OK. And of course, David joins us now,
David, Contractor of fraud, something we definitely see here in
the Bay Area.
Why do you think it's becoming more prevalent?
Last year in 2023, we had over
$93 billion
in insurance cream losses from contractor,
I'm sorry, from catastrophic events.
We believe approximately $10 billion
of those losses is associated with contractor fraud or fraudulent
related matters and the frequency is up.
In 1980s we had about
80. Every 80 days we had a billion dollar loss
from a catastrophic event.
Last year we had a $1 billion loss Every 12
days.
We just have more frequencies.
And these are opportunistic criminals,
criminal enterprises that are driven by money.
And there's a lot of money in these communities after
a catastrophic event.
OK, you probably heard me gasp there.
I apologize. But every 12 days,
man, that is startling. OK,
So what time out, What is happening?
What is the NICB doing to stop some of this
contractor fraud?
So
the National Insurance Crime Bureau,
we have agents and analysts in all 50 States and
United States territories.
We have a large footprint in Florida.
We partner directly with Florida law enforcement to investigate these
criminal enterprises operating in the state of Florida.
As an example, after Hurricane Ian,
we are on the ground.
Immediately following the event, we identified over 30 fraudulent contractors
operating in the state,
passed that information immediately to law enforcement,
and we work to help them write those criminal complaints
to prosecute these individuals that are praying on the victims
of Florida.
Well, you know what, Right now we're talking about,
you know, the beginning of hurricane season down here and
how we can prepare anything homeowners can do before a
natural disaster,
perhaps to prevent them when a situation may arise so
that they don't get taken advantage of.
Yeah, I appreciate that question.
As, as you know that we've been in an inflationary
environment over the last four years and your home costs
more and to replace your property,
be it your furniture, your television,
your computer, your goods, you need to make sure your
policy's up to date for replacement value.
So contact your insurance agent.
You need to do that today because you're not going
to be covered after the fact.
Make sure your policy's up to date.
Make sure you have the replacement value in there.
And also, where are your documents stored?
If they're not stored electronically with your insurance carrier,
make sure they're stored in a dry place that won't
be impacted by a storm,
like a safety deposit box at a bank.
Good, good tips. And again,
that's things we can do before.
What can we be on the lookout after if a
natural disaster does happen,
if a hurricane in our situation does happen,
we're already stressed. What are some things we can look
for?
Maybe some warning signs, perhaps.
Florida is one of our best partners.
We work with Governor DeSantis and CFO Jimmy Petronas.
This is the second year in row they've signed a
proclamation recognizing Contractor Fraud Awareness Week.
That's really important. We work on community outrage.
So something some things to think about
after an event. Work with your insurance carrier to get
a vetted list of contractors and get three bids.
If somebody knocks on your door,
calls you on the phone,
sends you an e-mail, randomly turn them away,
work with your carrier, get 3 vetted
contractors and go slow. The key thing is to go
slow.
Don't pay with cash on a down payment.
All contracts require a small down payment,
but anything more than 5%
you need to take a look at it.
Always pay with a check so we can we can
document and follow where the money goes if it is
taken from you.
All great tips. We're of course sharing the website on
the bottom of the screen and
icb.org. Again, David, I'm so glad I got to check
in with you such important information.
Thanks for your time. Thank you for having me.