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TWIA is committed to preventing and reporting insurance fraud as part of our mission to ensure coastal property owners have access to essential wind and hail insurance coverage. The FBI estimates that non-healthcare insurance fraud costs around $40 billion a year for insurance companies, resulting in a $400-$700 yearly increase in premiums for the average American family.

What Is Insurance Fraud?

  • Insurance fraud is the intentional use of deception to receive money or other benefits in an insurance transaction.
  • Insurance fraud may involve providing false information on an insurance application, exaggerating a claim for damages, or billing for services never rendered.
  • Insurance fraud can be committed by adjusters, contractors, and policyholders.

After a disaster, stay alert to the potential for fraud during the recovery process.

Watch out for unsolicited contractors looking to prey on storm victims.

Those contractors may pocket your payment without completing the job, offer to illegally waive your insurance deductible, use inferior materials, or perform subpar work not up to code.

How Can I Protect Myself from Fraud?

  • Work with only insured contractors.
  • Get more than one estimate.
  • Don’t feel pressured into signing a contract right away.
  • Get everything related to your repairs in writing.
  • Ask to see the driver license of the contractor and note their information. Write down the license plate numbers of work vehicles.
  • Avoid signing a contract with blank sections, and do not sign a certificate of completion until all of the repair work is done to your satisfaction.

What If I Suspect Fraud?

There are resources you can access to help identify or report insurance fraud. If you suspect fraudulent activity related to TWIA or TFPA claims, call the Veracity Research Company (VRC) Fraud Hotline at (800) 625-0425 or visit

For More Information

Learn more ways to protect yourself from fraud at the Texas Department of Insurance’s website at

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