Iowa Department of Insurance and Financial Services warns of storm-related scams

In the wake of recent severe storms and flooding in Chickasaw, Winnebago and Winneshiek Counties, the Iowa Department of Insurance and Financial Services is urging Iowans to be on the lookout for scams and contractors who may be looking to exploit storm relief efforts. State officials said scammers often take advantage of communities during times of need, using deceptive tactics to steal people's hard-earned money following disasters.

Contractors, public adjusters and insurance claims

What is a contractor? — Following damage or a loss, property owners may need to hire a contractor to build or repair a home. Contractors are hired at a cost to build or make repairs following an insurance claim. All contractors who earn over $2,000 a year for their services must be registered with the Iowa Department of Inspections, Appeals and Licensing.

Can a contractor assess your property? — Property owners are encouraged to talk with their insurance agent and allow their insurance company to assess the damage following a claim. Obtain two estimates, if possible, for the damage from registered contractors. A contractor cannot investigate, appraise, evaluate, give advice, prepare a claim, negotiate, advocate on behalf of or assist their customer in the adjustment of a claim. This includes advertising themselves to be a "claim specialists or analysts," claiming that the contractor can "deal with insurance companies" or in any way increase the claim settlement amount for the policyholder. Consumers have the right to consult a public adjuster to negotiate with their insurance company.

Common disaster-related scams

Contractor fraud — Following storms, disingenuous contractors known as storm chasers may offer to repair a home and disappear without doing or completing the work after accepting payment. State officials stressed homeowners should never pay large sums up front and should always verify a contractor's credentials and registration with the Iowa Department of Inspections, Appeals and Licensing. If a property owner is suspicious of a storm chaser scam, a report may be made to the Iowa Attorney General's Office at (888) 777-4590. If a property owners suspects a contractor is acting as an unlicensed public adjuster, contact the Iowa Insurance Division.

Insurance scams — Be on the lookout for scammers claiming to assist with or expedite insurance claims. Only deal with an insurance company directly. To report insurance scams, contact the Iowa Insurance Division at (877) 955-1212 or (515) 654-6600.

FEMA scams — Scamme rs may try to impersonate FEMA representatives to obtain personal information. If a FEMA representative comes to your home following a disaster event, check their official FEMA identification. Remember, FEMA will never ask for your financial information or charge for assistance.

For more information on post-disaster resources and how to protect oneself from scammers, visit iid.iowa.gov/post-disaster-resources.

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