By TRACEY DRURY
tdrury@bizjournals.com | 716-541-1609

An insurance industry group reports that it is seeing bogus insurance claims related to recent storms.

The New York Alliance Against Insurance Fraud reports that suspicious claims are coming in as residents from across the state begin filing for relief for damages caused by Tropical Storms Irene and Lee.

Though many claims are warranted, others are taking advantage, the group warned, and that could have a longer-term effect of higher premiums for all New Yorkers.

"Most consumers are honest and forthright, but some are exploiting the confusion of these natural catastrophes to illegally try and line their pockets with insurance money," says John Sargent, chairman.

The association said insurers are paying honest claims as quickly as possible, while keeping an eye out for suspicious claims that are more likely as damage claims keep coming in. Bogus claims by homeowners and drivers typically appear after a major storm causes widespread water and wind damage to property.

The financial stress of the economic downturn could increase the temptation to exploit the storm, Sargent says.

Fraudulent claims range from individuals inflating the value of damaged possessions or making claims for goods they never owned. Others cause damage to vehicles and claim it was caused during the storm.

The association offered suggestions for remaining within the law: Have an insurer inspect damage before beginning permanent repair work; ask agents or insurers to help fill out claim forms and gather material needed to support a claim; watch out for shady contractors who may pocket a fee up-front and then disappear without completing the repairs.