How to Hire a Contractor After a Wildfire or Natural Disaster

After a wildfire, a flood, or another disaster, homeowners are under huge pressure to hire fast.

The contractor market in a disaster area gets crowded in a hurry. That rush creates real risk for homeowners who just need to rebuild.

The Disaster Contractor Problem

After a big disaster, out-of-area contractors flood in looking for work.

Some are excellent pros, and the extra hands are needed. Others are out to take advantage. They know a desperate homeowner is less likely to ask hard questions, check licenses, or push back on a high price.

Disaster-rebuild bids can be all over the map. Part of that is real market pressure. Part of it is that some contractors know they can charge well above normal.

Before You Sign Anything After a Disaster

• Check that the CSLB license is active at contractors.ca.gov.
• Make sure the license class matches the work.
• Ask for proof of liability insurance and workers' compensation.
• Get at least two bids, even if the market feels tight.
• Do not sign anything under pressure. Take at least 48 hours to look over any contract.
• Have your bid reviewed by a superintendent before you commit.

Red Flags Specific to Disaster Situations

• The contractor asks for a large deposit right away. (In California, the deposit is still capped at 10% of the contract or $1,000, whichever is less.)
• No written contract. Just a verbal one.
• The contractor talks you out of getting other bids.
• An out-of-state contractor with no local track record.
• A price that is far above, or far below, everyone else.

Working with Your Insurance

If you have an insurance claim, the insurance company will give you an estimate. That is what they think the repair should cost.

That estimate is a starting point. It is not the final word.

You have the right to hire your own contractor. And you can go back to the insurance company if the contractor's bid comes in higher than the estimate.

A superintendent who reads both the insurance estimate and the contractor bids can be a big help here.