NICB in the News: Staged Crashes, Mystery Devices and Hail Damage

WINK NEWS Fraud could be behind a recent surge in auto insurance rates.

Rates are up 21.4 percent since 2015, according to Florida Office of Insurance Regulation data. Read the story here.


KCAL9 – Police Say Car Thieves Targeting Vehicles With Keyless Entry

Police say criminals can use key fobs to disarm cars with the convenient entry option. Now they’re recommending car owners use The Club, which locks onto the steering wheel. Read the story here.


Insurance Business – How bad is your state for hail?

New data from the National Insurance Crime Bureau has listed hail as a top culprit for damaging motor vehicles. Read the story here.

 

Hailstorms Left Their Mark in 2016

DES PLAINES, Ill. — Everything is big in Texas, including hailstorms. The National Insurance Crime Bureau (NICB) said today that insurance claims for hail damage in Texas last year exceeded the previous two years combined.

Hail damage fluctuates year-to-year, but 2016 was a particularly devastating year across the country. An analysis of insurance claims from the Insurance Services Office (ISO) ClaimSearch database showed that after decreasing by 21 percent from 2014 to 2015, the number of hail claims nationwide jumped 48 percent to more than 965,000 in 2016.

Texas totaled more than four times as many hail claims as the second leading state, Colorado, and had 39 percent of all the claims filed last year.

San Antonio’s devastating hailstorms in 2016 resulted in 68,778 claims with Colorado Springs reporting 33,595.

Across the nation, most hail claims, 55 percent, were for home damage with personal auto damage representing 32 percent of all hail claims.

The report is available here. Download an infographic here.


The NICB consistently warns storm victims to be on the lookout for fraudulent roofers and contractors following a disaster.

Almost all of these scams are unsolicited—they begin with a visit from a contractor who seeks to help victims rebuild. That is why NICB recommends that “if you didn’t request it, reject it.” Before hiring any contractor, call your insurance company. 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.

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.

    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.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.

Hail Bombs, Flooding and Stolen Vehicles Highlight NICB’s Fall Newscast

In this edition of NICB News we focus on the devastating floods in Louisiana, a major hailstorm in Colorado and check in at this year’s IASIU conference in Las Vegas.

To view more episodes of NICB News click here.

When Hail Hits Storm Chasers Arrive

The recent hail storm that damaged thousands of homes and vehicles in the Colorado Springs area has once again attracted an onslaught of “storm chasers” – unscrupulous contractors going door-to-door to try to get victims to let them repair their roofs or other hail damage.

The National Insurance Crime Bureau (NICB) says Colorado was second only to Texas in the number of hail damage insurance claims from 2013 to 2015 (Hail Claims).

NICB warns that the thousands of homeowner damage claims and millions of dollars that are being paid out by their insurance companies have resulted in a dramatic increase in the number of contractors claiming to be “licensed” and going door-to-door, without being invited, to solicit business. All too frequently, victims will allow them to go up on their roofs to inspect for damage, without knowing if the company has a valid license or has proper business insurance. Homeowners may find themselves liable if someone is injured on the roof without proper workers compensation or business insurance.

In some cases, the contractors will take the victim’s money, make limited repairs or no repairs at all, and disappear – leaving the property owner victimized a second time.

Working with a coalition of insurance industry, consumer, contractor industry and government groups, NICB is urging consumers to know their rights under legislation passed in the state in 2014 to protect them from high pressure tactics. Those include the right to know the following:

  • Scope of work and materials to be provided.
  • Cost for same based on damages known at the time the contract is entered into.
  • Approximate dates of service.
  • Roofing contractor’s contact information.
  • Identification of contractor’s surety and liability coverage insurer and their contact information.
  • Contractor’s policy regarding cancellation of contract and refund of any deposit including a rescission clause allowing the property owner to rescind the contract for roofing services and obtain a full refund of any deposit within 72 hours after entering the contract.
  • A statement that if the property owner plans to pay for the roofing services through an insurance claim, the contractor cannot pay, waive or rebate the homeowner’s insurance deductible in part or in whole.
  • A statement that the contractor shall hold in trust any payment from the property owner until the contractor has delivered roofing materials to the job site or has performed a majority of the roofing work on the property.
NICB reminds victims to do their homework and resist the pressure from unwelcomed contractors. Remember, if you didn’t request it, reject it! For more information on the Colorado campaign on social media search #NoRoofScams.

