Louisiana Department of Insurance: Avoid contractor fraud this hurricane season. Here’s how.
BATON ROUGE, La. (BRPROUD) — The Atlantic Hurricane Season will officially start on Saturday, June 1, and Louisiana Department of Insurance Commissioner Tim Temple is urging policyholders to stay alert for contractor fraud during hurricane season.
“Since taking office, I have directed our Office of Insurance Fraud to expand our efforts in identifying and investigating fraud in areas affected by severe weather, hurricanes and other significant loss events,” said Temple. “Insurance fraud inflates premiums for every policyholder.”
According to the National Insurance Crime Bureau, the U.S. saw 28 events in 2023 with total costs of at least $1 billion and totaling more than $93 billion in catastrophe losses. NICB stated that “upwards of 10%, or $9.3 billion, is lost to post-disaster fraud.”
According to a news release, LDI, the Louisiana State Licensing Board for Contractors and NCIB are working together to teach home and business owners how to avoid being victims of misleading contractors.
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“I am committed to investing additional resources as we work closely with homeowners, insurers and local law enforcement to address this problem head-on,” said Temple.
NICB offers the following tips before hiring a contractor:
Contact your insurance company to help assess damages.
Look for a reputable, licensed contractor.
Check for contractor licenses and reviews, and check with insurance for coverage before signing anything.
Don’t just go with the first quote. Get a few to compare. Very low bids might have hidden costs long-term.
Don’t ignore red flags. High-pressure sales tactics and not providing quotes or contracts are things to watch out for.
Get it all in writing. Use a written contract to review the scope and costs of the project before you sign off on the work.
Get legal advice if you need it.
You can also contact LDI at 1-800-259-5300 or go online to file a complaint, ask a question about your policy, or report suspected insurance fraud, according to a news release.
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