CALIFORNIA – The National Insurance Crime Bureau (NCIB) urged SoCal wildfire survivors to know the signs of fraudulent contractors and to take the necessary precautions to protect themselves, their property, and their loved ones.
“Residents need to be vigilant and know the signs of a fraudster, so they can avoid being victimized a second time,” said NCIB president and CEO David J. Glawe.
NICB said they deployed agents to the region to work with local, state, and federal law enforcement agencies, as well as insurance companies, to help prevent fraud from occurring.
Require property owners to sign Assignment of Benefits which transfers insurance rights
NICB said they anticipate a variety of fraud schemes to occur involving companies or individuals promoting debris and tree removal, home construction, smoke and ash clean-up, and medical services.
“Fly-by-night haulers can also be a source of fraud and crime as they take short cuts and illegally dispose of debris in the desert or on public lands rather than appropriately dumping it in state-approved landfills,” said the news release.
Homeowners and taxpayers are often left footing the bill for these illegal activities.
According to the bureau, fraudulent contractors target unsuspecting victims with high-pressure sales tactics in person, by phone, and through the internet.
“They often go door-to-door, pressure residents to sign contracts on the spot – often with multiple blank spaces in them – demand payment upfront and even require you to sign an Assignment of Benefits agreement which transfers your insurance rights to them,” said the news release.
Property loss estimates between $35 to $45 billion
CoreLogic announced preliminary residential and commercial loss estimates for the Eaton and Palisades Fires in Los Angeles totaling between $35 to $45 billion.
Residential properties are the majority of the losses.
CoreLogic Insurance Solutions senior director Tom Larsen said between 15,000 and 20,000 homes were sufficiently damaged.
NCIB recommends property owners contact the insurance company immediately about damaged property. In addition, they recommend property owners obtain multiple bids, verify contractors and scrutinize all offers and contracts.
Residents and business owners can find more resources and information on avoiding fraud after a disaster by visiting NICB.org. They are also urged to report any suspicious or fraudulent activity to local law enforcement and the NICB’s hotline at 1-800-TEL-NICB.
 urged SoCal wildfire survivors to know the signs of fraudulent contractors and to take the necessary precautions to protect themselves, their property, and their loved ones.){kind=link}