On the Lookout For Fraud in Tornado Damaged Areas

The Dallas Morning News recently went out with the Texas Department of Insurance and witnessed firsthand their fight against roofing scams after the Dec 26th tornadoes hit the Dallas area.

Roofers

Workers are removed from a roof in Rowlett, TX for not having a permit.

As we reported yesterday, 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.

Last year the TDI received 15,000 complaints regarding insurance fraud.

The best part is that roofers are not the sharpest shingles in the box. They don’t realize as they are being interrogated by TDI police that the state insurance department has no regulatory authority over them.

Here’s a video of the disaster area as law enforcement and TDI officials were on the lookout for potential fraud.