BISMARCK, N.D. – Following recent summer storms, Insurance Commissioner Jon Godfread urges residents to know the signs of contractor scams and fraud and stay vigilant of bad actors who may seek to take advantage of vulnerable property owners.
Consumers have reported contractors offering to pay or cover the cost of the homeowners’ insurance deductibles in exchange for contracting for repairs. Under North Dakota law, this practice is illegal.
Common signs of contractor fraud include:
“Property owners dealing with damage from hail, windstorms and tornadoes should beware of people seeking to take advantage of North Dakotans. These bad actors know that property owners likely have an insurance policy that will pay to have damages repaired. Knowing the signs can prevent fraud from happening,” said Godfread.
To prevent being a victim of contractor fraud, consumers should get at least three written estimates from separate contractors, work with their insurance company and never sign an electronic document without reading it in full. Consumers should also verify the credentials of any contractor or adjustor before agreeing to anything. North Dakota law requires anyone acting as a public adjuster to be licensed with the North Dakota Insurance Department. Valid adjusters will have this license on them.
U.S. insurance companies paid more than $92 billion in catastrophe losses in 2023. Of that, 10 percent was lost to fraud, according to the National Insurance Crime Bureau.
Residents who suspect signs of contractor fraud should contact the North Dakota Attorney General’s Consumer Protection Division at (701)328-3404.