A Craven County man has been charged with insurance fraud after an undercover “bait house” operation run by two North Carolina insurers and state investigators.
The investigation involved North Carolina Farm Bureau Mutual Insurance Company (NCFB) and the North Carolina Insurance Underwriting Association (NCIUA), working with the North Carolina Department of Insurance’s Criminal Investigations Division.
Cameron Alexander Hammond, 34, of Vanceboro, faces one count each of insurance fraud, attempting to obtain property by false pretense, and damage to residential property. All three charges are felonies.
Investigators alleged that on August 18, while working for Carolina Trophy Roofs, Hammond deliberately damaged roofing shingles at a home in Washington, North Carolina. They allege he then told both insurers the roof had suffered weather damage, in order to obtain insurance money and a commission on a roof replacement.
Hammond is due to appear in Beaufort County District Court on December 17. The charges are allegations, and he has not been convicted.
In a bait house operation, investigators prepare a property, often with hidden cameras, and invite contractors to inspect it. The aim is to catch contractors who create damage or exaggerate it to generate claims.
Roof claims are a particular target for fraud. Hail and wind damage can be hard for homeowners to verify themselves, and a full roof replacement can be worth thousands of dollars to a contractor.
The insurers urged homeowners to be cautious about unsolicited offers of free roof inspections, especially after storms. They also advised homeowners to stay present, or have someone they trust present, while anyone is on their roof, and to ask for date-stamped photos. Homeowners should contact their insurer or agent before signing any contract or assignment of benefits, and check that contractors are licensed and have good references.
For agents serving homeowners in storm-prone states, the case is a reminder that contractor-driven fraud remains a cost that eventually reaches every policyholder through higher premiums. NCIUA’s involvement is significant. It provides wind and hail cover for North Carolina’s coastal areas, where storms regularly bring out contractors looking for work.
Agents are often a homeowner’s first call after a storm. Encouraging clients to contact their agent or insurer before letting anyone on the roof, and certainly before signing an assignment of benefits, is one of the most effective protections against both fraud and disputed claims.
Bait house operations also signal that insurers are investing more in active fraud detection, rather than relying only on reviewing claims after they are filed. Contractors who generate unusually high numbers of roof claims are likely to face closer scrutiny.
