Disclaimer: This Inside South Florida segment is sponsored by National Insurance Crime Bureau. All opinions and views are of the advertiser and does not reflect the same of WSFL-TV.
David J. Glawe, President and CEO of the National Insurance Crime Bureau (NICB), joined Inside South Florida to provide crucial insights on how to avoid home repair fraud following a natural disaster. With the increasing frequency of catastrophic events, it’s more important than ever to be vigilant and prepared.
With $93 billion in losses last year due to natural disasters, fraudulent contractors are increasingly targeting vulnerable homeowners. Glawe explains that about 10% of that money, or approximately $10 billion, was targeted by fraudulent contractors. The influx of money into disaster-hit areas makes them prime targets for criminal enterprises seeking to exploit those in desperate need of repairs.
The NICB has been instrumental in fighting fraud for over a century. Glawe highlights that NICB agents and analysts work closely with Florida State law enforcement. They have partnered with Governor DeSantis and CFO Jimmy Patronis to recognize Contractor Fraud Awareness Week, with proclamations signed in both 2023 and 2024. These efforts aim to raise awareness and prevent fraud before it happens.
Glawe emphasizes the importance of preparation. Homeowners should ensure their insurance policies are up to date, especially given recent inflation. Property values have increased, and outdated policies may not provide adequate coverage. It’s crucial to contact your insurance carrier to verify that your policy includes replacement cost value. Additionally, make sure your insurance policy documents are stored safely and are accessible after a disaster. This can mean keeping them in a dry place, a fire safe, or electronically with your insurance carrier.
To avoid falling victim to fraudulent contractors, homeowners should take a cautious and methodical approach. Glawe advises the following steps:
- Slow Down: Avoid making hasty decisions when hiring contractors.
- Get Multiple Bids: Work with your insurance carrier to obtain at least three bids from different contractors.
- Avoid Door-to-Door Solicitations: Be wary of contractors who knock on your door, call you, or send unsolicited emails.
- Vet Contractors: Use your insurance carrier’s vetted list of contractors and go through a thorough vetting process.
- Trust Your Instincts: If something feels off or suspicious, walk away and start over with your insurance carrier’s guidance.
NICB offers several resources to help homeowners avoid fraud and report it if encountered. Their website, nicb.org, features a Contractor Fraud Awareness Week toolkit that includes crime prevention tips and signs of contractor fraud. Homeowners can also file fraud complaints through the website, which NICB will then pass on to law enforcement for further investigation.
By following these guidelines and utilizing available resources, homeowners can better protect themselves from fraudulent contractors and ensure their recovery process after a disaster is as smooth and secure as possible.
