Heritage Property & Casualty Sues Adjuster Over Hurricane Ian Claims Dispute

Heritage Property & Casualty Insurance Co. filed a libel suit against independent adjuster Jordan Lee, alleging he fraudulently inflated damage estimates for Hurricane Ian claims, potentially to increase his commission-based fees. Lee, who appeared on 60 Minutes in September, had claimed that Heritage and other insurers manipulated adjusters' damage reports to reduce payouts to policyholders. The insurer asserts that Lee's estimates were inaccurate, lacking sufficient documentation, and that a third-party administrator had to revise many of his claims for compliance and accuracy.

Lee's attorney contends that the lawsuit aims to silence whistleblowers exposing systemic issues in insurance claim handling, particularly post-disaster damage assessments, and argues it could discourage others from speaking out. The conflict began when Lee publicly alleged that insurers had altered damage report figures without adjusters' consent, a claim raised initially in a Florida House committee hearing. Heritage denies these accusations, stating that estimate revisions were conducted internally and in the insureds’ best interests, including some upward adjustments.

The Heritage lawsuit outlines specific properties inspected by Lee and categorizes his estimates as containing falsities intended to inflate fees. However, evidence suggests that adjuster compensation is capped within fee schedules for damage estimate ranges rather than proportionally increasing with inflated estimates. The insurer's complaint seeks damages, attorney fees, and asserts claims of libel, slander, defamation, and fraud.

This legal action highlights broader industry tensions about claims transparency and insurer-adjuster relationships, especially concerning catastrophe claims where accurate damage evaluation is challenging. Although legal and regulatory inquiries into such alleged practices have been anticipated in Florida since 2022, no formal outcomes have been reported. Meanwhile, Heritage's stock price initially dropped following the media exposure but has since recovered.

The Heritage lawsuit does not name the media outlet involved in the original report, focusing solely on Lee. Experts suggest the suit's strategic intent may be to deter other adjusters from airing grievances publicly, representing a significant moment in the ongoing discourse about insurance claim integrity and regulatory oversight. This case underscores critical compliance and reputational risks insurers face regarding claims management during major natural disasters.