How to avoid becoming a victim of hail damage repair scams as spring, summer thunderstorms arrive

COLORADO SPRINGS, Colo. (KRDO) -- Strong thunderstorms expected Wednesday are a reminder that we're in the season when drivers and homeowners worry about hail damage -- and getting it repaired as quickly and inexpensively as possible.

That desire attracts fly-by-night scam artists -- most of whom arrive from outside Colorado, experts say -- who promise to fix damage promptly and offer discounts if they are paid in advance, only to quickly disappear without doing any work, and being impossible to find after you pay them.

KRDO reached out to the Better Business Bureau and the Rocky Mountain Insurance Information Association for advice on how to avoid becoming a victim.

"First, check the license plate of the shiny new truck that pulls up to your house," said Jonathan Liebert, executive director of the southern Colorado BBB. "If it's from out of state, the person driving it probably isn't legit. Don't pay cash up front. If you do, use a credit card and if the person turns out to be dishonest, you'll have some hope of getting your money back. You're much better off using local repair businesses that have a reputation for honest work."

Thousands of vehicles, structures and other property across southern Colorado were damaged or destroyed during severe hailstorms in the summers of 2017, 2018 and 2019; those storms often overwhelmed the ability of local businesses to make quick repairs, and served as even more incentive for scam artists.

Intrestingly, Liebert also said that the COVID-19 pandemic has forced many normally-honest repair businesses to be dishonest.

"Some of these folks may have gone out of business during COVID," he explained. "Some might be struggling because of COVID and have not done this before, but are going to try and get more business by going into other states and making sure they're covering their business costs. But they're unable to guarantee a level of service because of worker shortages or supply chain issues. This all makes it difficult to know how many repair businesses are coming here from other states."

Liebert said that while most of the complaints received by the BBC pertain to house roofs, the concerns expressed about vehicles is that repairs take too long or are unfinished, or the person in charge of repairs is difficult to reach.

Carole Walker, of the RMIIA, said that it's essential for people to read the fine print of a contract with a repair business, understand it, and know what your insurance policy does and doesn't cover.

"Don't fall for high-pressure sales pitches," she said. "We do have some consumer protections in place in Colorado. For example, you have 72 hours to get out of a contract with some of these scammers. So, know what your rights are."

Colorado ranks second nationally in the number of hail-related insurance claims.