New COVID-19: NICB Resource Center with the latest virus information and what's happening in our states from a fraud perspective.

Texas Storm Victims Warned About Post-Disaster Scams


DES PLAINES, Ill., Jan. 7, 2016 -  As Texas recovers from recent storms, the National Insurance Crime Bureau (NICB) is working with law enforcement agencies, the Texas Department of Insurance and insurance companies to warn victims about post-disaster rebuilding scams.


Tornado damage in Rowlett, TX


After a disaster, contractors will often go door-to-door in neighborhoods that have sustained damage to offer clean up and/or construction and repair services.  Most of these people are reputable, but many are not.  The dishonest ones may execute schemes to defraud innocent victims.  One common scheme is to pocket the payment and never show up for the job, or never complete a job that was started.  Another scheme is to use inferior materials and perform shoddy work that is not up to code in order to pocket more profit.

Almost all of these scams are unsolicited-they begin with a visit from a contractor who seeks to help victims rebuild.  That is why we say, "If you didn't request it, reject it."  If you think you might have damage from a storm, call your insurance company first.  Your insurance company will honor its policy so there is no need to rush into an agreement with a contractor who solicits your repair work-especially when you did not request it.


Unlike other states, Texas does not require a license for a roofing contractor nor is one required for solicitation. Local jurisdictions, however, may impose certain requirements before contractors can solicit work within their boundaries. One example is the City of Garland that requires anyone soliciting for the purpose of selling or offering to sell goods or services, must first retain a solicitation permit through the Garland Police Department.

NICB was on site in the disaster area this week as law enforcement and Department of Insurance officials were on the lookout for potential fraud.

"Fraud is an unfortunate reality in post-disaster environments," said NICB President and CEO Wehrle. "As the recovery in Texas gets underway, fraudsters are already converging on the affected areas in order to scam disaster victims out of their money while promising to do repairs. The last thing victims of disaster need is to be victimized again."

NICB suggests you consider these tips before hiring a contractor:

· 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

· 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

Another potential scam arising from the storms are flood vehicle resales. Buying a flood vehicle is not illegal, but misrepresenting a flood-damaged vehicle as one that is not could be a crime exposing the seller to potential criminal charges. More importantly, unknowingly buying a flood-damaged vehicle may put you and your family in physical and financial danger. A vehicle's electronic systems are often destroyed from prolonged exposure to water rendering many of its safety features inoperable.

In these situations, efforts to recover your money from the seller are seldom successful since these scam artists rarely use legitimate identifying and contact information. In many cases, buyers are left with a useless vehicle and a loan that they still must repay.

For free consumer access to the vehicle salvage records of participating NICB member insurance companies who collectively provide 88 percent of the auto insurance in force today, access NICB's VINCheck.

Consumer Resources

· For a free brochure with tips to avoid post-disaster fraud, click here.

· For useful checklists, including how to spot flood and salvage vehicle scams and post-disaster contractor repair schemes, click here.

Anyone with information concerning insurance fraud or vehicle theft can report it anonymously by calling toll-free 800-TEL-NICB (800-835-6422) or by submitting a form on our website.

Anyone with information concerning insurance fraud or vehicle theft can report it anonymously by calling toll-free 800.TEL.NICB (800.835.6422) or submitting a form on our website.

About the National Insurance Crime Bureau: Headquartered in Des Plaines, Ill., the NICB is the nation's leading not-for-profit organization exclusively dedicated to preventing, detecting and defeating insurance fraud and vehicle theft through data analytics, investigations, learning and development, government affairs and public affairs. The NICB is supported by more than 1,400 property and casualty insurance companies and self-insured organizations. NICB member companies wrote over $525 billion in insurance premiums in 2019, or more than 82% of the nation's property-casualty insurance. That includes more than 95% ($241 billion) of the nation's personal auto insurance. To learn more visit