20 States Join NICB to Combat Contractor Fraud

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 1-800-TEL-NICB (800.835.6422).