By Loretta Worters, Vice President – Media Relations, Triple-I
Each main catastrophe exposes the identical actuality: restoration shouldn’t be solely about repairing bodily injury, but additionally about navigating a fancy and infrequently fast-moving market of contractors, distributors, and repair suppliers.
In that setting, most contractors are authentic professionals serving to communities rebuild. However alongside them, a smaller group of unhealthy actors repeatedly takes benefit of urgency, confusion, and emotional stress to take advantage of householders.
Contractor fraud shouldn’t be a brand new phenomenon. What makes it particularly regarding is its predictability. After storms, floods, wildfires, and different large-scale occasions, contractor fraud tends to comply with the identical sample, focusing on the acquainted vulnerabilities within the restoration course of.
Throughout Contractor Fraud Consciousness Week (Could 18–22, 2026), the Insurance coverage Info Institute (Triple-I) and the Nationwide Insurance coverage Crime Bureau (NICB) are highlighting this recurring and financially damaging type of fraud and the function it performs in complicating catastrophe restoration.
At a time when extreme convective storms, hurricanes, wildfires, and different catastrophes proceed to generate important property losses, fraud turns into an added layer of disruption. It will increase prices, slows restoration, and undermines belief within the rebuilding course of itself.
Fraud exploits the urgency of restoration
The situations after a catastrophe are uniquely favorable to fraud. Householders are sometimes displaced, coping with insurance coverage claims, and attempting to revive primary stability as shortly as attainable.
Unscrupulous contractors depend on that urgency. They could seem unsolicited at a house owner’s door, distribute flyers in affected neighborhoods, or promote fast restore providers on-line. Their presents are sometimes framed as time-sensitive alternatives requiring quick motion.
The outcome will be rushed selections, restricted vetting, and agreements signed beneath duress relatively than knowledgeable evaluate. In line with NICB, reported circumstances of contractor fraud have elevated 38% up to now three years.
“Contractor fraud stays probably the most widespread schemes reported after main storms and catastrophes,” mentioned David J. Glawe, president and CEO of NICB. “These unhealthy actors prey on households when they’re most susceptible, usually abandoning incomplete work, poor workmanship and monetary hardship.”
Why slowing down issues
One of the vital vital protections towards contractor fraud can also be probably the most troublesome to use in actual time: resisting urgency.
After a loss, the intuition to revive normalcy shortly is totally comprehensible. However pace with out verification can create long-term penalties which can be much more expensive than a short delay in decision-making.
“After a catastrophe, householders are sometimes beneath great stress to make repairs shortly, which might make them susceptible to dishonest contractors,” mentioned Sean Kevelighan, CEO of Triple-I. “Taking time to confirm credentials, examine estimates and thoroughly evaluate contracts can assist householders keep away from expensive scams throughout the restoration course of.”
Essentially, fraud prevention on this area is about course of self-discipline: verifying licensing and insurance coverage, acquiring a number of estimates, documenting phrases clearly, and guaranteeing no funds are made beneath stress or earlier than work is accomplished.
Strengthening business and regulation enforcement response
Whereas shopper consciousness is crucial, contractor fraud can also be a system-level problem that requires coordinated business and regulation enforcement response.
NICB is increasing its efforts this yr with 5 days of coaching alternatives for insurance coverage carriers and regulation enforcement. These periods deal with figuring out and investigating patterns of fraud in areas comparable to hail injury, water mitigation, mildew, and basic property claims.
The group can also be working with state policymakers to help official recognition of Contractor Fraud Consciousness Week. Over the previous 5 years, 35 states and Puerto Rico have formally acknowledged the initiative, reflecting rising recognition of the problem on the state degree.
In parallel, NICB is broadening public outreach by a nationwide media tour throughout greater than 20 tv markets, a public service announcement marketing campaign reaching greater than 100 markets nationwide, and ongoing social media engagement designed to enhance shopper consciousness and prevention.
A shared duty in resilient restoration
Catastrophe restoration will depend on greater than insurance coverage claims and building capability. It will depend on belief, data, and knowledgeable decision-making on the level of restore.
Fraud undermines that system and will increase prices for customers, slows rebuilding, and diverts assets away from authentic restoration efforts.
Addressing fraud requires sustained consideration from insurers, regulation enforcement, policymakers, and customers themselves. Whereas no single intervention eliminates the chance, consciousness and due diligence stay the best instruments out there to householders.
Customers who suspect contractor fraud or insurance coverage fraud ought to contact their insurance coverage firm, native regulation enforcement, or the Nationwide Insurance coverage Crime Bureau at 800-TEL-NICB (800-835-6422). Suggestions will also be submitted anonymously by texting TIP411 with key phrase “FRAUD.”
Extra data and assets can be found at NICB’s Contractor Fraud Consciousness Week useful resource middle: https://www.nicb.org/CFAW