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

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

FOR IMMEDIATE RELEASE: May 18, 2026

(LANSING, MICH) May 18-22 is 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 damaging storms. 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. 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.”

“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.”

Common signs that a contractor or other service provider may be trying 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 beforehiring a contractor to understand your coverage and potential out-of-pocket costs for repairs.
• Get multiple written estimates for the repairs and compare bids.
• 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 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) 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), 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 these crimes. Suspected insurance fraud can be reported to the DIFS FIU safely, easily 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.

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. 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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