TDI’s Fraud Unit has investigators, prosecutors, fraud examiners, attorneys, and support staff. Vivian Cervantez’s job is performing financial analysis and forensic accounting services. As a financial analyst, her efforts help investigate cases of insurance fraud.

What kind of work does a fraud analyst do?

We’re examining a lot of data and looking for unusual patterns. A fraud analyst’s work can include converting bank statements into Excel spreadsheets and providing summary tables for investigators. Other times, work involves cross referencing bank statements, billing records from doctors, and claims data from insurance companies.

What is forensic accounting?

Forensic accounting is the marriage of accounting and investigating. Accounting involves records and the recording of transactions. Forensic accounting is taking those records and using them to find out if there is a misuse of funds or if there are any patterns of misuse.

What’s an example of forensic accounting?

A policyholder, like a homeowner, might pay their policy premium to an insurance agent. The agent then keeps the money instead of handing it over to the insurance company to pay for the policy. A financial analyst’s research may see the money going into the agent’s accounts but doesn’t see it paid out to the insurance company. That’s insurance fraud.

Why is financial analysis important?

Insurance fraud leads to higher insurance premiums for everyone. The Fraud Unit’s efforts to cut down on the amount of insurance fraud should help keep insurance more affordable by reducing the impact that fraud has on insurance premiums.

How do you avoid becoming a victim of insurance fraud?

In the case of giving your money to a bad agent who doesn’t give you a real policy in return, do your research. You can call our Help Line at 800-252-3439 to make sure an insurance agent is licensed. Try to pay the insurance company directly. Don't pay the agent in cash. Use debit or credit. If something feels wrong, then it probably is wrong. 

• Report insurance fraud
• Insurance fraud guide
• Fraud investigator helps shut down COVID-19 testing fraud
• How TDI helped bring down fraudster "Doc" Gallagher

You have about two minutes to get out of a burning house from the second your smoke alarm goes off. It’s critical your alarm works.

How many smoke alarms should I have?

You should have enough smoke alarms for everyone to hear in every area of your house. You should have them on every level of your home and inside and outside every sleeping area. Test your alarms during the day and again at night to make sure everyone can hear them.

Where do smoke alarms go?

Read the instructions that come with your smoke alarm to know if it goes on the wall or ceiling. If you don’t have the instructions, search your smoke alarm model number online to find them. There will be instructions for manufactured homes and vaulted ceilings.

How often should I test my smoke alarm?

Press the button on your smoke alarm every month. If you can’t reach it, use a broom handle or call a friend for help. While you’re near the alarm, dust it off. They can collect dust and bugs that could make them malfunction.

Do you recommend the new smoke alarm technologies?

If you’re shopping for a new alarm, consider the ionization and photoelectric smoke alarms. Photoelectric alarms detect smoldering fires and ionization smoke alarms detect flaming fires. Another alarm style, the multi-criteria alarm, has a sensor to know if a fire is a non-emergency cooking fire or an emergency fire.

Where can I get a free smoke alarm?

The American Red Cross provides free smoke alarms. Many community organizations and fire departments also give free smoke alarms. Fire departments are also great resources if you have questions about where to put a smoke alarm in your house.

What else should I know about smoke alarms?

There are three main takeaways:

- Make sure your house has smoke alarms.

- Test your smoke alarm every month.

- Replace smoke alarms every 10 years.

Learn more:

Smoke alarms: Where to put them, how often to replace batteries
Smoke and carbon monoxide alarm safety
Is your smoke or carbon monoxide alarm chirping? Here’s what it’s telling you

When you file a home insurance claim, you can also get paid for any personal property that was stolen or destroyed. Your agent or company will ask if you have a home inventory.

Why do I need a home inventory?

A home inventory is a way to help you remember what you own. By taking pictures or writing it down, you can remember the TVs, light fixtures, silverware, clothes, furniture, and more.

How much will my insurance pay for my personal property?

