Heritage Insurance vs. 60 Minutes
Heritage Insurance found itself in the spotlight after a 60 Minutes report aired on September 29, 2024, accused the company of altering damage reports to shortchange Florida homeowners impacted by Hurricane Ian.
Heritage’s Side of the Story
Heritage CEO Ernie Garateix rejected the allegations of fraud, stating, “The accusation by adjusters, via 60 Minutes, that we used ‘altered damaged reports to deceive customers’ is flat wrong.” He emphasized that the company has made several changes since Hurricane Ian, including overhauling their claims software and strengthening their internal processes to comply with Florida’s new insurance reform laws.
He further explained that 42% of claims (out of a sample of 10,000) were revised downward, 26% were revised upward, and the rest remained unchanged, demonstrating that adjustments were not part of a scheme but a regular process. “This is further evidence that we work to pay every eligible claim.”
What 60 Minutes Reported
In the 60 Minutes investigation, whistleblowers, which included licensed adjuster Jordan Lee, claimed that damage reports were altered by insurance companies without adjusters’ knowledge. Lee, who assessed the Rapkin family’s home after Hurricane Ian, said his original estimate of $231,368 was slashed to $15,469. The report also pointed out that this wasn’t an isolated case. Lee testified to Florida lawmakers that nearly all of the claims he handled were similarly altered. “I handled 46 of them. 44 of them were changed.”
Heritage’s Response
Heritage Insurance acknowledged that some reports were altered, but emphasized that third-party field adjusters are expected to collaborate with their higher-ups. Garateix stated, “Third party field adjusters, like Jordan Lee, always have to collaborate with those higher up in their company on their estimates and the company Lee worked for during Hurricane Ian is no longer in business.” He also explained that it has made several improvements following Hurricane Ian, including a new claims system.
What’s Next?
Attorney Steven Bush is representing six whistleblower adjusters in lawsuits against multiple insurance companies, alleging they engaged in fraud by altering damage reports after Hurricane Ian to reduce payouts to homeowners.
Bottom Line: After the 60 Minutes report, the Heritage Insurance stock dropped. As of now, Heritage saw its stock price fall by 42% over the past month.
