Don’t Get Scammed: Avoiding Fraud After a Natural Disaster National Insurance Crime Bureau, President & CEO David Glawe, partners with YourUpdate TV on nationwide media tour to discuss how to avoid home repair fraud after a natural disaster
With hurricane season and wildfire season on the horizon in many parts of the country, damage and loss to homes in affected areas are unavoidable.
The National Insurance Crime Bureau is warning those living in areas that could suffer from a natural disaster to not only be prepared for the disaster but to be aware of the potential for fraudulent contractors and vendors taking advantage of victims in its aftermath.
According to the NICB, up to 10 percent of disaster claims paid can be attributable to fraud. In 2021, insurers paid $92 billion in catastrophe claims, up to $9.2 billion attributable to fraud.
Oftentimes, these deceitful actors will target neighborhoods affected by disasters and make an unsolicited stop at your home. They’ll take your money, often overcharging, and do shoddy or no work at all, promising that your insurance company will pay for it all.
Insurance fraud related to natural disasters can add millions of dollars paid out by insurers, which results in higher premiums for policyholders. In some cases, individual homeowners are on the hook for up to tens-of-thousands of dollars they may not be able to recover.
On Tuesday, May 24th, NICB President & CEO David Glawe conducted a nationwide media tour with TV stations across the country to discuss how to avoid home repair fraud after a natural disaster and many other consumer friendly topics.
During the media tour interviews David Glawe discussed:
· The steps homeowners can and should take prior to a natural disaster and how preparation can help reduce chances of becoming a victim of fraud
· The kind of fraud that takes place following disasters while victims are trying to put their homes and lives back together
· The best practices for disaster victims when hiring contractors or vendors and tips for avoiding dishonest contractors
· What the federal response will be following a natural disaster and what it entails for both recovery and helping to alleviate fraud problems
· The most common methods fraudulent contractors try to scam disaster victims
· The resources available to help homeowners and other disaster victims avoid potential fraudulent actors or report fraud when they encounter it