Illinois has recorded 140 tornadoes so far in 2026, more than two and a half times the state's annual average of 54. The surge follows multiple severe weather events over the past two weeks, including a derecho that caused widespread wind damage across northern Illinois and heavy rainfall that led to flooding in parts of the Chicago metropolitan area. The National Insurance Crime Bureau has responded with a warning to residents and businesses that fraudulent contractors typically target storm-affected communities during the recovery period - and that the conditions for that activity are now present across the state.
The warning arrives at a moment when severe convective storm losses are structurally elevated across the industry. Swiss Re reported that severe convective storms generated $51 billion in insured losses in the United States in 2025 - the third consecutive year the peril exceeded $50 billion - while Aon estimated worldwide severe convective storm losses at approximately $61 billion for the same period. Cumulative US losses from the peril approached $200 billion between 2020 and 2024. Moody's data showed that average severe storm event costs through September 2025 were running 31% higher than the previous decade's average, indicating that the loss environment is structurally elevated rather than cyclically variable.
Post-disaster contractor fraud is one of the mechanisms through which already elevated storm losses are further inflated. Fraudulent or inflated repair claims filed by unscrupulous contractors add directly to claims costs, while Assignment of Benefits arrangements - under which policyholders sign over their insurance rights to a contractor, who then deals directly with the insurer - have been a documented driver of inflated claims costs across multiple markets.
"After destructive storms, most families and businesses want to start the recovery process as soon as possible," said NICB president and CEO David J. Glawe. "This is when home and business owners must be most vigilant, as fraudsters use this opportunity to swoop in, targeting those who may be deserving of payouts from their insurance policies."
NICB said post-disaster fraud schemes typically involve contractors offering debris and tree removal, emergency roof repairs, water extraction, home reconstruction and vehicle repairs. The bureau is urging affected residents and businesses to contact their insurance carrier before proceeding with any repairs and to verify contractor credentials independently.
Specific warning signs include contractors claiming insurer affiliation without verification, offering free inspections, requesting cash payments or immediate contract signatures, waiving deductibles, or presenting contracts containing blank spaces. Door-to-door solicitation immediately after a storm is itself a warning indicator. On Assignment of Benefits, NICB cautioned consumers to understand the implications before signing - transferring insurance rights to a contractor removes the policyholder from the claims process and has historically been associated with inflated repair estimates and litigation.
NICB agents work with local, state and federal law enforcement agencies and member insurance companies following severe weather events to identify and prevent fraud. The organization has made a free contractor checklist available for policyholders assessing restoration and repair providers.
