NICB Warns Illinois Residents of Storm-Chasing Contractor Fraud After 140 Tornadoes, a Derecho and Flooding

A run of severe weather in Illinois has prompted a fraud warning from the insurance industry's crime-fighting body. On June 18, 2026, the National Insurance Crime Bureau (NICB) urged Illinois residents and business owners to watch for fraudulent contractors in communities hit by storms. The bureau said the state had seen, over about two weeks, a derecho that caused widespread wind damage across northern Illinois, a tornado outbreak that damaged homes and businesses, and heavy rain that raised flooding concerns in parts of the Chicago metropolitan area. This article is based on the NICB's alert. An earlier version of this article included a figure for annual US severe convective storm losses that we could not verify against the alert, and it has been removed. This is general information, not legal or insurance advice.

How unusual is the weather? The NICB reported that Illinois had recorded 140 tornadoes so far in 2026, compared with an average of 54 in a year, and said this made it the state with the most tornadoes in the country. That is more than two and a half times the annual average, reached before midsummer. Later reporting by Live Insurance News, published in October 2026, cited a preliminary count of about 192 tornadoes for the year, a record for the state, and said State Farm claims data showed Illinois homeowner claims running well above the ten-year average. We have not independently confirmed those later figures, which may change as the National Weather Service completes its surveys, so treat them as preliminary.

Why does fraud follow storms? NICB President and CEO David J. Glawe said that this is when home and business owners must be most vigilant, noting that fraudsters exploit people who are eager to start recovering. After a storm, demand for roofers, tree services and repairers outstrips supply. People want a tarp on the roof, a window boarded up or a tree removed immediately. That urgency, combined with confusion about insurance claims, gives dishonest operators room to work. They may take a deposit and never return, do poor work that fails later, or inflate a claim by adding damage that did not occur.

What are the warning signs? The NICB lists several red flags. Be wary of solicitors who appear immediately after a storm, particularly those who knock on doors, call or approach online. Be cautious of anyone who claims to be affiliated with your insurer without proof, who offers a free inspection as a hook, who demands cash payment, or who pressures you to sign at once to get a special deal. Do not sign a contract with blank spaces. Do not pay the full price before work begins. Be suspicious of any offer to waive your deductible, because an insurer will not expect you to pay your deductible up front or over the phone, and a contractor who promises to absorb it may be inflating the claim to cover the cost, which can amount to insurance fraud. Finally, be careful with an Assignment of Benefits, a document that transfers your rights under your insurance policy to the contractor. Read it carefully, because it can affect your control of the claim.

What should homeowners do first? The NICB advises contacting your insurer first if you suspect storm damage. Read all documents before sending them to your insurer. Do not let a contractor interpret your policy or discourage you from calling your insurer. Do not give personal information to callers until they confirm a claim number. Where emergency repairs are needed to prevent further damage, such as covering a hole in the roof, check your policy and keep receipts and photographs, because most policies require reasonable steps to protect the property and may reimburse them.

How should you choose a contractor? Get multiple estimates and avoid rushing. Ask for references and research the company. The NICB suggests recording the salesperson's driver's licence and vehicle plate numbers, and being wary of out-of-state contractor licences or vehicle registrations. Reject unsolicited offers. Get everything in writing, including the cost, scope of work, timelines, guarantees and payment schedule. Never sign a completion certificate until the work is actually finished and you are satisfied with it, because insurers and lenders may treat that certificate as proof that the job is done. A free downloadable checklist is available on the NICB website.

What does the Illinois state guidance add? The Live Insurance News report notes that the Illinois Department of Insurance, like most state regulators, advises homeowners to verify a contractor's licence independently, to contact the insurer first so an adjuster can document damage, and then to get two to three estimates from licensed contractors. It also refers to the Illinois Home Repair and Remodeling Act, which it says requires written contracts for repair work over $1,000. Readers should confirm these requirements with the department and the statute, as we have relied on a secondary report for them.

How can fraud be reported? Suspected insurance fraud can be reported to the NICB by calling 800-835-6422 or by submitting a form on the bureau's website. The NICB says it works with more than 1,200 property-casualty insurers and other member organisations.

What are the wider implications? Repeated severe convective storms put pressure on household budgets, insurers and local building trades. Fraud adds to the cost, because dishonest claims and shoddy repairs raise losses that are ultimately reflected in premiums across a market. For consumers, the most protective habits are simple: call your insurer before you sign anything, document the damage, get several quotes, and take your time. For communities, local officials and consumer groups often reinforce these messages after a disaster.

This article summarises an industry alert and secondary reports and is not legal or insurance advice. Contact your insurer and the Illinois Department of Insurance for advice on your own claim.