It will pay up to your coverage limit if the total amount stolen or destroyed adds up to that amount. You might have more expensive items – like jewelry, bicycles, or artwork – that are more valuable. You can buy an endorsement to your policy that will pay more for these items. Look on the first page of your policy to learn your personal property coverage limit.

How do I put together a home inventory?

The easiest thing you can do is take pictures and videos of everything in your house. Don't forget your closets, drawers, garage, and sheds. You can also use TDI's home inventory (PDF) form or a home inventory app to write down items. Include the serial number, the date you bought it, and the amount you paid. Take pictures of receipts.

How often should I update my home inventory?

After you put an inventory together, update it every year. You buy and sell things throughout the year that you'll need to add or take off. If you bought something expensive or valuable, ask your agent about buying an endorsement.

Sgt. Steve Richardson led the TDI Fraud Unit’s investigation into William Neil “Doc” Gallagher, a radio host in the Dallas area. Gallagher, known as the “Money Doctor,” targeted seniors to surrender their annuities and give him the money to “invest.” In 2020, Gallagher was convicted of securities fraud, theft, and money laundering, all first-degree felonies. He got three life terms and was ordered to repay more than $10.3 million in restitution. How can I avoid becoming a victim of insurance fraud? Richardson says to do your due diligence when working with a financial adviser or insurance agent. Do a thorough online search for anyone you’re doing business with. Online searches would have shown that Gallagher was investigated by the Texas State Securities Board and lost his security license. How can we protect our senior family and friends from senior fraud? Many of Gallagher’s victims were seniors who lost their entire savings and investments. Richardson suggests monitoring your senior relative’s finances to know where they’re investing or spending their money. How can I check the license status of an insurance agent? You can check license status and complaint history by calling our Help Line at 800-252-3439. How to avoid scams aimed at older adults Beware of seller impersonation fraud

Summers in Texas usually means cooking on a campfire or barbecue. Learn more about keeping your family safe while cooking outdoors. What’s the danger with campfires? The main danger is that the fire will get out of control and spread. The first precaution you should take is to ask if fires are allowed. Even if the campground allows fires, there might be a burn ban in the area. Where’s the best place to set up a campfire? If your campsite has a fire ring, use that. If not, set it up away from trees and dry grass. Make sure the area around the campfire is clear of debris. How do we keep kids safe around campfires? Set up a safety zone of about three feet around a campfire. Mark it with rocks or spray paint. Tell children to stay out of the safety zone. Keep a bucket of water nearby to put the fire out if you need to. Only let adults start the fire. Kids should be observers. Go over these rules with children so they know what to expect before the fire starts. What are some grilling safety tips? Don’t use grills close to houses or under trees. Talk to children about staying away from grills and not playing nearby. If you have dogs or other pets in the yard, keep them inside or away from the grill. Should we put out a campfire or barbecue? Yes. Don’t let campfires or charcoal on a barbecue smolder all night. If the embers are hot, they can start another fire. Put out fires with water or another method you’re comfortable with. Outdoor burning: What to know before you light the match Wildfire risks: Projects to help you protect your home

With the start of hurricane season around the corner on June 1, now is the time to review your insurance and prepare your house and your family for hurricanes.

When is the peak of hurricane season?

Texas typically gets its biggest hurricanes in August and September, with August being the peak month. Hurricanes have also formed as early as May.

When should I start worrying about a storm turning into a hurricane?

Pay attention to the weather during hurricane season. Some hurricanes develop farther out and give us more time to prepare. But others – like Hurricane Humberto in 2007 – can develop and make landfall in as little as 24 hours.

What can I do now to prepare for hurricane season?

You can start building your storm kit. Gather enough water, nonperishable food, medicine, batteries, pet food, and other supplies to ride out a storm. If you think you’ll evacuate, look at evacuation routes and which roads you’ll take to get to safety.

Why do I need a storm kit?

As a storm approaches, people rush to the store for supplies. If you’ve bought yours ahead of time, you don’t have to be in the scramble. Once a storm hits, you’ll have what you need to either evacuate or be home for a few days.

