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Since Katrina, contractor fraud has been a serious problem in New Orleans. To protect yourself from fraud, take the following precautions:
- Be very hesitant about giving money up front.
- Create a written contract that states every task that the contractor will complete.
- Ask for proof of insurance. The best way to do this is to ask for a certificate of general liability insurance with the homeowner’s name listed as a certificate holder. With this document, the insurance company will contact the homeowner if the contractor cancels his policy.
- Check the contractor’s references. You can also go to the Better Business Bureau website to see if any complaints have been filed against them: www.neworleans.bbb.org
- Keep all receipts for anything related to the contractor’s work.
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