#United States #North Carolina #NICB #Contractor Fraud #Tropical Storm

NICB Issues Warning on Contractor Fraud Following Storm

Following the devastation caused by Tropical Storm Chantal, which resulted in severe flooding throughout Central North Carolina, the National Insurance Crime Bureau (NICB) has issued a critical warning to residents and business owners. The storm has led to significant damage to homes, schools, and local businesses, prompting concerns over fraudulent activities by deceptive contractors.

The NICB, a leading non-profit organization dedicated to fighting insurance fraud, is actively collaborating with state and federal law enforcement and insurance companies to combat potential fraud as the recovery efforts gear up. Bill Woolf, NICB's Mid-Atlantic regional director, stated, "North Carolina has declared a state of emergency in the aftermath of Tropical Storm Chantal. As the situation improves, residents need to be aware that some contractors may offer assistance but could vanish after receiving payment. Understanding how to spot red flags can help vulnerable citizens avoid fraud."

Recognizing Fraudulent Contractors

As first responders transition from immediate disaster actions to long-term rebuilding, NICB agents will be deployed to assist in identifying and preventing contractor fraud. The agency warns of various schemes involving individuals or businesses offering debris removal, home repair, and other restoration services. Residents are urged to adopt best practices, including verifying contractor credentials and understanding insurance policy coverage before committing to any services.

Key Warning Signs

Residents should be aware of red flags that indicate a contractor may not be legitimate:

• - High-Pressure Sales Tactics: Be cautious of contractors soliciting services door-to-door or via phone, particularly right after the disaster.
• - Urgent Contract Signing: If a contractor insists on immediate contract signing, especially with blank spaces for key details, it’s a significant red flag.
• - Upfront Payments: Be very wary of contractors that demand full payment upfront or propose an Assignment of Benefits agreement, transferring insurance rights to them.

NICB has made available a downloadable checklist for residents, which can be accessed here. This resource guides homeowners on how to safely navigate the influx of contractors in the aftermath of natural disasters.

Best Practices for Homeowners

• - Before a Disaster: Familiarize yourself with what your insurance policy covers and seek reputable contractors from your insurance carrier's recommended list.
• - After a Disaster: Avoid succumbing to pressure from contractors, especially those soliciting door-to-door. Contact your insurance provider or the Better Business Bureau (BBB) to confirm a contractor's legitimacy. It’s also wise to obtain multiple quotes before finalizing any agreements.
• - Payments: Never pay cash upfront or accept merely verbal agreements – always have a clear, signed contract.

For any suspicious activities or potential fraud, NICB encourages individuals to report to their hotline at 1-800-TEL-NICB or visit NICB.org for further information and resources available for homeowners.

About the National Insurance Crime Bureau

The NICB, based in Oak Brook, Illinois, is the leading not-for-profit organization focused on preventing insurance crime through diverse strategies, including education and advocacy. They are supported by over 1,200 property and casualty insurers and self-insured organizations committed to keeping consumers safe. For additional details, visit NICB.org.