It’s not just a few Florida-domiciled insurance carriers that have allegedly altered field adjusters’ reports on property damage in recent years. It’s also major national insurers, including Allstate, adjusters and policyholders alleged at a U.S. Senate hearing marked by drama and political theater.
After hearing testimony from a North Carolina policyholder who said his Hurricane Helene-damaged home is still unrepaired, State Farm’s operations vice president took the extraordinary step of apologizing during the May 13 Senate subcommittee hearing.
“We have 66,000 employees. We’re human beings. We make mistakes. We made mistakes in the handling of this claim. These actions do not reflect the values of State Farm,” said company Vice President Michael Keating, who stood up and turned to address the insured, Jacob Vertel, of Asheville.
“On behalf of State Farm I want to sincerely apologize to Mr. and Mrs. Vertel,” Keating said, promising to resolve the claim.
But an Allstate executive at the hearing disputed some of the testimony made from a Georgia policyholder and adjusters who worked her Helene claim after a massive oak tree fell on the home.
“Some of what you heard today was not accurate,” Allstate’s Mike Fiato, chief claims officer, said during the hearing of the Disaster Management Subcommittee of the Senate Committee on Homeland Security and Governmental Affairs. Fiato noted Allstate settled with the homeowners for about $100,000—something the policyholder did not reveal in her testimony.
Allstate declined to pay an additional $100,000 or more in non-structural or cosmetic restoration work, Fiato explained.
Nonetheless, Sen. Josh Hawley, R-Mo., who has indicated he plans to run for president in 2028, scarcely let Fiato answer questions and accused Allstate of fraud.
“I have to notice that your (Allstate’s) profits have never been better. You made $4.6 billion in profits and your CEO, Tom Wilson, last year was paid $26 million,” said Hawley, chairman of the subcommittee. He asked why the policyholder could not get paid but the company CEO can. Fiato responded that Allstate had, in fact, paid the claim.
“No, you didn’t. You paid a paltry sum,” said Hawley, the former attorney general for Missouri and chair of the subcommittee. He went on to demand Fiato reveal his own salary, which Fiato declined to provide.
The dramatic exchange came after two adjusters, one an independent adjuster who was hired by Allstate and the other who has worked mostly for Allstate in recent years, testified that Allstate reviewers or desk adjusters had repeatedly asked them to remove line items from storm damage estimates and to mischaracterize some types of damage.
