After The Winds, Don't Get Blown Away By Fraud
http://www.iinc.org/articles/427/1/After-The-Winds-Dont-Get-Blown-Away-By-Fraud/Page1.html
Published on 12/2/2011
As the damage from this week’s windstorms is tallied, a new peril may threaten homeowners -- con artists posing as contractors and public adjusters with offers of cheap labor and a quick damage fix.
But for homeowners seeking repairs or needing help filing insurance claims, enlisting unlicensed help can be an costly mistake.
Beware Unlicensed Contractors & Repair Scams
Related Articles
Got Wind Damage?
Telephone Numbers for Windstorm Insurance Claims
As the damage from this week’s windstorms is tallied, a new peril may threaten homeowners -- con artists posing as contractors and public adjusters with offers of cheap labor and a quick damage fix.
But for homeowners seeking repairs or needing help filing insurance claims, enlisting unlicensed help can be an costly mistake.
In the worst cases, shady contractors may disappear with the homeowner’s down payment or provide unsafe repairs. Unlicensed public adjusters can also promise more than the insurance policies cover. A promise from anyone for more money or services than what is specified in a policy could be an invitation to commit insurance fraud, a felony that costs consumers up to $40 billion a year, according to FBI statistics.
“Be aware that if you sign a contract with an outside claims intermediary, your insurer is precluded from working with you directly,” said Candysse Miller, executive director of the Insurance Information Network of California. In addition, insurers often do not pay intermediaries’ fees, which become the responsibility of the policyholder.
A call to your insurance agent or company can determine if your insurance covers your wind damage. Your insurer may also recommend the appropriate course of action, as well as licensed contractors with a proven track recrd of disaster repair.
California law requires contractors who perform work worth more than $500 be licensed and bonded, and provide customers with proper recourse if they are dissatisfied. Public adjusters must also be licensed by the state and adhere to rules established by the California Department of Insurance.
Homeowners seeking repairs can check a contractor’s license status and verify qualifications online at the Contractors State License Board or by calling (800) 321-CSLB. The agency recommends that consumers pay no more than 10 percent of the contract price or $1,000 as a down payment and receive a written contract verifying payment schedule and completion date.
Public adjusters’ licenses can also be checked by calling the Department of Insurance at (800) 927-HELP.
IINC is non-profit and non-lobbying trade association dedicated to helping the public understand insurance and manage risk. For more information, please visit the IINC Web site. You can also follow IINC on Twitter at twitter.com/iinc and on Facebook at facebook.com/iinc.org.
ADDITIONAL RESOURCES
California Department of Insurance
Contractors State License Board
As the damage from this week’s windstorms is tallied, a new peril may threaten homeowners -- con artists posing as contractors and public adjusters with offers of cheap labor and a quick damage fix. But for homeowners seeking repairs or needing help filing insurance claims, enlisting unlicensed help can be an costly mistake.
After The Winds, Don't Get Blown Away By Fraud
Beware Unlicensed Contractors & Repair ScamsRelated Articles
Got Wind Damage?
Telephone Numbers for Windstorm Insurance Claims
As the damage from this week’s windstorms is tallied, a new peril may threaten homeowners -- con artists posing as contractors and public adjusters with offers of cheap labor and a quick damage fix.
But for homeowners seeking repairs or needing help filing insurance claims, enlisting unlicensed help can be an costly mistake.
In the worst cases, shady contractors may disappear with the homeowner’s down payment or provide unsafe repairs. Unlicensed public adjusters can also promise more than the insurance policies cover. A promise from anyone for more money or services than what is specified in a policy could be an invitation to commit insurance fraud, a felony that costs consumers up to $40 billion a year, according to FBI statistics.
“Be aware that if you sign a contract with an outside claims intermediary, your insurer is precluded from working with you directly,” said Candysse Miller, executive director of the Insurance Information Network of California. In addition, insurers often do not pay intermediaries’ fees, which become the responsibility of the policyholder.
A call to your insurance agent or company can determine if your insurance covers your wind damage. Your insurer may also recommend the appropriate course of action, as well as licensed contractors with a proven track recrd of disaster repair.
California law requires contractors who perform work worth more than $500 be licensed and bonded, and provide customers with proper recourse if they are dissatisfied. Public adjusters must also be licensed by the state and adhere to rules established by the California Department of Insurance.
Homeowners seeking repairs can check a contractor’s license status and verify qualifications online at the Contractors State License Board or by calling (800) 321-CSLB. The agency recommends that consumers pay no more than 10 percent of the contract price or $1,000 as a down payment and receive a written contract verifying payment schedule and completion date.
Public adjusters’ licenses can also be checked by calling the Department of Insurance at (800) 927-HELP.
IINC is non-profit and non-lobbying trade association dedicated to helping the public understand insurance and manage risk. For more information, please visit the IINC Web site. You can also follow IINC on Twitter at twitter.com/iinc and on Facebook at facebook.com/iinc.org.
ADDITIONAL RESOURCES
California Department of Insurance
Contractors State License Board