"Usually, contractors involved in disaster recovery are honest and truly want to help," said State Coordinating Officer Joan Haun. "Unfortunately, there's always the chance some will try to take advantage of others' misfortunes, so disaster victims should be aware and alert while rebuilding."

People should be especially alert for phone or door-to-door solicitors who promise to speed up the insurance, disaster assistance or building-permit process, and those who ask for large cash deposits or advance payments in full.

"Disasters attract scam artists, some who claim to be 'FEMA certified," said Federal Coordinating Officer Sandy Coachman. "Remember that FEMA neither certifies nor endorses any business for repairs."

Those who suspect anyone - a contractor, inspector, disaster victim or someone posing as any of these - of committing fraudulent activities should call the FEMA Disaster Fraud Hotline at 1-866-720-5721. Allegations of fraud can also be made to local law-enforcement agencies and to the Texas Attorney General Consumer Protection Hotline, 1-800-621-0508.

Tips for hiring contractors include:

• Get a written estimate. Compare services and prices before making a final decision. Also, read the fine print. Some contractors charge a fee for a written estimate, which is often applied to the cost of subsequent repairs they make.
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• Use a reliable, licensed contractor, and check out a contractor before you sign a contract or pay any money. Check if the contractor is registered with the Texas Department of Licensing and Regulation (www.license.state.tx.us, 1-800-803-9202) and has any complaints. You can also check online with the Better Business Bureau: www.bbb.org.

• Check references. Contractors should be willing to provide names of previous customers. Call former customers who had similar work done to make sure they were satisfied with the job

• Ask for proof of insurance. Make sure the contractor carries general liability insurance and workers' compensation. If the contractor is not insured, the homeowner may be liable for accidents that occur on the property.

• Insist on a written contract. A complete contract should clearly state all tasks to be performed, all associated costs and the payment schedule. Never sign a blank contract or one with blank spaces. Make sure the contract clearly states who will apply for the necessary permits or licenses. Have a lawyer review the contract if substantial costs are involved, and keep a copy for your records.

• Get guarantees in writing. Any guarantees made by the contractor should be written into the contract. The guarantee should clearly state what is guaranteed, who is responsible for the guarantee and how long the guarantee is valid.

• If necessary, cancel a contract in the proper manner. This should be done within three business days of signing. Be sure to follow the procedures for cancellation that are set out in the contract. Send the notification by registered mail with a return receipt to be signed by the contractor.

• Obtain a local building permit, if required. Permits may be required for rebuilding work. Contact your local government for permit information.

• Make final payments when the work is completed. Do not sign completion papers or make the final payment until the work is completed to your satisfaction. A reputable contractor will not threaten you or pressure you to sign if the job is not finished properly. Keep in mind that some contractors may charge for an initial estimate.

• Pay by credit card, if possible, or by check. Avoid on-the-spot cash payments. Instead, pay with a check or by credit card so there is a record of the transaction. A reasonable down payment is 30 percent of the total cost of the project, to be paid upon initial delivery of materials.