$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
disaster insurance upsell scam
After a natural disaster, scammers approach homeowners with high-pressure sales for overpriced or unnecessary supplemental insurance coverage.
“insurance scam”
↑ 100%Key indicators
Usually targetsHomeowners
Often hitsReal estate professionals and homebuyers
Common regionUnited States
Last updated2026-04-04
Estimated impact
$960
median reported loss
Typical range$60 – $6.0K
Recovery rate~15%
Scam breakdown
1
Scammers follow disaster declarations and target affected neighborhoods via text, call, or door-to-door.
2
They sell supplemental coverage that duplicates existing homeowner's insurance or covers nothing useful.
3
The company collects premiums and either denies all claims or disappears.
What to do first
Contact your existing insurer before purchasing any supplemental disaster coverage.
Related terms
post-disaster insurance upsellemergency coverage scamstorm chaser insurance fraudInsurance scamsSMSRisingHomeownersDisaster victimsOlder adultsReal estate professionals and homebuyersRetirees and seniorsUnited StatesAustraliapost-disaster insurance upsellemergency coverage scam
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Brian, 42, a homeowners, encountered what appeared to be a legitimate insurance scams situation while using SMS. Scammers follow disaster declarations and target affected neighborhoods via text, call, or door-to-door.
Step 2
What happened next was calculated: They sell supplemental coverage that duplicates existing homeowner's insurance or covers nothing useful.
Step 3
The pressure escalated quickly: The company collects premiums and either denies all claims or disappears.
The outcome
Brian realized something was wrong when agent arrives unsolicited at your home after a natural disaster. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Contact your existing insurer before purchasing any supplemental disaster coverage. Brian's experience shows why agent arrives unsolicited at your home after a natural disaster and extreme urgency — claims you must sign today or lose coverage are the clearest early warning signs.
How to identify it
- Agent arrives unsolicited at your home after a natural disaster
- Extreme urgency — claims you must sign today or lose coverage
- Policy is from a company you have never heard of with no state license
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
- Treat secrecy, urgency, and off-platform payment requests as strong scam signals.
What to do now
- ✓Contact your existing insurer before purchasing any supplemental disaster coverage.
- ✓Verify the agent's license through your state insurance department.
- ✓Report storm chaser insurance fraud to your state attorney general and FEMA.
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
- ✓Save the full chat or call log before blocking the sender so the reporting path still has the original context.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- State insurance departments issue emergency bulletins after every major disaster warning about unlicensed insurers.
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓Tell close contacts if a phone or text scam used your identity, so scammers cannot reuse the same story against people around you.
- ✓Contact your existing insurer before purchasing any supplemental disaster coverage.
- ✓Verify the agent's license through your state insurance department.
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
State insurance departments issue emergency bulletins after every major disaster warning about unlicensed insurers.
FBI IC3 2024
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. United States has dedicated agencies that handle fraud reports.
ReportFraud.gov
Federal Trade Commission
Central U.S. consumer fraud reporting portal.
File an IC3 complaint
FBI Internet Crime Complaint Center
FBI portal for internet-enabled crime reports.
Start identity theft recovery
IdentityTheft.gov
Official U.S. identity theft recovery plan builder.
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
Homeowners, Disaster victims, Older adults
Geographic concentration
United States, Australia
Primary channel
SMS — Insurance scams
Why this group is vulnerable
Homeowners are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The growing number of reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- State insurance departments issue emergency bulletins after every major disaster warning about unlicensed insurers.
Source notes
- FBI IC3 2024
Frequently asked questions
Common questions about disaster insurance upsell scam
How does the disaster insurance upsell scam work?+
Scammers follow disaster declarations and target affected neighborhoods via text, call, or door-to-door. They sell supplemental coverage that duplicates existing homeowner's insurance or covers nothing useful. The company collects premiums and either denies all claims or disappears.
What are the warning signs of disaster insurance upsell scam?+
Agent arrives unsolicited at your home after a natural disaster Extreme urgency — claims you must sign today or lose coverage Policy is from a company you have never heard of with no state license
What should I do if I encounter disaster insurance upsell scam?+
Contact your existing insurer before purchasing any supplemental disaster coverage. Verify the agent's license through your state insurance department. Report storm chaser insurance fraud to your state attorney general and FEMA.
Who is most at risk for disaster insurance upsell scam?+
This scam primarily targets Homeowners, Disaster victims, Older adults. It is most commonly reported in United States, Australia and typically appears on SMS.
Is disaster insurance upsell scam on the rise?+
disaster insurance upsell scam is currently on the rise with growing reports. It has been reported across US, AU. Last updated 2026-04-04.
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Help someone avoid this scam.
Scammers succeed because people do not talk about it. If you or someone you know has been affected, there is no shame in it — it happens to millions of people every year. Share this page with friends and family so they know what to look for.