Workshop on Avoiding Contractor/Insurance Fraud

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By: Lori Buhring

The State Auditor and the Property Casualty Insurers Association of America hosted a workshop today on the prevention of hail fraud. The workshop is designed to educate consumers and insurance agents about contractor and insurance fraud following hail storms.

Matt Rosendale, the Insurance Commissioner and State Auditor, explained one of the most important things a homeowner should do is make sure they understand what exactly their insurance product is. He stated, “I would advise folks don’t just look at the bottom line at what the monthly cost is for your premium for your homeowner’s policy. Make sure you understand exactly what is covered and how it is covered. Whether that is a flat fee deductible, 3-thousand, 5-thousand dollars, or whether that is a percentage of the value of your entire home. That is really important to understand.”…

The property Casualty Insurers also gave out their fraud prevention tips:

  • Be alert for contractor fraud
  • Verify insurance and licenses
  • Get 3 bids and check references
  • Get a written contract
  • Never pay upfront

Rosendale also said the numbers on the amount of people who experience hail fraud is hard to nail down. He explained to KULR-8 that some people chalk up their fraud experience as just a part of life, so they do not report it to the commissioner’s office.

Read more at KULR