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Rocky Mountain Insurance Information
NEWS
6565 South Dayton St. #2400, Greenwood Village, Colorado 80111
Serving Colorado, New Mexico, Utah & Wyoming
Contact: Carole Walker, Executive Director
(303) 790-0216 or 1-800-355-9524
Release Date: Immediately
Topic: Catastrophes
COLORADO WILDFIRES FAN THE FLAMES OF DISASTER FRAUD—DON’T BE A VICTIM TWICE, WARNS THE ROCKY MOUNTAIN INSURANCE INFORMATION ASSOCIATION.
June 17, 2002 –Colorado’s recent wildfires have been in the glare of the national media spotlight, and unfortunately, that means they’ve likely also gotten the attention of scam artists who make a living out of preying on disaster victims. After a natural disaster, professionals often go from door-to-door in damaged neighborhoods, offering clean up or repair services. Many of these business people are reputable. Others are not. The dishonest ones may pocket payment without completing the job or use inferior materials and perform shoddy work not up to code.
"When people are trying to deal with the loss of everything they own, they are more vulnerable to disaster fraud," said Carole Walker, Executive Director, Rocky Mountain Insurance Information Association. "If you educate yourself against dishonest contractors now, you can avoid being victimized twice." For example, a common fraud scheme is for a ’so-called’ contractor to convince a homeowner that a large deposit must be provided before repair work can begin. The job will be started, but not completed. Unfortunately, these con artists are never seen or heard from again.
The Rocky Mountain Insurance Information Association recommends that you use the following checklist before hiring a contractor:
- Get more than one estimate. Don't be pushed into signing a contract right away.
- Get everything in writing. Cost, work to be done, time schedule, guarantees, payment schedule 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 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.
- Insurance coverage may be rendered void if intentional misrepresentation by a policyholder is discovered.
- If you believe you have been approached by an unlicensed contractor or adjuster, or have been encouraged to fabricate an insurance claim, contact your insurance company or call the National Insurance Crime Bureau Hotline at 1-800-TEL-NICB (1-800-835-6422).
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Rocky Mountain Insurance Information Association is a non-profit consumer information organization. Affiliated with the Insurance Information Institute, RMIIA has been serving consumers and the media since 1952.
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