What is Contractor Fraud?

Florida homeowners are frequently becoming victims of insurance fraud. In recent years, Florida homeowners have signed contracts or forms that include Assignment of Benefit Agreements. By signing documents with an Assignment of Benefits agreement, you may be allowing the contractor to collect your claim settlement funds directly from your insurance company. Before you sign any contracts with a contractor, be sure to contact your insurance company first.

Important steps you should take

Refrain from signing contracts or forms you do not fully understand. Contact your insurance company if you have any questions about a contract.

As a Security First Insurance policyholder, you have access to our First Choice Repair Network^®. This network of preferred contractors undergoes thorough background checks and vetting to service your needs. If you have any questions, please reach out to your Claims Examiner or Customer Advocate.

Watch Out For Fraud Following A Disaster

Insurance fraud is a big problem in Florida. The time when it is most prevalent is following a disaster. Fraudulent contractors can extend your claim, provide low-quality repairs, and increase costs. Keep these tips in mind.

What Every Floridian Should Know

Watch for Red Flags

Pay attention to signs if the contractor commits all or one of these red-flag items.

The contractor never makes eye contact or takes notes.
Promises guarantees as a sales pitch.
They want to work off-book to get paid cash and save you money.
They offer discounts for getting your friends, family, or neighbors to hire their services.
They offer discounts for using materials left over from another job. The material could be stolen or defective.
If they solicit door-to-door, chances are they could be a fraudulent contractor. It may not be a concern, but be wary if they are not local.
Asks you to sign an Assignment of Benefits agreement. By signing this agreement, you could pay more than what is in your policy. If your repairs are claim related, check with your insurance company first.
The contractor pressures you into a quick hiring decision