Insurance
Fraud Potential Follows In Wake of Hurricane IsabelRICHMOND,
Va. – Hurricane Isabel is more than a memory,
having left behind millions of dollars worth of damage
to Virginians’ personal property. In the aftermath
of this devastating storm, consumers need to be aware
of another potential disaster – insurance fraud.
Virginians pay between $200 and $1000 per year in additional
premiums due to all types of fraudulent insurance claims,
according to the Coalition Against Insurance Fraud.
On a national level the effects of insurance fraud are
estimated to cost more than $85 billion a year.
Here are some tips to help protect yourself from insurance
fraud and unscrupulous contractors and ensure your insurance
claim is accurate.
- Become familiar
with your homeowner’s, renter’s or automobile
insurance policies to understand what is covered and
to determine your deductible.
- Work with
your insurance agent or adjuster. Be wary of unscrupulous
contractors who promise to take care of your deductible
and handle all of your insurance paperwork.
- Make sure
the contractor is licensed in Virginia or registered
with the Federal Emergency Management Agency (FEMA).
If you have any doubts about a contractor, check with
your local Better Business Bureau, the Virginia Department
of Professional and Occupational Regulation at (804)
367-8511 or www.state.va.us/dpor, or the Virginia
Office of Consumer Affairs’ state-wide toll-free
consumer hotline at 1-800-552-9963; in the Richmond
area, call 786-2042.
- Never pay
in cash for work done, and never pay in full before
the work is completed.
- Claim only
those property damages that are a result of the storm
-- don't include previous damage from an unrelated
incident as part of your storm damage.
- Don't inflate
the value of your claim to cover your deductible or
past premiums.
- Don't fall
victim to the mindset of "everyone's doing it"
and submit a false or inflated claim thinking you’ll
make a little extra money as well.
If you have
knowledge of a fraudulent insurance scheme or suspect
you may have been the victim of insurance fraud, report
the activity to Virginia State Police Insurance Fraud
Division on the insurance fraud hotline at 1-877-62FRAUD
(1-877-623-7238) or visit www.stampoutfraud.com. You
may also be eligible to receive a reward of up to $25,000.
The Virginia State Police is committed to “Stamp
Out” insurance fraud occurring in the Commonwealth.