Event Also Raises Awareness of Contractor Fraud

MOBILE, Ala., May 14, 2024 /PRNewswire/ -- Every year, hurricanes, tornadoes, and other catastrophic events leave millions of Americans struggling to recover and rebuild their lives. Unfortunately, these events also provide an opening for dishonest contractors looking to take advantage of homeowners. Last year was a historic year for billion-dollar weather and climate disasters in the U.S. with 28 separate events costing at least $1 billion and totaling more than $93 billion in catastrophe losses. Upwards of 10 percent or $9.3 billion is lost to post-disaster fraud, which not only impacts individuals, but also impacts insurance premiums throughout the industry.

To help combat this growing nationwide problem, the Alabama Department of Insurance is joining with the National Insurance Crime Bureau (NICB) to raise awareness with an event in the Mobile, Alabama metro area on Saturday, May 18, 2024 as part of Contractor Fraud Awareness Week (CFAW). The event will focus on preparing for a natural disaster and how homeowners and business owners can identify the signs of contractor fraud and how to avoid becoming a victim of deceptive contractors after a natural disaster.

MAY 18TH CONTRACTOR FRAUD EXPO

• WHAT:  Are you Prepared? How to avoid becoming a victim of contractor fraud
  • Attendees can:

• • • Meet with Alabama First Responders and learn more about preparing for a catastrophic event
    • Learn how to identify a legitimate contractor from a potential fraudster
    • Learn how to identify and safely escape a rip current
    • Learn about upcoming severe weather season from National Weather Service
    • Learn about Gulf climate and resilience projects from Alabama Sea Grant Consortium
    • Touch and interact with first responder and military vehicles from Alabama National Guard, MedStar EMS, Daphne Fire Department, Daphne Police Department and Daphne Search and Rescue
• WHEN: Saturday, May 18, 2024 - 10am – 2pm
  
  
• WHERE: Home Depot, Jubilee Mall Shopping Center, 7100 US-90, Daphne, AL 36526
  
  
• WHO: National Insurance Crime Bureau, Alabama Emergency Management Agency, Home Depot, South Alabama Regional Planning Commission Area Agency on Aging, Mobile and Baldwin County EMAs, National Weather Service, Sea Grant Consortium Alabama National Guard/State Military Office, Alabama Department of Insurance (State Fire Marshal, Fraud Division, Consumer Services)

MORE INFO: https://www.nicb.org/news/events/are-you-prepared-contractor-fraud-expo

NICB partners with government agencies, as well as its members, to educate homeowners and businesses on how to avoid becoming a victim of insurance fraud. It sponsors public awareness events across the country and works with local law enforcement agencies to help catch fraudsters taking advantage of hardworking Americans. NICB also participates in federal, state and local task forces, fusion centers, and intelligence groups to combat insurance fraud, while working strategically with lawmakers and regulators in all 50 states to boost efforts by insurers and law enforcement to fight insurance fraud crime trends.

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 800.TEL.NICB (800.835.6422).

About the National Insurance Crime Bureau: Headquartered in Oak Brook, Ill., the National Insurance Crime Bureau (NICB) is the nation's leading not-for-profit organization exclusively dedicated to combatting and preventing insurance crime through Intelligence, Analytics, and Operations; Education and Crime Prevention; and Strategy, Policy, and Advocacy. NICB is supported by more than 1,200 property and casualty insurance companies and self-insured organizations. To learn more, visit NICB.org.

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SOURCE National Insurance Crime Bureau