Triple-I and NICB Join Up to Help Consumers Fight Contractor Fraud
May 20 2024 - 12:03PM
Business Wire
The Insurance Information Institute (Triple-I) and the National
Insurance Crime Bureau (NICB) are marking this week (May 20-24,
2024) as Contractor Fraud Awareness Week (CFAW) to highlight how
homeowners can protect themselves from dishonest contractors.
“For many homeowners who are victims of contractor fraud, it has
either forced delays in rebuilding or has completely halted the
rebuilding process after a disaster,” said Sean Kevelighan, CEO of
the Triple-I.
“The Insurance Information Institute is proud to join forces
with the National Insurance Crime Bureau to educate homeowners
about the common signs of fraud and to offer steps homeowners can
take to ensure they are hiring a reputable contractor,” Kevelighan
added.
“Contractor fraud costs hardworking Americans billions of
dollars every year,” said David J. Glawe, president and CEO of
NICB. “After a natural disaster, fraudulent contractors work to
exploit the vulnerabilities of unsuspecting homeowners with the
promise of affordable renovations, repairs, or construction
projects that leave behind a trail of broken promises, shoddy
workmanship, and depleted savings.”
Contractor fraud scams often start with an unsolicited visit
from a contractor who claims to want to help victims rebuild.
Dishonest contractors also frequently use flyers to advertise their
services. However, homeowners can check up on a contractor’s
credentials and reputation in multiple ways. Triple-I provides
these basic guidelines that can help prevent consumers from being
defrauded after a disaster:
- Ask to see the salesperson’s driver’s license and write down
the license number and their vehicle’s license plate number.
- Investigate the track record of any roofer, builder or
contractor you consider hiring. Look for professionals that have a
solid reputation in your community. Use a local, licensed, bonded
and insured contractor. You can call your local Better Business
Bureau office for help. Also, get references and never give anyone
a deposit until after you have thoroughly researched their
background.
- Ask to see the contractor’s proof of liability and workers’
compensation insurance certificate.
- Contact your local contractor license board before signing any
contract or advancing any large payments for work.
- Don't be rushed into signing a contract with any company.
Instead, collect business cards and get more than one written
estimate for the proposed job. Get everything in writing including
cost, work to be done, time schedules, guarantees, payment
schedules and other expectations which should be detailed.
- Never sign a contract with blanks; unacceptable terms can be
added later by unscrupulous contractors.
- Beware of building contractors that encourage you to spend a
lot of money on temporary repairs. Payments for temporary repairs
are covered as part of the total settlement. If you pay a
contractor a large sum for a temporary repair job, you may not have
enough money for permanent repairs. In many cases, you should be
able to make the temporary repairs yourself. Ask your insurance
agent. And remember to keep receipts so you can be reimbursed by
your insure.
- Never pay a contractor in full or sign a completion certificate
until the work is finished and be sure reconstruction is up to
current code.
If you believe you have been approached by an unlicensed or
unscrupulous contractor, or have been encouraged to fabricate an
insurance claim, contact your insurance company, the local police
or the National Insurance Crime Bureau hotline at 800-TEL-NICB
(800-835-6422). You may also text your information to TIP411,
keyword “FRAUD” and remain anonymous if you so desire.
RELATED LINKS
Video: Contractor Fraud Awareness Tips
Facts and Statistics: Insurance Fraud
About the Insurance Information Institute
With more than 50 insurance company members — including
regional, super-regional, national, and global carriers — the
Insurance Information Institute (Triple-I) is the #1 online source
for insurance information in the U.S. The organization’s website,
blog and social media channels offer a wealth of data-driven
research studies, white papers, videos, articles, infographics and
other resources solely dedicated to explaining insurance and
enhancing knowledge.
Unlike other sources, Triple-I’s sole focus is creating and
disseminating information to empower consumers. It neither lobbies
nor sells insurance. Triple-I offers objective, fact-based
information about insurance – information that is rooted in
economic and actuarial soundness. Triple-I is affiliated with The
Institutes Risk and Insurance Knowledge Group.
About the National Insurance Crime Bureau
The National Insurance Crime Bureau (NICB) partners with
insurance companies, consumers and law enforcement to combat
insurance fraud and theft through the combination of intelligence
and analytics, investigations, and learning development.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240520218158/en/
Media Contacts: Insurance Information Institute
Loretta Worters 917-923-8245 lorettaw@iii.org
National Insurance Crime Bureau Joe Brenckle
jbrenckle@nicb.org
Chris Stroisch cstroisch@nicb.org