Oversight Democrats Push Insurance Regulators in States Hit by Helene and Milton to Protect Hurricane Victims from Fraud

Washington, D.C. (November 4, 2024)— Rep. Jamie Raskin, Ranking Member of the Committee on Oversight and Accountability, Rep. Maxwell Alejandro Frost, and Rep. Jared Moskowitz, sent letters to state insurance regulators in in Florida, Tennessee, Georgia, South Carolina, and North Carolina amid concerns that fraudulent and dishonest industry practices are targeting vulnerable communities in the wake of Hurricanes Helene and Milton.

“As communities in Florida, Tennessee, Georgia, South Carolina, and North Carolina attempt to recover from the destruction and devastation wrought by Hurricanes Helene and Milton, we must ensure that they are not further victimized by insurance companies refusing to fairly pay out claims.   There is a decades-long pattern of bad actors in the insurance industry—both large and small insurers—shortchanging customers in the wake of natural disasters.   As the intensity and frequency of natural disasters increases due to climate change and as hurricanes reach further inland and higher elevations, it is crucial that we hold all insurance companies accountable to honoring their customers’ claims, especially in the wake of these disasters,” wrote the Members.

Last month, CBS’s 60 Minutes aired a report featuring testimony from insurance insiders describing how, in the wake of Hurricane Ian in 2022, insurance carriers altered damage reports, misled homeowners, and “cheat[ed] them” out of “70%, 80%, or 90% of their claim.”   

Although the report focused on Florida, there is evidence that these fraudulent practices extend to six different states.  60 Minutes’ report echoed findings by the Washington Post that found that victims of Hurricane Ian in Florida received payouts reduced by “45 to 97 percent” after insurance companies slashed damage estimates made by field adjusters.

In the wake of Hurricanes Helene and Milton, concerns persist that consumers are being targeted by fraudulent and dishonest industry practices.  Recent reports indicate that insurance companies have already denied more than 37,000 claims in Florida alone.

In today’s letters, the Members asked state insurance regulators to help ensure insurance companies do not engage in dishonest or fraudulent practices in the wake of Hurricanes Helene and Milton by demanding that insurance companies preserve documents regarding damage estimates and claims payments.  The Members also requested the state insurance regulators provide a briefing to Committee staff regarding their ongoing proactive efforts to protect victims and monitor insurance practices.

Click here to read the letter to the Florida Office of Insurance Regulation.

Click here to read the letter to the Georgia Office of Commissioner of Insurance and Safety Fire.

Click here to read the letter to the South Carolina Department of Insurance.

Click here to read the letter to the North Carolina Department of Insurance.

Click here to read the letter to Tennessee Department of Commerce and Insurance.