Florida Insurers Face Fraud Allegations as New Storm Claims Loom, CBS Highlights Adjusters’ Concerns

As Florida property insurers face a new wave of storm claims, CBS News’ "60 Minutes" has brought renewed attention to allegations of fraud involving Hurricane Ian damage estimates. The investigative report highlights claims from independent adjusters who assert that several insurance companies manipulated their damage assessments to significantly underpay policyholders. Adjuster Jordan Lee reported that out of 46 claims he handled, 44 were altered without his input, sometimes reducing the estimated damages by as much as 98%. Ben Mandell, another adjuster, echoed these concerns, revealing that insurers allegedly refused to pay for full roof replacements, opting instead to cover only minor repairs.

The allegations first surfaced in late 2022, with adjusters submitting evidence to the Florida Department of Financial Services (DFS), yet no prosecutions have occurred. The DFS maintains that the investigation is ongoing, having conducted numerous witness interviews and gathered extensive documentation. Heritage Property & Casualty Insurance, one of the companies named in the report, denied wrongdoing, explaining that revisions were part of standard procedures and blaming earlier software issues for omitting desk adjusters’ names from altered reports.

Despite these denials, the CBS report has garnered significant public attention, with over 610,000 views and a sharp decline in Heritage’s stock price. The controversy underscores broader concerns about the transparency of Florida’s insurance industry, especially in the wake of widespread claims litigation and roofing fraud. The adjusters insist that while some changes to estimating practices have been made, meaningful reform will only happen if prosecutions are pursued, sending a strong message that deceptive revisions are unacceptable. Meanwhile, homeowners like Jeffrey Rapkin, whose severely damaged property was featured in the report, continue to seek legal action against their insurers for underpayment.