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Beware of insurance fraud by HVAC contractors!

Just comprehend a situation when your cooling system dies at the peak of the hottest summer month. What will be your usual way to deal with it? As the temperature and humidity rise rapidly, you will jump to action, eager to find a quick solution to this major inconvenience. If you do not have much knowledge about working of an AC and its parts and the kind of repair the unit needs you will be eager to find a person who can bail you out from the oppressive and dangerous heat. Under a tremendous emergency, you will hire a HVAC company who will quickly send a technician to your place and get your machine back on its feet. You will be relaxed without knowing that you have unknowingly rolled off one of the oldest insurance scams in existence

What is HVAC insurance fraud?

HVAC industry is full of scheming contractors who finds opportunities now and then to pull wool over the client’s eyes. In the recent times various households in the United States have been badly hit by insurance scams of HVAC contractors. Asa result some organizations are investigating these scams to locate the culprits and bring them to task.

What generally happens in insurance scams is that when you contact a servicing company to repair your machine, the provider tells you that your unit is in bad shape with some component beyond repair. The unit requires to be replaced. He also adds that if he mentions the problem as a damage caused due to inclement weather conditions then you will not have to worry about paying the whole amount for buying a new unit. The money will be shelled out by the insurance company, under your homeowner's policy. Whereas the truth is that a minor repair, say for example, changing a circuit breaker or buying a capacitor or a contactor would have remedied the situation. Such scams are being heard of since last 30 years.

According to Damon Stafford of HVAC Investigators, a company that investigates HVAC frauds– In many cases of insurance claims, it has been found that they have been made by owners who were told by their HVAC provider that the unit needs replacement where a minor repair would have restored the system back to per-loss condition.

What happens hereafter is quite obvious. You immediately call your insurance company about the damage. You’re completely innocent about the fact that you have propagated a fraud started by the HVAC service provider.

According to study carried out off late, the insurance scams are one of the most rampantly caused white-collar crimes in the U.S.These scams bamboozle almost more than $29 billion each year. A major hindrance in the way of smoking down these fraudsters is expenses. Many insurers feel that it is more cost effective to pay these false claims than hire an expensive mechanical or electrical engineer to seek the truth.

What does a HVAC fraud investigating company do?

These organizations that investigate the HVAC insurance frauds make use of local technicians to assist with investigations of heating and air-conditioning claims. These technicians charge a very reasonable fee which quite low compared to that of a typical engineer. They take a look at the unit and decide whether the insurance claims made by the owner are honest or dishonest.

However, this has made the situation all the more miserable for the homeowners. It has left them between a rock and a hard place. They are completely ignorant about the prank payed by the HVAC contractor who left a huge bill for repairing the AC unit what could have been done for a $100. But now as they hold the bill in in front of their insurance provider for making the payments, they are denied and rejected on the grounds of making false claims.

The only solution is to stay at bay from the fraudulent HVAC contractors. Before you hire a HVAC contractor, research online to know as much a possible about him. Always contact a couple of contractors and talk to them before selecting one. Ask whatever question you have in mind to size him up. Always ask for referrals of past clients and contact the latter to know their experience about service provider. Request for quotes and compare prices to select the best, taking into account other parameters as well.

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