Contractor Fraud Awareness Week runs during the week of May 18 to 22 in Michigan.

LANSING — The Michigan Department of Insurance and Financial Services (DIFS) is sharing tips to help consumers spot and avoid fraudulent contractor schemes during Contractor Fraud Awareness Week, May 18 to 22.

Following severe weather incidents, fraudsters claiming to be adjusters, contractors and other service providers often call or go door-to-door claiming to offer services, like debris cleanup or home repairs.

In these scams, the work may never be completed, may be done using poor‒quality materials or workmanship or victims may be significantly overcharged, costing them thousands of dollars.

“Michigan has experienced widespread severe weather events recently, and Contractor Fraud Awareness Week is an important reminder to watch for criminals attempting to take advantage of the aftermath,” said DIFS Director Anita Fox. “Recovering from severe weather can be stressful but knowing what to look out for can help homeowners avoid further hardship.”

Common signs that a contractor or service provider may be attempting to take advantage of disaster victims include:

– Pressuring homeowners to sign contracts immediately.

– Claiming they work for “the government” or with specific insurers “all the time.”

– Requesting payment in advance, cash-only payments or payment through peer-to-peer mobile apps.

– Refusing to provide proof of licensing, identification or other forms of identification.

Fox added, “Contractors and other service providers should never ask for cash in advance or pressure you to quickly sign a contract for repairs. You should always verify a contractor’s credentials and contact your insurer before hiring anyone. If you suspect fraud, immediately contact local law enforcement, your insurer, the DIFS Fraud Investigation Unit, or the National Insurance Crime Bureau.”

To help protect against contractor fraud and ensure compliance with insurance policy terms:

– Contact the insurance company before hiring a contractor to understand your coverage and potential out-of-pocket costs for repairs.

– Obtain multiple written estimates and compare pricing, timelines and scope of work.

– Verify the contractor’s credentials, including licenses, references and proof of insurance.

– Be present in the home whenever damage inspections or repair work are performed.

– Ensure the contract clearly outlines estimated construction timelines and labor and material costs.

– Obtain the contract in writing with no blanks on the form that could be filled in later.

DIFS reminds residents that insurance claims adjusters work for and are paid by the insurance company and should never ask homeowners for any payment for their services that are covered by their homeowners or renters policy.

Contractor Fraud Awareness Week was developed by the National Insurance Crime Bureau (NICB) to raise public awareness about contractor fraud and highlight the risks disaster victims can face from contractors and vendors seeking to exploit homeowners and communities in the aftermath of catastrophes.

“Contractor fraud exploits families and business owners at some of the most vulnerable times in their lives. Recognizing the signs of unscrupulous contractors and making informed decisions are key to keeping our communities safe from falling victim to fraud,” said NICB President and CEO David J. Glawe. “NICB encourages Michigan residents to take proactive steps to protect themselves, including researching contractors, verifying licensing and insurance information and securing a written contract before any work begins.”

If you suspect fraud, immediately contact law enforcement, the insurer, the DIFS Fraud Investigation Unit (FIU) or the NICB. The FIU investigates criminal and fraudulent activity related to the insurance and financial markets and works with the attorney general and law enforcement to prosecute crimes.

Suspected insurance fraud can be reported to the DIFS FIU safely and, in most cases, anonymously by visiting Michigan.gov/ReportFraud2DIFS, or by calling 877-999-6442 Monday through Friday 8 a.m. to 5 p.m. The NICB can be reached at 1-800-TEL-NICB.

For resources and helpful steps for victims of contractor fraud, visit NICB.org/CFAW.

The Michigan Department of Insurance and Financial Services works to ensure residents have access to safe and secure insurance and financial services. The department also provides consumer protection, outreach and financial literacy and education services throughout the state.

Translation services are available for individuals with limited English proficiency who contact the department.

For more information, visit Michigan.gov/DIFS or follow the department on Facebook, X or LinkedIn.

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Sophie Vogelmann can be reached at 906-786-2021 or svogelmann@dailypress.net.