Triple-I and NICB Warn Homeowners to Watch for Contractor Fraud Following Disasters

Business Wire

MALVERN, Pa.--(BUSINESS WIRE)--
As natural catastrophes and severe weather events continue to expose more homeowners to property damage and recovery challenges, the Insurance Information Institute (Triple-I) and the National Insurance Crime Bureau (NICB) are urging consumers to remain vigilant against contractor fraud during Contractor Fraud Awareness Week, May 18-22, 2026.

Unscrupulous contractors often descend on storm-damaged communities in the days following disasters, offering quick repairs while exploiting homeowners under pressure to rebuild. According to NICB, contractor fraud is systemic involving networks of contractors, public adjusters and attorneys working together to inflate claims. Reported cases of contractor fraud have increased 38% in the past three years.

“Contractor fraud remains one of the most common schemes reported after major storms and catastrophes,” said David J. Glawe, president and CEO, NICB. “These bad actors prey on families when they are most vulnerable, often leaving behind incomplete work, poor workmanship and financial hardship.”

“After a disaster, homeowners are often under tremendous pressure to make repairs quickly, which can make them vulnerable to dishonest contractors,” said Sean Kevelighan, CEO, Triple-I. “Taking time to verify credentials, compare estimates and carefully review contracts can help homeowners avoid costly scams during the recovery process.”

Fraudulent schemes commonly begin with unsolicited visits, flyers, phone calls or online advertisements from individuals claiming to specialize in disaster repair. Homeowners are often pressured to sign contracts immediately or pay large deposits before work begins.

Triple-I and NICB recommend homeowners take the following steps before hiring a contractor:

Ask to see the salesperson’s driver’s license and record the license number and vehicle license plate.
Verify the contractor is licensed, bonded and insured in your state.
Request proof of liability and workers’ compensation insurance.
Check references and review the contractor’s standing with the Better Business Bureau and state licensing board.
Obtain multiple written estimates before selecting a contractor.
Ensure all project details are documented in writing, including scope of work, cost, timeline, materials, warranties and payment schedule.
Never sign a contract with blank spaces.
Avoid paying large upfront deposits.
Never pay in full until the work is completed to your satisfaction and complies with local code requirements.
Be wary of anyone pressuring you to make immediate decisions.

NICB will also offer five days of training opportunities for insurance carriers and law enforcement, with sessions focused on hail damage fraud, water mitigation and mold fraud, and general property fraud. In addition, NICB will represent the insurance industry in statehouses across the country as it advocates for official proclamations recognizing Contractor Fraud Awareness Week in individual states. Over the past five years, 35 states and Puerto Rico have formally recognized CFAW.

NICB will further support public education efforts through a national media tour across more than 20 television markets, a public service announcement campaign reaching more than 100 markets, and ongoing social media outreach designed to raise awareness of contractor fraud and prevention strategies.

Consumers who suspect contractor fraud or insurance fraud should contact their insurer, local law enforcement or report suspicious activity to NICB by calling 800-TEL-NICB (800-835-6422) or texting TIP411 with keyword “FRAUD.”

For additional contractor fraud prevention resources, visit NICB’s Contractor Fraud Awareness Week resource center: https://www.nicb.org/CFAW

About the Insurance Information Institute (Triple-I)

Since 1960, the Insurance Information Institute (Triple-I) has been the trusted voice of risk and insurance, delivering unique, data-driven insights to educate, elevate and connect consumers, industry professionals, policymakers and the media. An affiliate of The Institutes, Triple-I represents a diverse membership accounting for nearly 50% of all U.S. property/casualty premiums written. Our members include mutual and stock companies, personal and commercial lines, primary insurers and reinsurers – serving regional, national and global markets.

About the National Insurance Crime Bureau (NICB)

The National Insurance Crime Bureau (NICB) is the nation’s leading not-for-profit organization dedicated exclusively to preventing and combating insurance fraud and crime through intelligence, analytics, investigations, education, and public awareness.

About The Institutes

The Institutes® are a not-for-profit comprised of diverse affiliates that educate, elevate, and connect people in the essential disciplines of risk management and insurance. Through products and services offered by The Institutes 20 affiliated business units and backed by more than 115 years of experience as a trusted knowledge partner, we empower people and organizations to help those in need with a focus on understanding, predicting, and preventing losses to create a more resilient world. Learn more at Global.TheInstitutes.org.