Insurance Companies Scammed Hurricane Ian Victims By Altering Damage Reports

Florida Homeowners Still Fighting Insurance Companies After Hurricane Ian

In the aftermath of Hurricane Ian in 2022, thousands of Florida homeowners, including Jeff Rapkin, are still battling insurance companies to get the compensation they believe they are owed. Rapkin, like many others, faced a disheartening reality when his insurance payout from Heritage Property and Casualty Insurance fell far short of the damage assessed by a licensed adjuster, sparking allegations of widespread fraud in Florida’s insurance industry.

A Shocking Discrepancy

Rapkin’s home was severely damaged during Hurricane Ian, which caused over $113 billion in damages across the state. With a shredded roof and waterlogged interior, Rapkin was informed by the adjuster, Jordan Lee, that his home would likely need a full rebuild. Lee, a seasoned adjuster, estimated the Rapkin family should receive a payout of $231,368.57. To Rapkin’s dismay, the check he received from Heritage was for just $15,000, after deductibles.

Rapkin’s experience is unfortunately not unique. Lee, who assessed the Rapkin home, later discovered that his report had been altered by the insurance company. In fact, out of 46 reports he filed after Hurricane Ian, 44 had been adjusted down, reducing the payout amounts owed to homeowners. In Rapkin’s case, the report was altered without Lee’s consent, and entire sections of his damage assessment were deleted.

Systemic Fraud Allegations

Rapkin has since filed a lawsuit against Heritage Property and Casualty Insurance, accusing them of breach of contract and fraud. His case is part of a larger controversy involving several Florida insurance companies that stand accused of altering adjusters’ reports to reduce payouts. Whistleblowers, including Jordan Lee, testified before Florida lawmakers in December 2022, revealing that these practices were not isolated incidents but part of what some have called “systemic criminal fraud.”

Ben Mandell, another experienced adjuster, testified that similar alterations were made to reports across six different insurance carriers. Mandell and others were allegedly instructed by their managers to exclude certain damages from reports to avoid costly repairs, particularly roof replacements.

Mandell said, “It was a deliberate scheme… and it wasn’t just with one carrier. This was happening with multiple companies across the state.”

A Crisis in Florida’s Insurance Market

Florida’s insurance market has been fraught with challenges for years, exacerbated by repeated hurricanes and costly storm damages. Since 2021, at least nine insurance companies in the state have collapsed, leaving regional carriers to fill the void. However, allegations of fraudulent practices have raised concerns about the integrity of the industry.

Doug Quinn, executive director of the American Policyholders Association, explained that homeowners are often the last to know they’ve been shortchanged. “The victims of insurer fraud are the last people to find out that they were victims,” he said.

Quinn, along with attorney Steve Bush, who represents the whistleblowers, is calling for more aggressive action by Florida authorities to hold insurance companies accountable. Despite mounting evidence, there have been no arrests or significant legal action against the insurers involved.

Lingering Damage and Financial Strain

For homeowners like the Rapkins, the financial and emotional toll of this fight has been immense. Two years after the hurricane, their home remains unrepaired, with mold spreading and structural damage worsening. In addition to the burden of maintaining their mortgage, they’re paying rent for temporary housing and facing increasing insurance premiums, all while struggling to make ends meet.

Rapkin expressed his frustration, stating, “This is a con. That’s what this is. This is, ‘make them go away at all costs. We’re not paying.'”

While insurance companies like Heritage claim they are making changes to their claims processes, including updating their software and reviewing their procedures, many Florida homeowners are still waiting for justice and the funds they need to rebuild their lives.

A Call for Change

As more whistleblowers step forward, the pressure is mounting on Florida’s insurance industry to reform. Bush, who has provided evidence of widespread manipulation of damage reports, insists that real change won’t happen until those responsible for fraud are held accountable. “If you really want to see change in the industry, put somebody in handcuffs,” he said.

Until then, tens of thousands of Floridians remain locked in disputes with their insurance companies, hoping for the compensation they deserve before their homes fall beyond repair.

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