Restoration scam red flags — at a glance
- “We’ll waive your deductible.” This is insurance fraud in Utah. Any company offering it is willing to break the law — ask what else they’ll do.
- Assignment of Benefits (AOB) pressure. They want you to sign over your insurance rights to them. Legitimate companies don’t need this.
- Door-to-door after a storm. “Storm chaser” crews travel between disaster areas, do bad work, and disappear. Local companies don’t need to knock.
- No written estimate. If they won’t put the price in writing, don’t sign anything.
- No license number. If they can’t give you a Utah DOPL number, they can’t legally do contractor work.
- Cash only. Legitimate companies invoice through insurance or financing. Cash-only is a laundering or disappearing-act red flag.
- Pressure to sign on-site. “If you don’t sign today, the price goes up.” Walk away.
- The quote is way too low. If one company is half the price of three others, they’re planning to upcharge, cut corners, or disappear with your deposit.
12 common restoration scams in Utah (and how to spot them)
1. “We’ll waive your deductible”
Illegal in Utah and most states. Your deductible is required by your insurance policy — a contractor can’t legally “eat” it. Companies that offer this are either committing fraud (billing the insurer for the deductible amount as if you paid it) or planning to upcharge you later. Either way, run.
2. Assignment of Benefits (AOB) scams
They hand you a form that assigns your insurance payment rights to them. Once signed, they bill your insurer directly for whatever they want, and you lose control of the claim. If disputes arise, you can be left personally liable for the difference. Never sign an AOB without reading it carefully. Legitimate companies don’t need one — they can be a named payee on an insurance check without you giving up your rights.
3. Storm-chaser crews
After a hailstorm or windstorm in Utah County, trucks with out-of-state plates show up offering free roof inspections. They pressure you to file an insurance claim, do substandard roofing or restoration, and vanish before the warranty matters. If you didn’t go looking for them, be suspicious.
4. The “insurance pays for everything, you pay nothing” pitch
Variant of the deductible scam. Insurance pays for covered losses up to policy limits, minus your deductible. Anyone who promises you’ll pay “nothing” is either planning to commit fraud or is lying about scope.
5. No written estimate, no written contract
“We’ll figure it out as we go.” You end up with an invoice far above the verbal estimate and no basis to dispute it. A legitimate restoration company gives you a written Xactimate scope before any demo starts.
6. Cash-only pricing
Legitimate restoration companies bill through insurance (Xactimate scope) or offer financing (Wisetack or similar). Cash-only with a deep discount is a laundering red flag, a deposit-and-disappear setup, or a way to avoid tax reporting that will come back to bite you.
7. Large upfront deposit
Reasonable deposits exist (20-30% is common for materials-heavy jobs). Deposits over 50% are a red flag. Deposits of 100% upfront almost guarantee disappearance.
8. Fake 5-star reviews
A pattern of 5-star reviews from Google accounts with no profile photo, no other reviews, and generic text (“Great service, highly recommend!”) suggests fake reviews. Real reviews have specifics: what the job was, how long it took, what the price was.
9. The “we’ve been in business for decades” claim without evidence
Check the Utah business registration. Companies claiming 30 years but registered in Utah 2 years ago are either new to Utah or lying. Nothing wrong with being newer — but lying about it is a tell.
10. Push to start work before insurance approval
“Just sign and we’ll start, don’t worry about the adjuster.” If you sign without insurance approval, you’re personally liable for everything if the claim is denied or scope-reduced. Legitimate companies work WITH the adjuster, not around them.
11. Scope that doesn’t match the damage
You had a small bathroom leak and the scope calls for replacing drywall throughout the whole upstairs. Over-scoping is how dishonest contractors steal from insurers — and you’re the one holding the receipts if the carrier catches it later. Review the scope line by line.
12. No local office you can visit
P.O. box address, phone that always goes to voicemail, no physical shop or warehouse — these are signs of a fly-by-night operation. Legitimate Utah County restoration companies have staffed offices you can walk into.
What a legitimate restoration company looks like
- Verifiable Utah DOPL license (publicly searchable)
- COI available within one business hour
- IICRC certified crew with firm and tech numbers
- W-2 employees, not subs
- Written Xactimate scope before any work starts
- Written warranty with specific coverage terms
- Local staffed office you can visit
- Pattern of real reviews across multiple platforms
- Never pushes you to waive deductible or sign AOB
- Works WITH your insurance, not around it
If you’ve been scammed
- Call your insurance company’s fraud line and report the contractor.
- File a complaint with Utah DOPL (Division of Occupational and Professional Licensing).
- Report to the BBB.
- If deductible fraud, report to the Utah Insurance Department.
- If large financial loss, contact a lawyer about recovery options.
Want a legitimate restoration company?
Call (385) 250-2825. Utah DOPL #11876543-5501, IICRC WRT/ASD/AMRT/OCT, W-2 crew, 24-month warranty, local Provo office. Family-owned and veteran-operated since 2020.
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