The Insurance Information Institute (Triple-I) and the National Insurance Crime Bureau (NICB) have partnered to combat contractor fraud, a growing issue that has stalled or completely halted the rebuilding process for many homeowners after a disaster. Sean Kevelighan, CEO of Triple-I, emphasized the importance of educating homeowners about common signs of fraud and offering guidance on hiring reputable contractors.

"Contractor fraud costs hardworking Americans billions of dollars every year," said David J. Glawe, president and CEO of NICB. He further explained that fraudulent contractors often exploit unsuspecting homeowners after natural disasters with promises of affordable renovations, repairs, or construction projects that ultimately result in broken promises, substandard workmanship, and depleted savings.

Contractor fraud scams frequently begin with an unsolicited visit from a contractor claiming to help victims rebuild. These dishonest contractors also commonly use flyers to advertise their services. However, homeowners can verify a contractor’s credentials and reputation through various means. Triple-I provides basic guidelines to help prevent consumers from falling victim to fraud after a disaster.

These guidelines include checking the salesperson's driver's license and vehicle's license plate number; investigating the track record of any roofer, builder or contractor being considered for hire; asking for proof of liability and workers' compensation insurance certificate; contacting the local contractor license board before signing any contract or making large payments; not rushing into signing contracts; never signing contracts with blanks; being wary of contractors encouraging expensive temporary repairs; never paying a contractor in full until the work is completed; ensuring reconstruction is up to current code.

If you suspect you have been approached by an unlicensed or dishonest contractor, or if you've been encouraged to fabricate an insurance claim, contact your insurance company, local police or the National Insurance Crime Bureau hotline at 800-TEL-NICB (800-835-6422). You can also text your information to TIP411 using keyword "FRAUD" and choose to remain anonymous if desired.