Paul Adkins Chairman and CEO at Ovation Home Insurance Exchange | Official Website
Fraud in home repairs continues to affect homeowners across Florida, particularly after major storms when urgent repairs are needed. According to Ovation Home Insurance Exchange, these fraudulent activities impact not just individuals but the entire pool of members in a reciprocal insurance exchange. The company emphasizes that fighting fraud is central to its operations.
"Fraud may look like a contractor inflating a bill or walking away from a half-finished job, but the damage runs deeper than a single invoice. It shakes confidence in the recovery process and leaves honest families paying the price for someone else’s deception. In a member-owned exchange like Ovation Home Insurance Exchange, those costs don’t stop at one doorstep – they ripple through the entire pool. This is why we make it a priority to show homeowners how to fight home repair fraud, what red flags to watch for, and how to build year-round protection against fraud," states the company.
Florida's frequent storms and high property risks create conditions where scams thrive. After disasters such as hurricanes, unlicensed contractors and scammers often approach homeowners with promises of quick fixes and easy insurance payouts. These situations are worsened by power outages and blocked roads, making residents more vulnerable.
Ovation outlines several ways it aims to protect its members:
- As a member-owned reciprocal exchange, the interests of policyholders are aligned.
- Underwriting and claims teams are trained to identify warning signs before funds are disbursed.
- The Special Investigations Unit (SIU) acts promptly at any sign of suspicious activity.
- Collaboration with state agencies helps monitor new types of fraud.
- Members receive education on spotting contractor fraud and alerts after storms.
- Transparency is emphasized during claim reviews.
"Aligned interests: In a reciprocal, when one member is targeted by fraud, the cost doesn’t stay isolated – it ripples through the pool. Protecting against scams protects everyone."
"Stronger oversight: Our underwriting and claims teams are trained to spot red flags in contracts, estimates, and invoices before money changes hands."
"Dedicated investigations: Ovation’s Special Investigations Unit (SIU) steps in at the first sign of trouble, gathering evidence, partnering with regulators, and working to stop fraud before it spreads."
"Partnerships with impact: We collaborate with state agencies, local authorities, and industry watchdogs to stay ahead of emerging fraud tactics."
"Education as prevention: Fraudsters count on confusion. It’s why we give our members clear guidance, from how to spot contractor fraud to post-storm alerts, so you’re less likely to be caught off guard."
"Transparency you can trust: We believe in open communication. When a claim is being reviewed, we explain what’s happening and welcome your questions along the way."
Real-world cases cited include instances where contractors collected large payments without completing work or obtaining permits. There have also been situations where subcontractors filed liens against properties because they were not paid by contractors despite homeowners fulfilling their payment obligations.
To help prevent these scenarios, Ovation recommends that homeowners verify contractor licenses using resources such as the Florida Department of Business and Professional Regulation website; obtain multiple bids; avoid large upfront payments; check for required permits; never assign claim authority without consulting their agent; be wary of unsolicited offers; document all transactions; and contact their insurer before proceeding with repairs.
The company highlights that early detection—whether through homeowner vigilance or internal investigations—helps contain losses for all members. "In a traditional insurance setup, fraud might feel like someone else’s problem. In a reciprocal exchange like Ovation, it’s everyone’s problem – and everyone’s fight," says Ovation.
For those already insured by Ovation Home Insurance Exchange who feel pressured by contractors or encounter questionable requests for signatures on documents, agents can assist in verifying legitimacy.
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