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Be on the Lookout for Scams After a Disaster

Mother Nature served up her fair share of storms across the country in 2011. The National Weather Service (NWS)1 estimates there have been approximately 1,665 tornadoes as of the end of August 2011. The overall yearly average number of tornadoes for the past decade, according to the NWS, is 1,274.

Wildfires also have the power to ravage communities. According to the National Climatic Data Center,2 from January through November 8.5 million acres burned across the United States. These large fires can quickly destroy homes and businesses.

Natural disasters cause devastating losses of life and property for those in their path. For people who wish to rebuild after a disaster, it's important to work with honest professionals who use quality materials for clean-up, repair and construction. Unfortunately, some schemes are designed to take advantage of those who have lost all they have to a disaster.

The National Insurance Crime Bureau (NICB)3 offers the following tips to people who are looking to hire a contractor to rebuild after a storm:

• Get more than one estimate.
• Get everything in writing. Cost, work to be done, time schedules, guarantees, payment schedules and other expectations should be detailed.
• Demand references and check them out.
• Ask to see the salesperson’s driver’s license and write down the license number and their vehicle’s license plate number.
• Request proof of adequate property, liability, and worker’s compensation insurance.
• Never sign a contract with blanks; unacceptable terms can be added later.
• Never pay a contractor in full or sign a completion certificate until the work is finished, and ensure reconstruction is up to current code.
• Make sure you review and understand all documents sent to your insurance carrier.
• Never let a contractor pressure you into hiring them.
• Never let a contractor interpret the insurance policy language.
• Never let a contractor discourage you from contacting your insurance company.

If you believe you have been approached by an unlicensed or unscrupulous contractor, or have been encouraged to   fabricate an insurance claim, contact your insurance company or call the NICB hotline at 1-800-TEL-NICB (1-800-835- 6422). You may also text your information to TIP411, keyword “FRAUD” and remain anonymous if you so desire.

When you've been through a storm, the last thing you need is to be taken advantage of as you begin to rebuild. If you have questions about your insurance claim, contact your agent, who will be happy to be a resource for you through the rebuilding process.

1http://www.noaanews.noaa.gov/2011_tornado_information.html
2
http://www.ncdc.noaa.gov/sotc/fire/
3https://www.nicb.org/newsroom/news-releases/post-disaster-consumer-rip-offs

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