Storm Contractor Scams in Louisiana: How to Protect Yourself After a Hurricane
After every major storm, Louisiana officials repeat the same warnings about contractor fraud. After Hurricane Ida in 2021 and Hurricane Francine in 2024, state and local agencies told homeowners to verify licenses, get written contracts and avoid large upfront payments. Mold remediation and drying work are part of that picture, because water damage needs fast action and that urgency is easy to exploit.
This guide summarizes those official warnings and the Louisiana laws behind them, in plain words. It is general information, not legal advice.
Storm scam checklist (updated November 2026).
- Verify the company's license with the Louisiana State Licensing Board for Contractors (LSLBC) before you pay anything or sign.
- Get a written contract with the license number, a description of the work, the price and insurance certificates.
- Don't make a large upfront payment. Use a payment schedule tied to progress.
- Never pay in cash, gift cards, wire transfer, payment apps or cryptocurrency (FTC, DOJ and CFPB joint warning, October 2024).
- Taking payment and not starting work within 45 days can be residential contractor fraud in Louisiana (R.S. 14:202.1).
- Be wary of anyone who knocks on your door uninvited offering work.
What do storm contractor scams look like?
Official warnings after recent storms describe the same patterns:
- Door-knockers. Louisiana Insurance Commissioner Tim Temple, after Francine in September 2024, warned homeowners to be wary of anyone they did not contact offering to work on their home.
- Pressure to sign today. The same warning listed high pressure, vague answers and no written estimate as red flags.
- Big deposits. NOPD's September 2021 Ida guidance told residents never to give a down payment over 10 percent of the total project cost.
- Cash or untraceable payment. NOPD told residents never to pay with cash or money order. The October 2024 FTC, DOJ and CFPB joint warning said only scammers insist on payment by wire transfer, gift card, payment app, cryptocurrency or cash.
- No license, or someone else's. A company that won't give a license number, or whose name doesn't match the LSLBC record, is a warning sign.
- Fake requirements. In 2016, LSLBC told WAFB it knew of no legal requirement for a mold certificate, inspection or clearance for flooded homes. Be skeptical of anyone who says you must buy one to move back in.
What Louisiana law says about contractor fraud
Louisiana's residential contractor fraud law, R.S. 14:202.1, lets a court infer misappropriation of payment in several situations, including when a contractor:
- Fails to perform any work for 45 days or longer after receiving payment, unless the contract specifies a longer period.
- Uses deception, false statements or false promises to get the contract.
- Damages property to persuade the owner to sign.
- Does not hold the required license.
Penalties increase with the amount of money involved. Separately, Louisiana's Unfair Trade Practices law (R.S. 51:1405) makes unfair or deceptive practices in trade unlawful.
Does a mold company need a license after a storm?
For bigger jobs, yes. Louisiana requires a Mold Remediation license from the LSLBC for mold remediation projects of about $7,500 and up (La. R.S. 37:2150.1). A job split into smaller contracts to stay under the threshold is treated as one contract. Before you sign, look up the company's license on the LSLBC website. For licensed work, the contract must include the license number, a description of the work, the price and insurance certificates, and no work should begin before everyone signs (R.S. 37:2159). Our post on the Louisiana mold remediation license walks through the lookup.
Also remember the two-company rule: a mold remediation contractor may not also do the mold assessment on the same property, or own the company that does (R.S. 37:2158). A door-knocker offering a "free mold test" that turns into a remediation contract from the same outfit deserves a second look.
Can I cancel a contract I signed at home?
Possibly. Louisiana's home solicitation law (R.S. 9:3538) and the FTC's Cooling-Off Rule can give a 3-day right to cancel some contracts signed at your home. There are exceptions. For example, under Louisiana law, if you asked the company to start right away because of an emergency and it has made a substantial start before you cancel, you may not be able to cancel. Read any cancellation notice in your contract carefully, and cancel in writing if you decide to. If you're unsure, talk to a lawyer or a legal aid office.
What to do before you hire anyone after a storm
Call your insurer first
Commissioner Temple's 2024 advice: if you need to file a claim, contact your insurer first. FEMA says NFIP policyholders should talk to their adjuster before signing a cleaning or remediation contract.
Document the damage
Photograph and video everything before tear-out, keep samples if your adjuster asks, and dry out within 24 to 48 hours where you can.
Get more than one written estimate
NOPD's 2021 guidance recommended at least three, noting your insurer may require it.
Verify and read before you sign
Check the LSLBC license, ask for proof of liability insurance and workers' comp, and read the payment schedule and cancellation terms.
Pay by traceable methods
Use check or card, keep receipts, and don't pay for work that hasn't been done.
Flood damage goes to your flood (NFIP) policy, and wind, roof and plumbing damage usually goes to your homeowners policy. Mold coverage depends on the cause and your policy's mold limits. Our flood and water damage mold page covers the first days after water gets in, and the mold remediation cost page shows published price ranges so you can spot a quote that is far out of line.
Where to report a suspected scam
You can file a complaint with the LSLBC about unlicensed or improper contracting, contact the Louisiana Attorney General's Consumer Protection Section, and report disaster-related fraud to the National Center for Disaster Fraud. After Ida, the Louisiana AG and the U.S. Attorney jointly urged residents to report fraud there. Find current contact details on each agency's official website. If you were threatened or paid someone who disappeared, call your local police too.
How a quote service fits in
NOLA Mold Remediation is a free quote service, not a contractor. We don't inspect, test or remediate, and we can't vouch for any company's license, so please verify each one with the LSLBC yourself. Some companies pay to receive requests. Describe your situation any time, and independent companies serving New Orleans and nearby parishes reply on their own schedules. You can also read our mold removal page to know what a normal job looks like. Request a free quote or call (504) 370-1142.
Frequently asked questions
How do I check if a contractor is licensed in Louisiana?
Look up the company on the Louisiana State Licensing Board for Contractors (LSLBC) website before you pay or sign. Mold remediation projects of about $7,500 and up require an LSLBC Mold Remediation license (La. R.S. 37:2150.1), and the license number should appear on the written contract.
How much of a deposit should I pay a storm contractor?
Keep it small and tied to progress. After Hurricane Ida in 2021, NOPD advised never giving a down payment over 10 percent of the total project cost and never paying for work not yet completed. Louisiana Insurance Commissioner Tim Temple's 2024 Francine guidance also warned against large upfront payments.
What if a contractor took my money and never started?
Under Louisiana's residential contractor fraud law (R.S. 14:202.1), failing to perform any work for 45 days or more after receiving payment, unless the contract allows longer, can support an inference of fraud. Keep your contract and receipts, contact local police, and consider complaints to the LSLBC and the Louisiana Attorney General. This is general information, not legal advice.
Can I cancel a contract I signed after a door-knocker visit?
Possibly. Louisiana's home solicitation law (R.S. 9:3538) and the FTC Cooling-Off Rule can give a 3-day right to cancel some contracts signed at home, but there are exceptions, including emergency work you asked for that has already substantially started. Read the cancellation notice and cancel in writing. Talk to a lawyer if unsure.