Think Before You Sign: Mercury Insurance Urges Homeowners to Stay Alert for Insurance Scams

Rhea-AI Summary

Mercury Insurance (NYSE: MCY) on Oct. 21, 2025 urged homeowners to watch for common home insurance scams and offered practical tips to protect coverage and avoid fraud. The release cites U.S. insurance fraud costs of $308.6 billion and warns of bogus policies, unlicensed brokers, roofing scams after extreme weather, and consumer‑committed fraud like exaggerated claims.

The company recommends verifying insurers with state insurance departments, checking agent credentials, reading policy documents carefully, confirming contractor licenses, and reporting suspicious activity to the National Insurance Crime Bureau.

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Company Offers Tips to Help Consumers Spot Scams and Protect Their Coverage

LOS ANGELES, Oct. 21, 2025 /PRNewswire/ -- Home insurance is intended to give homeowners peace of mind by protecting their most valuable asset, but not everyone who purports to be selling insurance operates with integrity. Insurance fraud, including homeowners insurance fraud, is all too common in the U.S., costing it approximately $308.6 billion — or about $900 more per policyholder annually in increased premiums.

Mercury Insurance (NYSE: MCY) wants to help consumers protect themselves by highlighting some common home insurance fraud schemes.

"When choosing a home insurance provider, it's important to first research the company and your insurance agent if you're working with one," said Steve Wang, Sr. Divisional Manager, Claims at Mercury Insurance. "Verify credentials, be cautious of deals that seem too good to be true — because they probably are — and carefully review your policy documents before signing."

Common Home Insurance Fraud Schemes

Some common schemes to be aware of include:

• Bogus insurance policies: Consumers should do their homework on prospective insurance providers to verify that they're even real. Scam companies will lure consumers in with artificially low rates. They then begin paying premiums to a nonexistent company, only to realize they've been defrauded when they try to file a claim. Customers can ensure insurance providers are legit by visiting their state's insurance department website.
  
  
• Unethical insurance agents and unlicensed brokers: A shady insurance agent may sell a policy that offers little to no coverage, or a rogue broker may apply for a policy, cancel it and pocket the money. Scammers might also manipulate policy details, forge documents or create fictious policies. All this to say, it's critical to read the policy before signing it. An honest insurance agent will review a policy thoroughly with the policyholder to ensure they understand it.
  
  
• Roofing Scams: Roofing scams are more likely to occur after an extreme weather event like a hurricane or storm. Unlicensed contractors may convince homeowners that they need a new roof and offer to handle the insurance claims process. From there, they may inflate repair costs, submit false invoices or provide poor-quality repairs, all leading to the customer being shortchanged in the end. Customers should ensure that any contractors they hire are valid by verifying licensing and business registration, as well as reading independent reviews from previous customers.

It's important to note that sometimes consumers themselves are the ones engaging in illegal home insurance fraud. This can include falsifying or exaggerating home insurance claims or intentionally causing damage like a fire for an insurance payout. No matter the scheme, fraudulent insurance claims raise prices for everyone across the board and benefit no one.

"A trustworthy insurance provider will always operate with transparency, offering clear policy information and reliable customer support. By staying alert and well-informed, homeowners can protect their property, finances and peace of mind from falling victim to insurance fraud," added Wang.

Anyone can report suspicious insurance activity to the National Insurance Crime Bureau.

About Mercury Insurance

Mercury Insurance (NYSE: MCY) is a multiple-line insurance carrier predominantly offering personal auto, homeowners, renters and commercial insurance through a network of independent agents in Arizona, California, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas and Virginia, as well as auto insurance in Florida. Mercury writes other lines of insurance in various states, including commercial, business owners and business auto, landlord, home-sharing, ride-hailing and mechanical protection insurance

Since 1962, Mercury has provided customers with tremendous value for their insurance dollar by pairing ultra-competitive rates with excellent customer service, through more than 4,200 employees and a network of more than 6,340 independent agents in 11 states. Mercury has earned an "A" rating from A.M. Best, as well as "Best Auto Insurance Company" designations from Forbes and Insure.com. For the latest news, please visit the new Mercury Insurance Newsroom at https://newsroom.mercuryinsurance.com/. For further assistance, contact us at newsroom@mercuryinsurance.com. For more information visit www.MercuryInsurance.com or follow the company on X, Instagram or Facebook.

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SOURCE Mercury Insurance

FAQ

What did Mercury Insurance (MCY) warn homeowners about on October 21, 2025?

Mercury Insurance warned homeowners to watch for bogus policies, unlicensed brokers, roofing scams after storms, and exaggerated or falsified claims.

How much does the press release say U.S. insurance fraud costs homeowners annually per policy?

The release states insurance fraud costs about $308.6 billion total, or roughly $900 more per policyholder annually in higher premiums.

How can homeowners verify an insurance provider according to Mercury Insurance (MCY)?

Homeowners should check their state's insurance department website and verify agent credentials before buying a policy.

What steps does Mercury Insurance (MCY) recommend to avoid roofing scams after a storm?

Verify contractor licensing and business registration, read independent customer reviews, and avoid upfront deals that seem too good to be true.

Where can consumers report suspicious insurance activity mentioned by Mercury Insurance (MCY)?

Consumers can report suspicious insurance activity to the National Insurance Crime Bureau.

Does Mercury Insurance (MCY) advise homeowners to review policy documents before signing?

Yes. The company emphasizes carefully reviewing policy documents and having an honest agent explain coverage before signing.