Florida Adjusters Allege Insurance Companies Altered Damage Estimates, Demand Investigation

In Florida, a serious allegation has been raised by independent claims adjusters against several insurance companies, accusing them of fraudulently altering damage estimates for wind claims. Despite presenting evidence to the Florida Department of Financial Services (DFS), the adjusters claim the investigation has stalled, leading to frustration and calls for action.

Allegations of Fraud: Three independent adjusters testified before the Florida House Commerce Committee, alleging that insurance companies frequently and misleadingly altered their damage estimates on wind claims. This could constitute fraud by insurers.

Lack of Action by DFS: The adjusters, Ben Mandell and Mark Vinson, provided extensive evidence to DFS but claim they have not been contacted for further investigation. They accuse DFS of attempting to suppress the investigation.

Response from DFS: The department initially claimed the investigation was closed due to lack of cooperation from the adjusters, which they disputed. DFS later stated that multiple allegations are under investigation, but details remain unclear.

Legal and Legislative Responses: Florida Insurance Commissioner Michael Yaworsky acknowledged the seriousness of the allegations but noted that such investigations can be lengthy. The state has passed Senate Bill 7052, the Insurer Accountability Act, to address such issues in the future.

Impact of the Allegations: The adjusters argue that insurance companies’ actions have led to significantly reduced payouts for legitimate claims, as evidenced by Mandell’s experience with a Hurricane Ian-damaged home where his original estimate was drastically reduced by the insurer.

Industry Perspective: While some in the insurance industry push back against these allegations, citing exaggerated claims by policyholders as a challenge, the adjusters insist on the importance of integrity in claims handling.

The situation highlights a significant conflict within Florida’s insurance industry, raising questions about the integrity of claims handling and the efficacy of regulatory oversight.