Also prepare a kit for your car. Think about what you’d take with you if you’re on the road for a couple of days.

What can I do to prepare my house for a hurricane?

In the days and hours before a hurricane, get your house ready by:

• Boarding up windows. Taping isn’t good enough.

• Securing loose outdoor items, like patio furniture.

• Trimming trees.

• Putting important documents in a sealed container and storing them off the ground.

Should I review my insurance before a hurricane?

Yes, review your insurance to know your coverages, deductibles, and if you have coverage to live elsewhere if you can’t stay in your home during repairs. Also know if you have flood insurance. Most home policies don’t cover floods. Ask your company or agent if you’d like to get flood insurance

Just a couple of inches of unwanted water in your house can cause extensive and expensive damage. Most home and renters insurance policies cover water damage—if the water comes from inside the house.

What’s the difference between water damage and flood damage?

Flood damage is caused by water from a rainstorm or a body of water that suddenly rises over a dry area and into your house.

Water damage in your house comes from pipes, water heaters, washing machines, refrigerators, and other devices that hold water.

What does “sudden and accidental” mean?

Most home policies say they cover “sudden and accidental” water damage. That means a water leak or overflow that happens suddenly, and accidentally. It’s not a leak that’s been dripping for a long time. If you notice a leak that’s caused damage, file a claim right away with your insurance company.

Are water leaks from fish tanks covered by home policies?

Not usually. Home policies cover plumbing and appliances, but not fish tanks or water tanks you use for drinking water. If you want to insure a fish tank, talk to your insurance agent or company.

Are mold and mildew covered by home policies?

Mold is covered if it’s on something that your home policy would replace. If mold is on walls, for example, your policy will pay to have that torn out and replaced.

Home policies don’t cover mold remediation, which is when a company comes into your house and finds and removes mold. If you want coverage for possible future mold remediation, talk to your insurance agent or company.

Should I make repairs if I have water damage in my house?

Make enough repairs to keep the damage from getting worse. If a window breaks or there’s a hole in your roof and water is getting in, cover the window or roof with boards or tarps. Keep your receipts too because your insurance company should reimburse you.

What other tips do you have if I get water damage?

• Take pictures of the damage. Your company will ask for them.

• Don’t make permanent repairs until an adjuster has seen the damage and said it’s OK.

As we turn the corner into spring, it’s time to think about rain showers and flooding. Most homeowners insurance policies don’t cover damage from flooding. Who should consider flood insurance? Everyone, according to FEMA. Everyone is at some risk of a flood damaging their home and property. Developers might build a neighborhood in a place where bayous or wetlands would have soaked up rainwater. And a heavy, prolonged rainstorm– like we saw with Hurricane Harvey – could stall over a city, causing flooding where it might not normally flood. Will someone tell me if I need flood insurance? Not necessarily. If you have a mortgage and you live in a flood hazard area, your lender might require you to have flood insurance. If not, it’s up to you to ask your insurance agent for flood insurance. Do I need flood insurance if I’m not in a flood hazard area? FEMA says 40% of the flood claims are for homes outside flood hazard areas. What’s the risk of not having flood insurance? The risk is the possibility a flood will damage your house and contents and you’ll have to pay for it out of pocket. One inch of rain in your home can cause about $25,000 in damage. Most homeowners insurance doesn’t pay for flood damage. Won’t FEMA help me if my home floods and I don’t have insurance? If storm damage is declared a disaster by the president, FEMA might offer financial assistance. The average disaster assistance check is about $4,000. The average flood claim is about $115,000. Disaster assistance isn’t meant to completely fix your home. How do I get flood insurance? Ask your homeowners insurance agent or company. If they don’t sell flood insurance, go to Floodsmart.gov to find a flood insurance agent. You can buy up to $250,000 in flood coverage to repair your home. Renters can also get flood insurance on their personal property. You have to wait 30 days after purchase for your flood policy to take effect. So don’t wait until a storm is on the way to shop. Hurricane season: How to prepare your home and property