Twenty states, along with the National Insurance Crime Bureau (NICB), are collaborating to address contractor fraud that often occurs after natural disasters.
NICB, an insurance industry association dedicated to preventing and prosecuting insurance crime, announced that it is working to educate homeowners and business owners on avoiding deceptive contractors during its annual Contractor Fraud Awareness Week (CFAW), scheduled 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,” NICB president David J Glawe said. He added that such fraud undermines community trust and causes significant financial and emotional harm to families nationwide.
Last year, the US experienced 28 separate weather and climate disasters costing at least $1 billion each, totaling more than $93 billion in catastrophe losses. An estimated 10%, or $9.3 billion, of these losses were attributed to post-disaster fraud.
The states and Puerto Rico recognizing Contractor Fraud Awareness Week to combat this growing trend include: Alabama, Arkansas, Connecticut, Florida, Illinois (Resolution), Indiana, Kentucky, Louisiana, Massachusetts, Missouri, Mississippi, Montana, Nebraska, New Hampshire, North Dakota, Oklahoma, Pennsylvania, South Carolina, West Virginia, and Wisconsin.
NICB partners with government agencies and insurance carriers to educate homeowners and businesses on avoiding insurance fraud. The bureau sponsors public awareness events nationwide and collaborates with local law enforcement to catch fraudsters.
NICB also participates in federal, state, and local task forces, fusion centers, and intelligence groups, and works with lawmakers and regulators in all 50 states to enhance efforts 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.
He advised homeowners to be wary of high-pressure sales tactics, seek multiple bids, get a signed contract, beware of upfront payments, and trust their instincts.
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