The US-based National Insurance Crime Bureau (NICB) says property and casualty insurers paid between $US4.6 billion ($6.6 billion) and $9.2 billion ($13.2 billion) extra in disaster claims last year due to insurance fraud.

Policyholders are likely to bear costs in increased premiums, and the NICB says fraud adds 5-to-10% to the total claims paid following a disaster.

The Federal Bureau of Investigation found that of the $US80 billion ($114.4 billion) in government funding for reconstruction following Hurricane Katrina, insurance fraud may have accounted for $6 billion ($8.6 billion).

“Disasters can bring out the best in people as they rush to help those in need. Unfortunately, disasters also attract predatory contractors looking to defraud and deceive disaster victims,” NICB President and CEO David Glawe said.

Rising costs have impacted insurance prices across the US, with consumers in Florida scrambling under deadlines to find an insurer to meet mortgage lender requirements, leading some to sign with non-admitted insurers. Non-admitted status means an insurance carrier has not been approved by the state’s insurance department.

The NICB says it has worked alongside law enforcement to quickly identify fraudulent contractors, but has also stressed the importance for consumer awareness.

“We need disaster victims and the general public’s assistance in identifying these unscrupulous players,” Mr Glawe said.

As part of Consumer Fraud Awareness Week, the NICB has encouraged disaster victims to contact their insurer, law enforcement, or the NICB about deceitful or suspicious contractors.