May 23, 2025

Phoenix, AZ- As Arizona’s wildfire season stretches year-round, beyond its traditional boundaries, the Department of Insurance and Financial Institutions (DIFI) is warning residents to remain alert—not just to flames, but to fraud.

Dry conditions, strong winds, and extreme heat are putting more lives and properties at risk. In the aftermath of these disasters, while communities focus on recovery, bad actors often take advantage of the chaos to commit fraud.

“You can’t always avoid disasters—but you can avoid scammers,” said Lori Munn, Deputy Director of Insurance at DIFI. “We want residents to know that there are steps they can take to protect themselves and their finances from dishonest contractors and fraudulent claims.”

Common Post-Disaster Fraud Schemes

Fraudsters may exploit homeowners when they are most vulnerable, especially when safety and recovery are top of mind. Citizens are encouraged to be wary of the following tactics that may signal a dishonest public adjuster or contractor:

• People going door-to-door offering unsolicited cleanup or repair services
• People requesting upfront payment and failing to complete the job
• Anyone pushing homeowners to sign forms that give them direct control over insurance payouts

How to Protect Yourself

After a wildfire, your first priority is safety. Wait for local authorities to declare it safe before returning to your property. Once it is safe, follow these steps to protect yourself and your insurance benefits:

Work with Your Insurance – Not Contractors

• Contact your insurance company directly to create a plan. Do not rely on a contractor to explain your policy.
• Avoid signing forms such as Assignment of Benefits, Direct Payment Authorization, or Insurance Claim Transfers. 
• Retaining control of your insurance payments helps ensure your interests are protected.

Verify Before You Trust

• Always verify contractor licenses and credentials before agreeing to any work.
• Get written estimates and compare multiple quotes.
• Don’t be pressured into making hasty decisions.

More Resources Available

DIFI offers a range of wildfire recovery and insurance resources to help you make informed decisions.  Visit https://difi.az.gov/homeowners-insurance-resources for:

• After the Wildfire Guide for Arizona Communities
• Information on flood insurance, as floods often follow wildfires
• Guidance on avoiding post-disaster fraud and working with insurance

Awareness is the first line of defense against disaster-related fraud. For more information or to report suspected fraud, contact the Arizona Department of Insurance and Financial Institutions at (602) 364-3100 or online at: difi.az.gov.