to sign contracts on the spot in order to preserve their spot in line, claim a local list of licensed contractors has not yet been updated to include them, or assert that a home is unsafe and needs immediate (and expensive) work. Some offer to “manage” the insurance claim so the homeowner “doesn’t have to worry.” Others promise to waive deductibles, give referral discounts that reduce the deductible, or perform work for “whatever insurance pays.” 

Indiana law protects homeowners. Under the Home Improvement Contracts Act, contracts for residential repairs or improvements exceeding $150 must be in writing and include, at a minimum:  

• The name and address of the homeowner and the property; 

• The name, address, and contact information of the contractor (and any agents); 

•  A reasonably detailed description of the work; 

• Approximate start and completion dates  

• The full contract price; and  

• A clear statement if third parties or subcontractors will perform any of the work or supply materials 

Any change or expansion of the project requires a written, signed change order. Homeowners generally have three business days to cancel a home improvement contract with no questions asked. Contractors are prohibited from advertising, offering, or promising to pay or rebate any portion of an insurance deductible. They also cannot act as public adjusters. 

If a contractor violates HICA, that violation constitutes a “deceptive act” under Indiana’s Deceptive Consumer Sales Act.  A company or contractor who commits a deceptive act under the DCSA can be responsible for actual damages, attorney’s fees, and injunctive relief.   

Red flags and practical tips: 

• High-pressure tactics or insistence on signing immediately;  

• Verbal promises instead of a complete written contract; 

• Offers to waive or reduce your deductible (illegal)   

• Claims that “FEMA will pay for everything” or that the contractor will handle the entire insurance claim without your approval of changes;  

• Requests for large upfront payments or final payment before work is fully complete;   

• Failure to disclose use of subcontractors or third parties; and  

• Requests for multiple referrals or 5-star reviews in exchange for discounts that effectively reduce your deductible 

 Consumers should research the company independently and verify licensing and insurance requirements.  They should avoid large, upfront payments and never send final payment until a thorough walkthrough confirms every item in the written contract is complete, including debris removal and finishing details.   

Hoosiers who suspect they’ve encountered a scam should report it immediately to the Indiana Attorney General’s Consumer Protection Division at indianaconsumer.com or by calling 1-800-382-5516. 

A headshot of Attorney General Rokita is available for download. 

###