Don’t Let Contractor Fraud Ruin Your Paver Investment: A 2024 Guide to Verifying Insurance and Licensing

Homeowners across the country are falling victim to paver sealing scams at an alarming rate, with some losing over $8,000 to fraudulent contractors who disappear after taking deposits or perform substandard work. The schemes usually begin with solicitation, or a knock at the door. The fraudster typically presents a deal to re-pave a driveway, seal it, or provide other stone or concrete work. Fraudsters will attempt to create a sense of urgency for the homeowner to agree to the work immediately, sometimes without any formal contract. The fraudster typically takes a monetary deposit from the homeowner, begins work and fails to complete it, often leaving the homeowner’s property in worse condition than it started.

Why Proper Licensing and Insurance Verification Matters

Before hiring any paver sealing contractor, understanding the importance of proper credentials is crucial for protecting your investment. This means you need to be sure that your contractor has the proper license, insurance, and surety bond to complete the task. Hiring a licensed contractor offers numerous benefits, including legal recourse if something goes wrong. On the flip side, hiring an unlicensed contractor can leave you with little to no protection.

Licensed contractors have typically met specific requirements including taking certain classes and passing competency tests plus proving they have an insurance policy. This verification process ensures they possess the necessary skills and knowledge to perform paver sealing work safely and effectively.

Red Flags of Paver Sealing Scams in 2024

Law enforcement agencies across the country have issued warnings about common tactics used by fraudulent paver sealing contractors. Be wary of contractors who:

• Make unsolicited offers. Most scams begin when an individual appearing as a contractor goes out of their way to offer an estimate without request.
• Provide no written contract upfront. The absence of a written and signed contract before any work, is a dead giveaway that a homeowner is about to be the target of a scam or receive poor quality.
• Push you to make a quick decision. Be cautious of contractors who insist on on-the-spot hiring.
• Demand cash-only payments. Most reputable contractors accept checks or credit cards and do not require cash-only terms.
• Operate from unmarked vehicles or have out-of-state license plates. Roaming scammers often drive unmarked trucks or have out-of-state license plates.

Step-by-Step Guide to Verifying Contractor Credentials

1. Check Licensing Status

Each state has its own set of regulations governing what a general contractor needs to work and how to check a contractor license. While most states do regulate contractors in some ways, some states don’t have any licensing laws, and even individual cities or counties can have their own laws. Start by verifying the contractor’s license status using state-specific databases or online verification tools. For example, the Department of Labor & Industries Verify Tool in Washington State provides details on a contractor’s license status, ensuring they have an active registration.

2. Verify Insurance Coverage

Insurance verification is critical for protecting yourself from potential liabilities. Always ask for proof of insurance, such as a certificate, and then call the provider to check that the policy is up to date and will cover your project. There are two main types of insurance you need to check: General Liability Insurance: This covers any damage the contractor might cause to your property. Ask for proof of insurance and contact the insurance company to verify coverage.

Beware of Fraudulent Insurance: There have been cases of contractors presenting fake insurance documents. Always follow up directly with the insurance company to confirm the coverage is real and current.

3. Confirm Bonding Status

Being bonded means the contractor has secured a surety bond. This is a type of insurance that protects you if the contractor fails to complete the job or meet other financial obligations. To verify a contractor’s bond, ask for their bond information and contact the bond company to ensure it is valid and in good standing.

How Reputable Companies Like Paver Savers Set the Standard

When searching for paver sealing companies near me, look to established businesses that demonstrate transparency and professionalism. Paver Savers is a fully licensed and insured, locally owned and operated company that specializes in paver cleaning, sealing, and restoration. We’re passionate about providing our clients with the highest quality results at the fairest and most affordable prices.

Based on Long Island, New York, Paver Savers serves Nassau and Suffolk counties with professionally trained and highly experienced technicians who are ready to serve all of your hardscape cleaning, maintenance, and renovation needs. The company demonstrates best practices by maintaining proper licensing and insurance while providing transparent communication throughout the process.

Additional Protection Strategies

Research and References

Before you agree to hire a contractor and make payment, start with BBB.org. If the contractor has multiple negative reviews and complaints, don’t hire them. A simple internet search often reveals companies or individuals involved in fraudulent activities or provided unsatisfactory work to previous clients.

Contract and Payment Best Practices

Get everything in writing. Ask for an estimate in writing before payment is even discussed. Don’t let a contractor start working on a project until a written, signed contract outlining start and complete dates, a detailed description of the work, material costs, payment arrangements, and warranty information is provided.

Stagger payments. Most contractors will require a percentage of the total price upfront, but it should never be the full price before the work has begun. Never pay for the entire project before the work begins. And do not pay more than 25% or, at most, one-third of the total cost as a down payment.

What to Do If You Encounter Fraud

If you suspect you’ve encountered a fraudulent contractor, take immediate action. If you encounter what you believe to be a fraudulent paving situation, do not hesitate to report it. It protects not only yourself but also others who might fall victim. If you suspect you have fallen for a contractor scam, report it to BBB.org/ScamTracker. Your report can help alert others to similar scams.

By taking the time to properly verify licensing, insurance, and bonding status, you can protect yourself from the growing number of paver sealing scams plaguing homeowners in 2024. Remember that reputable contractors will welcome your questions about their credentials and will readily provide proof of their qualifications. Don’t let urgency or pressure tactics override your due diligence – your property and financial security depend on making informed decisions when selecting a paver sealing contractor.