Disaster Insurance Scams in the United States
How scammers target US flood, fire, and storm victims posing as insurers, adjusters, or FEMA-linked contractors after a declared disaster.
Part of: Disaster Insurance Scams
Last reviewed: 13 July 2026
Disaster insurance scams follow hurricanes, wildfires, floods, and tornadoes across the United States, targeting homeowners in the chaotic weeks after a federally declared disaster when insurance claims, FEMA assistance, and rebuilding all move at once. Scammers pose as insurance adjusters, public adjusters, or contractors claiming a relationship with the victim's actual insurer or with FEMA, offering to speed up a payout or handle repairs.
The scam thrives on the genuine confusion of disaster recovery — displaced homeowners, damaged paperwork, and a flood of both real and fake officials moving through affected neighborhoods make it hard for victims to tell a legitimate adjuster from a fraudulent one.
How this scam works on the United States
A person going door-to-door or calling homeowners in a disaster-affected area claims to be an insurance adjuster or a 'public adjuster' who can get a faster, larger payout in exchange for signing over a portion of the claim or paying an upfront fee. Some pose as FEMA representatives asking for personal information or an 'application fee,' even though FEMA disaster assistance is always free to apply for.
Others pair with fraudulent contractors, encouraging the homeowner to sign a contract and an assignment of benefits before any real insurance inspection has occurred, then walk away with a deposit after doing minimal or no repair work. Victims may also be asked to pay an upfront 'processing fee' to a fake claims service unaffiliated with their actual insurer.
Because many real adjusters and contractors are legitimately working these areas at the same time, verifying credentials on the spot is difficult, and scammers rely on the urgency and displacement disaster victims are experiencing.
Common red flags
- Someone going door-to-door or calling claims they can speed up your insurance payout for a fee or a share of the claim
- You're asked to sign an assignment of benefits or contractor agreement before your actual insurer has inspected the damage
- A caller claims to represent FEMA and asks for a fee to apply for disaster assistance
- The adjuster or contractor cannot provide a license number you can verify with your state
- You're pressured to pay a large deposit before any repair work begins
- The person contacts you unsolicited shortly after a declared disaster in your area
How to protect yourself
- Contact your actual insurer directly using the number on your policy to confirm any adjuster's identity before signing anything
- Remember that FEMA disaster assistance applications are always free — never pay a fee to apply
- Verify any public adjuster or contractor's license through your state's licensing board before agreeing to work
- Never sign an assignment of benefits without understanding what rights you're giving up
- Get multiple written estimates before agreeing to repair work, and avoid large upfront deposits
- Photograph all damage yourself before any contractor or adjuster visits, in case documentation is later disputed
How to report it
- Report suspected fraud to your state department of insurance, which licenses and investigates adjusters and contractors
- Report to the National Center for Disaster Fraud at 1-866-720-5721 or via the NCDF website
- Report contractor fraud to your state's contractor licensing board
- File a complaint with the FTC at ReportFraud.ftc.gov
Frequently asked questions
Does FEMA ever charge a fee to apply for disaster assistance?
No. FEMA disaster assistance applications are always free. Anyone asking for a fee to help you apply for or process FEMA assistance is not a genuine FEMA representative.
How do I verify a public adjuster or contractor after a disaster?
Check their license number against your state's licensing board database, and independently verify through your own insurer whether they're actually working on your claim, rather than trusting credentials shown on the spot.
What is an assignment of benefits and why is it risky?
It's a document that transfers your right to collect insurance payment directly to the contractor or adjuster, meaning they interact with your insurer on your behalf and can be paid directly. Signing one without understanding it can leave you with limited control over your own claim.
Can I get money back if I paid a deposit to a scam contractor after a disaster?
It depends on the payment method and how quickly it's reported — contact your card issuer or bank about a dispute, and report the contractor to your state licensing board and the National Center for Disaster Fraud.
How can I tell a real adjuster from my insurer apart from a scammer?
Call your insurer directly using the number on your policy or their official website to confirm the name and details of the adjuster assigned to your claim before letting anyone inspect your property or sign documents.