NICB's Contractor Fraud Awareness Week runs
May 20-24, 2024
OAK
BROOK, Ill., May 21, 2024
/PRNewswire/ -- Twenty states across the nation are joining
together with the National Insurance Crime Bureau
(NICB), the insurance industry's association dedicated to
preventing and prosecuting insurance crime, to fight contractor
fraud
that often occurs after a natural disaster. NICB works to educate
homeowners and business owners about how to avoid becoming a victim
of deceptive contractors as part of its annual Contractor
Fraud
Awareness Week (CFAW), which runs from May 20 to May 24, 2024.
"Contractor fraud, especially after a natural catastrophe, not
only affects individual homeowners, but also impacts insurance
premiums and costs Americans billions of dollars every year,"
said David J. Glawe, President
and CEO of NICB. "This type of fraud not only undermines
trust within communities but also inflicts significant financial
and emotional harm on families across the nation."
Last year was a historic year for billion-dollar weather and
climate disasters in the U.S. with 28 separate events costing at
least $1 billion and totaling more
than $93 billion in catastrophe
losses. Upwards of 10 percent or $9.3
billion is lost to post-disaster fraud.
The following states and Puerto
Rico have officially recognized Contractor Fraud Awareness Week
to combat this growing trend:
- Alabama
- Arkansas
- Connecticut
- Florida
- Illinois (Resolution)
- Indiana
- Kentucky
- Louisiana
- Massachusetts
- Missouri
- Mississippi
- Montana
- Nebraska
- New Hampshire
- North Dakota
- Oklahoma
- Pennsylvania
- South Carolina
- West Virginia
- Wisconsin
NICB partners with government agencies, as well as insurance
carriers, to educate homeowners and businesses on how to avoid
becoming victims of insurance fraud. NICB also sponsors public
awareness events across the country and works with local law
enforcement agencies to help catch fraudsters taking advantage of
hardworking Americans. Additionally, NICB participates in federal,
state and local task forces, fusion centers, and intelligence
groups, while working strategically with lawmakers and regulators
in all 50 states to boost efforts by insurers and law enforcement
to combat insurance fraud.
"Contractor fraud is a crime that thrives in the shadows. By
arming ourselves with knowledge, vigilance, and a healthy dose of
skepticism, we can protect our homes and our hard-earned money,"
Glawe said. "Homeowners should be wary of high pressure
sales tactics and should seek multiple bids. Always get a signed
contract and beware of upfront payments. Finally, watch for red
flags and trust your gut feelings."
NICB recommends following these tips before hiring a
contractor:
Be Proactive
- Assess Damages: If you think you have catastrophe-related
damage, reach out to your insurance company, and ask for
clarification on your coverage.
- Recruit a Professional: Seek out a licensed, insured, and
well-reviewed contractor before any potential fraudulent
contractors come knocking on your door.
Research and Verify Before Signing Anything
- Research and Verify: Before hiring a contractor, research their
credentials, reputation, and track record. Check for licenses,
certifications, and reviews from previous clients. Verify their
insurance coverage and inquire about any past complaints or legal
issues.
- Get Multiple Quotes: Obtain bids from multiple contractors for
comparison. Be wary of significantly low bids, as they may indicate
substandard work or hidden costs. Aim for a balance between
affordability and quality.
- Beware of Red Flags: Be alert to red flags such as
high-pressure sales tactics, vague or evasive answers, or
reluctance to provide written estimates or contracts. Trust your
instincts and proceed with caution if something seems off.
Stay Involved and Take Account
- Written Contracts: Always insist on a written contract
detailing the scope of work, materials, timeline, and a payment
schedule that does not include large upfront payments. Review the
contract carefully, ensuring that all terms and conditions are
clearly outlined and agreed upon by both parties.
- Stay Involved: Stay actively involved in the project by
regularly communicating with the contractor and monitoring
progress, while keeping records of all work communications.
- Seek Legal Advice if Necessary: If you suspect contractor
fraud
or encounter significant problems during the project, seek legal
advice promptly. A legal professional can help you understand your
rights, explore options for resolution, and take appropriate action
to protect your interests.
Report Fraud
Anyone with information
concerning insurance fraud or vehicle theft can report it by calling
toll-free 800.TEL.NICB (800.835.6422).
About the National Insurance Crime
Bureau: Headquartered in Oak
Brook, Ill., the National Insurance Crime Bureau (NICB) is
the nation's leading not-for-profit organization exclusively
dedicated to combatting and preventing insurance crime through
Intelligence, Analytics, and Operations; Education and Crime
Prevention; and Strategy, Policy, and Advocacy. NICB is supported
by more than 1,200 property and casualty insurance companies and
self-insured organizations. To learn more, visit NICB.org.
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SOURCE National Insurance Crime Bureau