DES PLAINES, Ill., Feb. 14, 2017 /PRNewswire-USNewswire/ -- As the New Orleans area recovers from the damage caused by a string of powerful tornadoes, the National Insurance Crime Bureau (NICB) reminds consumers that in the weeks ahead, homeowners in disaster areas should be alert to the potential for fraud by unscrupulous contractors and home repair businesses.
After a disaster, contractors often go door-to-door in affected neighborhoods offering clean up and/or construction and repair services. Most are reputable, but many are not. One common scheme is to pocket a down-payment and then never show up for the job, or never complete a job that was started. Another scheme is to use inferior materials and perform shoddy work that is not up to code in order to increase profit.
NICB has personnel in the affected areas assisting our member insurance companies and a video of the area is available here.
"If you didn't request it, reject it"
Almost all of these scams are unsolicited—they begin with a visit from a contractor who seeks to help victims rebuild. That is why NICB recommends that "if you didn't request it, reject it." Before hiring any contractor, call your insurance company. Your insurance company will honor its policy so there is no need to rush into an agreement with a contractor who solicits your repair work—especially when you did not request it.
NICB suggests you consider these tips before hiring a contractor:
- Get more than one estimate.
- Get everything in writing. Cost, work to be done, time schedules, guarantees, payment schedules and other expectations should be detailed.
- Demand references and check them out.
- Ask to see the salesperson's driver's license and write down the license number and their vehicle's license plate number.
- Never sign a contract with blanks; unacceptable terms can be added later.
- Never pay a contractor in full or sign a completion certificate until the work is finished and ensure reconstruction is up to current code.
- Make sure you review and understand all documents sent to your insurance carrier.
- Never let a contractor pressure you into hiring them.
- Never let a contractor interpret the insurance policy language.
- Never let a contractor discourage you from contacting your insurance company.
- For a free brochure with tips to avoid post-disaster fraud, click here.
- For useful checklists, including how to spot flood and salvage vehicle scams and post-disaster contractor repair schemes, click here.
- For free consumer access to the vehicle salvage records of participating NICB member insurance companies who collectively provide 88 percent of the auto insurance in force today, access NICB's VINCheck.
Anyone with information concerning insurance fraud or vehicle theft can report it anonymously by calling toll-free 800-TEL-NICB (800-835-6422), texting keyword "fraud" to TIP411 (847411) or submitting a form on our website. Or, download the NICB Fraud Tips app on your iPhone or Android device.
About the National Insurance Crime Bureau: Headquartered in Des Plaines, Ill., the NICB is the nation's leading not-for-profit organization exclusively dedicated to preventing, detecting and defeating insurance fraud and vehicle theft through data analytics, investigations, training, legislative advocacy and public awareness. The NICB is supported by more than 1,100 property and casualty insurance companies and self-insured organizations. NICB member companies wrote over $413 billion in insurance premiums in 2015, or more than 79 percent of the nation's property/casualty insurance. That includes more than 94 percent ($187 billion) of the nation's personal auto insurance. To learn more visit www.nicb.org.
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SOURCE National Insurance Crime Bureau