Contractor Fraud Awareness Week: DIFS Shares Tips to Help Michiganders Avoid Fraudulent Storm Repair Contracts

Media Contact: DIFS-press@michigan.gov
Consumer Hotline: 877-999-6442, Michigan.gov/DIFScomplaints

FOR IMMEDIATE RELEASE: May 19, 2025

(LANSING, MICH) May 19-23 is the Fifth Annual Contractor Fraud Awareness Week, and the Michigan Department of Insurance and Financial Services (DIFS) is sharing tips to help consumers spot and avoid fraudulent contractor schemes when seeking help for repairs after severe weather events.

“Spring storms can leave Michiganders assessing damage, cleaning up, and searching for help with repairs,” said DIFS Director Anita Fox. “While many contractors are reputable, these events create opportunities for dishonest contractors to try to cash in by rushing you into contracts for repairs that may never be done or done well. Contractors and vendors should never ask for cash in advance or pressure you into signing repair contracts before obtaining necessary approvals from your insurance company. Always verify contractor credentials and discuss what is covered with your insurance provider before hiring a contractor.”

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

• Rushing homeowners into signing a contract for their services.
• Stating they work for “the government” or specific insurers “all the time.”
• Asking for payment in advance, in cash, or using a peer-to-peer mobile payment app.
• Refusing to provide the homeowner with their licensure information or other forms of identification.

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

• Contact your insurer before hiring a contractor to understand your coverage and potential out-of-pocket costs for repairs.
• Get multiple written estimates for the repairs and compare bids or as directed by your insurer.
• Check the service provider’s credentials, including licenses, references, and insurance.
• Be present in the home when damage is inspected or repaired.
• Make sure the contract states estimated construction schedules and prices for labor and materials.
• Get the contract in writing with no blanks on the form that could be filled in later without your knowledge.
• Remember, insurance adjusters are paid by the insurance company and should never ask homeowners for any payment for their services that are covered by their homeowners or renter’s policy.

Contractor Fraud Awareness Week was developed by the National Insurance Crime Bureau (NICB) for public awareness and to highlight the problem of contractors and vendors taking advantage of disaster victims in the aftermath of catastrophes. For more information, resources, and helpful steps if you fall victim to contractor fraud, visit NICB.org/ContractorFraudWeek.

If you suspect fraud, immediately contact law enforcement, your insurer, the DIFS Fraud Investigation Unit (FIU), and 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 these crimes. Suspected insurance fraud can be reported to DIFS safely, easily and, in most cases, anonymously 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.

The mission of the Michigan Department of Insurance and Financial Services is to ensure access to safe and secure insurance and financial services fundamental for the opportunity, security, and success of Michigan residents, while fostering economic growth and sustainability in both industries. In addition, the Department provides consumer protection, outreach, and financial literacy and education services to Michigan residents. For more information, visit Michigan.gov/DIFS or follow the Department on Facebook, X, or LinkedIn.

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