If my roof is storm damaged and the “ Brothers “ repair it for free , I have suffered no loss. I cannot claim on insurance. If the householder makes a claim based on commercial rates ... it is fraudulent.
Actually, you suffered the "loss" when the storm damaged your roof. Most homeowners' insurance (in the US) provides "replacement cost" so you must replace/repair it or you'll not receive full compensation. However, you can ever perform the labor yourself as long as it meets restoration that is at least equal to original, and you are paid for "the loss". No insurance fraud.
The "spin" is that they will use the proceeds to make repairs for those who do not have any insurance, and I do know of them doing this for members of the Cong AND in some places, even for some local government buildings, ie, schools.
I seriously doubt you will find a loyal JW that works on these projects providing the free labor who would complain about it. They see it as serving Jehovah and assisting their brothers.
The "catch" is, WT can use any left-over funds that were contributed for the disaster relief for ANY expense they choose as long as the funds are contributed to the World Wide Work (vs specifically the disaster relief).