NICB Alerts Residents of Potential Fraud Following Severe Flooding in Eastern Kentucky and Tennessee Valley

NICB Issues Fraud Warning in Eastern Kentucky and Tennessee Valley

The recent unprecedented rainfall has caused devastating flooding in the Eastern Kentucky and Tennessee Valley region, leading to significant property damage estimated in the tens of millions of dollars. In response, the National Insurance Crime Bureau (NICB) is issuing an urgent warning to residents and business owners about the potential for fraudulent contractors to exploit this disaster.

Last week, extensive flooding resulted in emergency responses from various agencies. With the disaster recovery efforts underway, NICB agents are collaborating closely with local, state, and federal law enforcement, along with member insurance companies, to combat fraud and assist communities in their recovery process. NICB's president and CEO, David J. Glawe, emphasized the importance of vigilance, stating, “While most contractors are honest and play a vital role in rebuilding communities after catastrophic events, there are always a few who seek to exploit homeowners in distress.”

Understanding the Risks

As the rebuilding efforts ramp up, the NICB is particularly concerned about potential scams targeting vulnerable homeowners. The types of fraud may include companies or individuals promising to provide services such as tree and debris removal, home reconstruction, or even medical aid in disaster-affected areas.

Glawe advises residents to exercise caution and follow a set of recommended practices when engaging contractors. It is crucial to know the warning signs of potential fraud, which may manifest through high-pressure sales tactics, door-to-door solicitations, or unsolicited phone calls.

Best Practices When Hiring a Contractor

The NICB outlines several guidelines that homeowners should consider to protect themselves from fraud:

1. Immediate Communication with Insurance: After assessing property damage, it is critical to contact your insurance company as soon as possible to understand your situation and obligations.
2. Obtain Multiple Estimates: Before settling on a contractor, gather several bids to compare services and costs. Always verify the contractor’s identity and credibility. Checking references and conducting background checks can provide additional assurance.
3. Thorough Contract Review: Scrutinize any contracts before signing. Avoid contractors who push for immediate decisions or who leave blank spaces in agreements that could be exploited later. Ensure all terms, costs, and timelines are explicitly laid out in writing.
4. Report Suspicious Activity: Should anything feel amiss, immediately report it to local authorities or your insurance provider. It is also wise to avoid sharing personal information over the phone unless certain of the caller's identity.

Conclusion

As the Eastern Kentucky and Tennessee Valley region grapple with the aftermath of the flooding, the NICB's warning serves as a critical reminder for homeowners. By staying vigilant and adhering to best practices for contractor hiring, residents can significantly reduce their risk of becoming victims of fraud. Further information and resources can be accessed on NICB's official website or by contacting their hotline at 1-800-TEL-NICB.

The NICB, residing in Oak Brook, Illinois, is the leading non-profit association dedicated to preventing insurance crimes through a multifaceted approach involving intelligence, analytics, and community education. With over 1,200 member organizations, they are at the forefront of fighting insurance fraud across the nation.