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Insurance swindles could raise the costs of rebuilding the areas damaged by Hurricanes Katrina and Rita, the Coalition Against Insurance Fraud warns. Although most victims submitting claims for hurricane damage will be honest, the vast destruction will invite fraudulent claims, possibly adding millions of dollars to the costs of rebuilding the Gulf Coast region. Dishonest claimants may believe that insurers will be too busy to investigate suspicious claims closely enough amid the chaos, CAIF pointed out.

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