National Insurance Crime Bureau
Severe flooding in Central Texas has resulted in significant loss of life and extensive damage to homes, schools, and businesses, prompting the National Insurance Crime Bureau (NICB) to issue a warning about potential contractor fraud in the affected areas. As the search and rescue operations continue, NICB is urging residents to be vigilant against unscrupulous contractors who may exploit the disaster to take advantage of vulnerable individuals.
In light of the catastrophic events that unfolded in the region last week, NICB agents are collaborating with local, state, and federal law enforcement agencies, along with member insurance companies, to support recovery efforts and prevent fraud. As first responder activities start to wind down, NICB plans to deploy agents to Central Texas to assist in identifying and combating fraudulent schemes as the rebuilding process begins.
Concerns Over Fraudulent Contractors
Naimbi Tillman, NICB’s Southwest Regional Director, expressed deep sympathy for those impacted by the flooding, stating, “Our hearts continue to be with the residents of Central Texas as they mourn the loss of friends and loved ones and continue to search for those missing after the severe weather.” Tillman emphasized the need for caution, highlighting that some contractors may offer assistance with the intention of defrauding homeowners. “Knowing the warning signs of potentially untrustworthy contractors can protect vulnerable citizens and deter this type of crime,” he added.
The NICB warns that fraudulent schemes are likely to emerge, targeting homeowners with promises of debris removal, home repairs, or even medical services. Residents are advised to conduct thorough research before hiring any contractors. Checking credentials and verifying references can help safeguard against potential scams.
Identifying Warning Signs
Common red flags include high-pressure sales tactics, particularly those involving door-to-door solicitation. Contractors who push residents to sign contracts immediately, often leaving blank spaces for details, or who demand upfront payments should be approached with caution. NICB also cautions against contractors requiring an Assignment of Benefits agreement, which transfers insurance rights to them.
For those affected by the flooding, NICB provides a free downloadable contractor checklist available on their website. Additional best practices include:
- Understanding what is covered in your insurance policy before a disaster.
- Obtaining a list of reputable contractors from your insurance carrier.
- Being cautious of door-to-door contractors and pressure tactics after a disaster.
- Verifying contractors through your insurance carrier or the Better Business Bureau.
- Requesting multiple bids for work and avoiding cash payments upfront.
- Never accepting verbal agreements without written documentation.
Residents are encouraged to contact NICB’s hotline at 1-800-TEL-NICB to report any suspected fraud and to seek assistance in navigating the recovery process. More resources and information on hiring trustworthy contractors can be found on the NICB website.
Based in Oak Brook, Illinois, the NICB is a not-for-profit organization dedicated to combating and preventing insurance crime through intelligence, analytics, operations, education, and advocacy. Supported by over 1,200 property and casualty insurance companies, NICB plays a vital role in protecting consumers and ensuring the integrity of the insurance industry.
