CONTRACTOR FRAUD AWARENESS WEEK: DIFS SHARES TIPS TO HELP MICHIGANDERS AVOID FRAUDULENT STORM REPAIR CONTRACTOR SCHEMES
The following information was released by the Michigan State Government:
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"Contractor fraud exploits families and business owners at some of the most vulnerable times in their lives. Recognizing the signs of unscrupulous contractors and making informed decisions are key to keeping our communities safe from falling victim to fraud," said NICB President and CEO
Common signs that a contractor or other service provider may be trying to take advantage of disaster victims include:
Rushing homeowners into signing a contract for their services.
Stating they work for "the government" or specific insurers "all the time."
Asking for payment in advance, in cash, or using a peer-to-peer mobile payment app.
Refusing to provide the homeowner with their licensure information or other forms of identification.
To protect against contractor fraud and ensure compliance with insurance policy terms, always:
Contact your insurer beforehiring a contractor to understand your coverage and potential out-of-pocket costs for repairs.
Get multiple written estimates for the repairs and compare bids.
Check the service provider's credentials, including licenses, references, and insurance.
Be present in the home when damage is inspected or repaired.
Make sure the contract states estimated construction schedules and prices for labor and materials.
Get the contract in writing with no blanks on the form that could be filled in later without your knowledge.
Remember, insurance claims adjusters work for and are paid by the insurance company and should never ask homeowners for any payment for their services that are covered by their homeowners or renters policy.
Contractor Fraud Awareness Week was developed by the
If you suspect fraud, immediately contact law enforcement, your insurer, the DIFS Fraud Investigation Unit (FIU), or the NICB. The FIU investigates criminal and fraudulent activity related to the insurance and financial markets and works with the Attorney General and law enforcement to prosecute these crimes. Suspected insurance fraud can be reported to the DIFS FIU safely, easily and, in most cases, anonymously by visiting Michigan.gov/ReportFraud2DIFS, or by calling 877-999-6442 Monday through Friday
The mission of the


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