Contractor Fraud Bills Clear Three State Legislatures
Jeff Jeffrey |
Three state legislatures have passed legislation targeting unscrupulous contractors who take advantage of homeowners who have suffered damage from a significant storm.
The bills passed in
"The problem with this kind of fraud is that it creates a serious customer service problem for insurers," Passmore said. "While the insurance companies are going out and inspecting these roofs that have no damage, they aren't helping other companies that may have significant damage to their own. That costs time and money that would be better spent elsewhere."
Passmore said it can also cause problems for the insurance company in situations where the homeowner has entered into a contract with the roofing contractor but the homeowner's insurance claim is denied. "That leaves the customer very upset because they have to pay for a roof they didn't need in the first place," Passmore said.
Last year, the
In 2010, the top five writers of homeowners multiperil policies in
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Copyright: | (c) 2012 A.M. Best Company, Inc. |
Source: | A.M. Best Company, Inc. |
Wordcount: | 406 |
Allstate Files Suit to Recover $2 Million From Alleged Fraud Scam
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