After every Florida hurricane, contractor fraud surges. Unlicensed operators, out-of-state storm chasers, and unscrupulous local contractors descend on storm-damaged areas with inflated estimates, pressure tactics, and in some cases outright fraud. For property managers overseeing multiple damaged properties simultaneously, the vulnerability is acute -- post-storm pressure to get repairs underway fast creates exactly the conditions where fraud thrives.
Understanding the common fraud types and the red flags that identify them is one of the most practical things a Florida property manager can do before storm season begins.
Common Fraud Types
Storm Chasers
Storm chasers are out-of-state contractors who follow major weather events, appearing in affected areas within hours or days of a storm. They are typically not licensed in Florida, have no local permit history, and operate on a hit-and-run basis -- collecting deposits, completing minimal work, and disappearing before problems surface. After Hurricane Ian, complaints about out-of-state contractors without Florida licenses represented a significant portion of post-storm consumer fraud reports.
Inflated Estimates
Some contractors produce inflated estimates specifically designed to maximize the insurance payout, with the understanding that the excess will be split between contractor and property owner or that the contractor will simply pocket the difference. Inflated estimates are insurance fraud, and property managers who knowingly participate can face policy cancellation and criminal exposure. If an estimate seems dramatically higher than others you received, that is a signal to investigate.
AOB Abuse
Assignment of benefits (AOB) fraud involves pressuring property owners to sign over their insurance claim rights to a contractor. Before Florida's 2022 SB 2-D reform, this was a massive industry that inflated claims and drove carrier exits. While the reform removed the primary economic incentive (one-way attorney fees), some contractors still attempt to get AOB signatures. Never sign an AOB. It transfers control of your claim to the contractor.
Permit Fraud
Performing permitted work without pulling a permit, falsifying permit documentation, or using someone else's license to pull a permit are all forms of permit fraud. The downstream consequences for the property manager include unpermitted repairs that may complicate future insurance claims, code violations that must be corrected at your expense, and potential safety issues from work that was never inspected.
Unlicensed Contractors
Florida requires licenses for roofing, general contracting, electrical, plumbing, and HVAC work. Unlicensed contractors are not subject to DBPR discipline, do not carry required insurance, and often produce substandard work. Using an unlicensed contractor can void the workmanship warranty on the repair and create complications if the work fails and triggers a subsequent insurance claim.
Red Flags to Watch For
- Unsolicited door-knocking immediately after a storm -- legitimate contractors are busy; those who show up uninvited at your properties are often storm chasers
- Pressure to sign before you have other estimates -- any contractor who creates artificial urgency to close before you shop is a red flag
- Requests to sign an AOB or assignment document -- never sign these without your attorney reviewing them
- Cash-only demands or requests for large upfront deposits -- standard contracting practice is 10-30% deposit with balance on completion; cash-only is a fraud signal
- No local address or no local permit history -- verify the contractor has a local physical address and has pulled permits in the county
- License number that does not match the contractor name -- some contractors borrow or misrepresent another contractor's license
Verifying a Contractor License
Florida contractor license verification is free and takes two minutes at myfloridalicense.com (the DBPR online lookup). Enter the contractor's name, company name, or license number. The result shows:
- License status (active, expired, suspended, revoked)
- License type (confirm it matches the work being proposed)
- Expiration date
- Any disciplinary actions or complaints
Also request a certificate of insurance showing general liability and workers compensation coverage. Confirm the certificate is current and the coverage limits are adequate for the scope of work.
The best defense against post-storm contractor fraud is having a pre-vetted vendor list built before the season starts. When you already have licensed, insured, locally-established contractors on call, you are not desperate for the first contractor who shows up after a storm. Pre-season vendor vetting eliminates most of the fraud risk entirely.
Getting 3 Estimates
For any repair job over $5,000, get at least three written estimates from licensed contractors before selecting one. Three estimates let you identify outliers -- both artificially inflated estimates and suspiciously low estimates that may signal shortcuts or underscoped work. The estimates should be itemized so you can compare line by line, not just total price.
What Your Insurer Requires Before Work Begins
Contact your insurer before authorizing any permanent repair work. Most Florida policies require the insurer to have the opportunity to inspect damage before permanent repairs begin. Emergency mitigation -- tarping, boarding, water extraction -- should proceed immediately. Permanent repairs should wait for adjuster inspection or explicit written authorization from the insurer.
Post-Repair Documentation
After repairs are completed:
- Confirm all required permits were pulled and inspections closed
- Photograph completed work
- Obtain itemized paid invoices for all work performed
- Get written warranties on workmanship and materials
- Store all documentation in the property file
Track vendor vetting and repair documentation in LossHQ
Store contractor licenses, insurance certificates, and repair documentation for every property in your portfolio.
Start Free -- No Card Required ->The Bottom Line
Post-hurricane contractor fraud is predictable -- it follows every major storm. Property managers who have pre-vetted vendor lists, who know how to verify a Florida contractor license, and who understand the AOB red flags are largely immune to the most common fraud scenarios. The investment of time before storm season pays off when the fraudsters show up after. For related guidance, see common Florida claim denial reasons, storm debris removal coverage, and Florida roof insurance claims.