Don’t get duped by insurance scams or you’ll fall victim to Irma again
Homeowners are particularly vulnerable to fast-talking, document-waving con artists who promise to help with repairs, insurance claims and
"Hurricanes bring out a lot of good in people and also the worst in those few bad actors preying on homeowners whose most prized asset has been damaged," said
The state has dispatched three anti-fraud strike teams -- including one in
"To say it frankly,
He and consumer advocates are warning people to be "scam smart," and aware that "if an offer sounds too good to be true, it probably is."
Here's some advice if your home or business was damaged:
-- Notify your insurance company, first and foremost.
-- Beware of imposters claiming to be
"In
-- Beware robocalls from imposters claiming to represent
-- Verify the identity of anyone who says they represent government or relief agencies or insurance companies. They should display their ID badges or provide ID. If you suspect that someone is impersonating official personnel, contact the police.
-- Beware of fly-by-night repair companies or contractors and hire only licensed and reputable professionals. Contractors should not request that you pay more than half the cost at the outset.
"Watch out for a contractor who says, 'Your insurance company sent me, I'm your adjuster, and if you pay
-- If you are considering the assistance of a public insurance adjuster, verify their license. Understand how much they charge and what services are included.
-- Review all documentation you are asked to sign and ask questions. Ask who is responsible for paying -- you or your insurance company.
-- Ensure you understand all paperwork a contractor or roofer or water mitigation firm requests you to sign, most importantly assignment of benefits agreements.
Here's where it gets sticky: The state and consumer advocates warn homeowners against signing assignment of benefits (AOB) agreements because the policyholder is signing over the administration of his or her claim to the contractor, who often inflates the claim and gouges the insurance company, which rejects the claim, which leads to a lawsuit by the contractor in the policyholder's name. The practice has led to an increase in lawsuits and in insurance premiums.
"If you hear the words 'I'll take care of everything and it won't cost you anything, just sign here,' you must run the other way," said
Miller advises policyholders not to fall for the pitch and to call their insurance agent or the state's helpline. The state urges policyholders to file claims directly with their insurance company.
"People you know come to your back door, and people you don't know come to your front door, especially after a hurricane," she said. "Don't answer that knock."
"There is a lot of concern in the wake of Irma that the number of AOB lawsuits will spike," said
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