Hail Claims Fluctuate Over Past Three Years

Tell a claims adjuster in Texas today that hail damage claims decreased over the past three years and they might consider you crazy. Dealing with thousands of claims from recent record storms in the Dallas and San Antonio areas, insurers and their customers know how Mother Nature can be peaceful one day and in a fury the next.

A hail damaged windshield from an April 2016 storm in Wylie, TX.

A hail damaged windshield from an April 2016 storm in Wylie, TX.

The National Insurance Crime Bureau (NICB) today released the most recent three-year analysis of insurance claims associated with hail storms in the United States. In 2013, there were 720,473 hail damage claims filed. That number increased in 2014 to 824,325 then dropped in 2015 to 572,182 claims–an overall decrease of 21percent from 2013 to 2015.

The nation experienced 10 major hail-producing storms during this period according to the National Oceanic and Atmospheric Administration (NOAA), each of which caused over $1 billion in property damage. While experts debate why these storms occur, no one argues with their effects—extensive property damage and many times, loss of life.

According to data from Verisk’s A-PLUSTM property database, U.S. insurers paid almost nine million claims for hail losses, totaling more than $54 billion from 2000 through 2013.

In recent years, the costs of these hail-related claims has dramatically increased. The average claim severity during the period 2008-2013 was 65 percent higher than it was from 2000 through 2007.

Weather-related property damage can be as minimal as a few broken shingles to total destruction of buildings. This report focuses on insurance claims resulting only from hail damage.

A total of 2,116,980 hail loss claims were processed from January 1, 2013 through December 31, 2015. During this period, the top five states generating hail damage claims were Texas (394,572), Colorado (182,591), Nebraska (148,346), Kansas (127,963) and Illinois (120,513). The top five months, on average, when the most hail loss claims were reported during this period were May (165,087), April (149,040), June (129,085), March (61,072) and July (55,650).

Download the complete NICB hail loss claims report here.

Enduring a hail storm is challenging enough, but property owners must also be aware that in the wake of any severe storm, they may be visited by unethical contractors posing as sincere repairmen. Often, these “storm chasers” will descend on disaster areas and go door to door offering their repair services. Although most are honest, some are not. If the dishonest ones get your money in advance of performing any work, you’ll never see them or your money again.

That’s why NICB reminds consumers to always check first with their insurance company before signing any documents presented by a contractor whom you did not request to appear. It’s why we say, “If you didn’t request it, reject it.”

NICB has produced a new public service announcements on contractor fraud that can be seen here and here.

The following tips are also helpful:

  • Get more than one estimate
  • Don’t be pushed into signing a contract right away
  • Get everything in writing
  • Require references and check them out
  • Ask to see the contractor’s driver’s license and write down the number and the license plate on his or her vehicle.

More consumer protection information is available in our library of brochures.

Fraud Files: Severe Storms Slam the South

Enduring a hailstorm is challenging enough, but property owners must also understand that in the wake of a severe storm, they may be visited by unethical contractors posing as sincere repairmen. Often, these characters will descend on disaster areas and go door to door offering their repair services. Although most are honest, some are not. If the dishonest ones get your money in advance of performing any work, you’ll never see them or your money again.

NICB urges storm victims to work with their insurance company and to be careful in selecting a contractor to do repairs. Do not allow someone to force you into signing a contract or paying up front for work or supplies.

More consumer protection information is available here.

Hail Storm Slams Northern Texas

A storm rolled into Northern Texas Monday night and produced a destructive hail storm. The most significant damage occurred in Wylie, Texas near Dallas. As you can see below many homes, as well as vehicles, were damaged in this incident.

WylieHail1

Becoming a victim of a hail storm may be impossible to avoid. But you can avoid being victimized by dishonest contractors who often go door to door in damaged neighborhoods offering repair services. While many contractors are honest and reputable, others are not. Educate yourself against unscrupulous vendors. When contractors offer you their services, consult this checklist before becoming a customer.

  • Work with only licensed and insured contractors.
  • Get more than one estimate. Don’t be pushed into signing a contract right away.
  • Get everything in writing. Cost, work to be completed, time schedule, guarantees, payment schedule and other expectations should be detailed.
  • Require references, and check them out.
  • Ask to see the person’s driver’s license, and write it down. Also, get the vehicle’s license plate number.
  • Never sign a contract with blanks. Fraudulent contractors may enter unacceptable terms later.
  • Never pay a contractor in full or sign a completion certificate until the work is completed.
  • Make sure you review and understand all documents sent to your insurance carrier
    WylieHail2