By Loretta Worters, Vice President – Media Relations, Triple-I
Every major disaster exposes the same reality: recovery is not only about repairing physical damage, but also about navigating a complex and often fast-moving marketplace of contractors, vendors, and service providers.
In that environment, most contractors are legitimate professionals helping communities rebuild. But alongside them, a smaller group of bad actors repeatedly takes advantage of urgency, confusion, and emotional stress to exploit homeowners.
Contractor fraud is not a new phenomenon. What makes it especially concerning is its predictability. After storms, floods, wildfires, and other large-scale events, contractor fraud tends to follow the same pattern, targeting the familiar vulnerabilities in the recovery process.
During Contractor Fraud Awareness Week (May 18–22, 2026), the Insurance Information Institute (Triple-I) and the National Insurance Crime Bureau (NICB) are highlighting this recurring and financially damaging form of fraud and the role it plays in complicating disaster recovery.
At a time when severe convective storms, hurricanes, wildfires, and other catastrophes continue to generate significant property losses, fraud becomes an added layer of disruption. It increases costs, slows recovery, and undermines trust in the rebuilding process itself.
Fraud exploits the urgency of recovery
The conditions after a disaster are uniquely favorable to fraud. Homeowners are often displaced, dealing with insurance claims, and trying to restore basic stability as quickly as possible.
Unscrupulous contractors rely on that urgency. They may appear unsolicited at a homeowner’s door, distribute flyers in affected neighborhoods, or advertise rapid repair services online. Their offers are often framed as time-sensitive opportunities requiring immediate action.
The result can be rushed decisions, limited vetting, and agreements signed under duress rather than informed review. According to NICB, reported cases of contractor fraud have increased 38% in the past three years.
“Contractor fraud remains one of the most common schemes reported after major storms and catastrophes,” said David J. Glawe, president and CEO of NICB. “These bad actors prey on families when they are most vulnerable, often leaving behind incomplete work, poor workmanship and financial hardship.”
Why slowing down matters
One of the most important protections against contractor fraud is also one of the most difficult to apply in real time: resisting urgency.
After a loss, the instinct to restore normalcy quickly is entirely understandable. But speed without verification can create long-term consequences that are far more costly than a brief delay in decision-making.
“After a disaster, homeowners are often under tremendous pressure to make repairs quickly, which can make them vulnerable to dishonest contractors,” said Sean Kevelighan, CEO of Triple-I. “Taking time to verify credentials, compare estimates and carefully review contracts can help homeowners avoid costly scams during the recovery process.”
Fundamentally, fraud prevention in this space is about process discipline: verifying licensing and insurance, obtaining multiple estimates, documenting terms clearly, and ensuring no payments are made under pressure or before work is completed.
Strengthening industry and law enforcement response
While consumer awareness is essential, contractor fraud is also a system-level challenge that requires coordinated industry and law enforcement response.
NICB is expanding its efforts this year with five days of training opportunities for insurance carriers and law enforcement. These sessions focus on identifying and investigating patterns of fraud in areas such as hail damage, water mitigation, mold, and general property claims.
The organization is also working with state policymakers to support official recognition of Contractor Fraud Awareness Week. Over the past five years, 35 states and Puerto Rico have formally recognized the initiative, reflecting growing recognition of the issue at the state level.
In parallel, NICB is broadening public outreach through a national media tour across more than 20 television markets, a public service announcement campaign reaching more than 100 markets nationwide, and ongoing social media engagement designed to improve consumer awareness and prevention.
A shared responsibility in resilient recovery
Disaster recovery depends on more than insurance claims and construction capacity. It depends on trust, information, and informed decision-making at the point of repair.
Fraud undermines that system and increases costs for consumers, slows rebuilding, and diverts resources away from legitimate recovery efforts.
Addressing fraud requires sustained attention from insurers, law enforcement, policymakers, and consumers themselves. While no single intervention eliminates the risk, awareness and due diligence remain the most effective tools available to homeowners.
Consumers who suspect contractor fraud or insurance fraud should contact their insurance company, local law enforcement, or the National Insurance Crime Bureau at 800-TEL-NICB (800-835-6422). Tips can also be submitted anonymously by texting TIP411 with keyword “FRAUD.”
More information and resources are available at NICB’s Contractor Fraud Awareness Week resource center: https://www.nicb.org/CFAW