This is a system that we're talking about here. This is a system that promises homeowners that they are in good hands, that they will watch over them like a good neighbor. And after billions and billions of dollars in premiums are collected and pocketed [00:00:15] by these insurance companies, the people who are left holding the bag are the policyholders, American citizens at their moment of maximum despair. There's something wrong with that system. There needs to be some accountability. And we're going to do our best to start getting it today. [00:00:32] Republican Senator Josh Hawley, who has really fashioned himself as an economic populist, grilled insurance company executives about essentially screwing over American citizens, their own customers by cutting natural disaster related payments. [00:00:50] Are we really surprised? Now, look, I commend Hawley for asking the tough questions, but this has really been a theme of the show. Talk is cheap. What are we going to do about it? Are we just holding a hearing? So I can commend you for your tough line of questioning. [00:01:08] But then we forget about it and nothing is done. That's something I want you all to keep in your minds as I give you the details of this story, because it's about damn time we demand more from our members of Congress. So Holly is the chair of the Senate Homeland Security Subcommittee, which [00:01:25] happens to oversee disaster management. Tuesday's hearing was intended to investigate insurance companies that have allegedly cut payouts to families who have suffered major property damage due to recent hurricanes. [00:01:42] So among those who testified were executives from all state and state farm whistleblowers from the insurance industry and affected homeowners. So before we get to the testimony, here's Josh Hawley calling out the executives for letting struggling Americans suffer because of their refusal [00:02:01] to pay out claims. Let's watch. In the last year alone, disasters have devastated communities across our country. Hurricanes Milton and Helene have cut a path through the southeast, uprooting trees, destroying roofs, turning family lives into a nightmare on the other end of the country. [00:02:17] In California, brutal wildfires have burned entire communities to the ground. And these disasters have done more than cause property damage, though that is quite significant. They have done more than cause inconvenience, though that can be harrowing. They have destroyed the lives of people. [00:02:34] We're not talking here about minor inconveniences. We're talking about moms who've had to haul five gallon buckets of water because the pipes are gone. We're talking about grandparents who've had to sleep in their cars because there's no roof over their heads. We're talking about families who are maxing out their credit cards [00:02:50] because their insurance companies won't pay out any damage claims. All of that is true. I mean, living in California, living in Los Angeles, we had devastating wildfires, multiple devastating wildfires taking place at the same time in time. [00:03:07] In January of this year, the Pacific Palisades gone Altadena, California destroyed. A lot of those folks are not getting their insurance claims paid out. In fact, a lot of them got dropped by their insurer [00:03:23] just before the wildfires started. My heart breaks for them. So with that in mind, let's get to the rest of what happened during this hearing. Natalia. Miguel, who's the homeowner from Georgia that appeared at this hearing to testify [00:03:40] about her experience with Allstate, shared a story about her 50, I'm sorry, 70 foot tree or a 70 foot tree falling onto her home's roof, essentially collapsing it, destroying it. She said Allstate replaced her first claims adjuster [00:03:59] after that person confirmed that her family suffered a significant loss. Okay, so Allstate then assigned another adjuster who she claims significantly downplayed the damage and slashed the estimate for how much it would cost to fix. [00:04:14] So the original adjuster was looking out for her and was like, wow, yeah, your home's destroyed. This is a significant loss. According to her, all state then comes in and is like, hey, be cool, be cool, get out of here. Get out of here. This is your new adjuster. Enjoy. And the adjuster downplays the claim. It's like, nah, everything's fine. [00:04:32] That that rubble, like your home's been reduced to rubble, but you could live in that, right? It's livable. It's livable. Okay, so, Allstate's initial evaluation was 40, $46,000 in in a payout, but she [00:04:48] said she hired an independent inspector and a structural engineer who reported that her home suffered extensive damage. And she later submitted a sworn proof of loss, claiming $497,000 in damages. [00:05:06] And Allstate looked at all that evidence and they were like, you know what? You're right. We're going to pay out your claim. Just kidding. They did the opposite. Allstate rejected that claim and offered to pay less than $100,000. What's the point of getting insurance if they're just going to screw you? [00:05:23] And I've had this conversation recently with my dad, of all people. I was just like, if you are fortunate enough to have a home that's paid off and you don't have to have insurance because your lender forces you to be insured for obvious reasons, right? [00:05:39] If there is a disaster that destroys your home, your lender wants to be made whole. You're still going to have to pay your mortgage on that home that no longer exists. And so the bank wants to make sure, you know you've got insurance coverage and they're going to get their money. But if you have a paid off home at this point, I would just have [00:05:58] a special I would set up a special fund. Okay. And every month I would put money in that fund. Money, money, money. And once a disaster strikes, at least I've got something. Because these insurance companies are charging an arm and a leg. And then when you need them, they basically tell you to eff f off. [00:06:15] It's so sick. The first adjuster who assessed Miguel's home but was taken off the case, also attended this hearing and revealed that Allstate had a history of pressuring him to reduce his estimates. Take a look. In general, my experience handling Allstate claims [00:06:33] was marked by repeated frustration. My estimates were frequently rejected or returned with requests or modifications that often reduced coverage. These changes typically involved reclassifying line items [00:06:48] to minimize costs. In my professional opinion, the claims handling process I observed from Allstate prioritized minimizing payouts, often at the expense of accurately addressing documented storm damage. [00:07:05] I am so happy that that adjuster attended the hearing and gave us an inside look into what's actually happening with these insurance companies, what kind of directives, what kind of orders these adjusters are given how they're punished if their estimates are too high. [00:07:23] You know, two, friendly to their own customers who dutifully pay their premiums every single month with the idea that they will be made whole if disaster strikes. So Mike Fiato, the vice president and chief claims officer at Allstate, [00:07:41] did dispute these claims. Okay. Miguel's story in particular was disputed and said the difference in the estimates was due to claims of cosmetic damages. Interesting. But Hawley continued to press him. Let's see how that went down. [00:07:57] I noticed that you said in your written testimony. You just repeated it. Here, let me make sure I get this right. I'm going to quote you now we live and breathe our motto. Our customer's worst day needs to be our best. I have to tell you, Mr. Fiato, based on the testimony I've heard today, based on the witness statements I've taken from witnesses, it sounds like to me that it really ought to be amended to say that our customer's [00:08:15] worst day is your big profit opportunity. I mean, we've just heard testimony here. Sworn testimony from multiple adjusters that your company ordered them to delete or alter damage estimates to reduce payouts and to make you profits. It sounds to me like you're running a system of institutionalized fraud. [00:08:32] Yeah. That would that would be incorrect, Senator. That's not what we do. You made $4.6 billion in profits, and your CEO, Tom Wilson, last year was paid $26 million. Now, Miss Miggle can't get her claim paid out, but Tom Wilson, [00:08:51] whoever the heck he is, gets $26 million. I mean, that's really extraordinary. Sure is it? Sure is. I wish more Republicans were like Josh Hawley, because maybe then there would be [00:09:06] some possibility of passing legislation that reins in the greed that we see in this country, the corporate greed that we see in this country. And look, I I've changed I'm sure a lot of you have noticed My views on a few things I wouldn't even say changed. [00:09:23] I've moderated my views on some things. Like, I don't begrudge companies for being successful, right? If they're successful, they're able to keep their employees. They're able to provide benefits that it's good when a company is successful, but not when it comes at a cost to their customers and to the American people. [00:09:42] And that's the kind of greed that I'm referring to. When you screw over your own customers because you want to maximize profits, that's when we've got a problem, that's when we've got a problem. And quite frankly, I'm real tired of us having to subsidize [00:10:02] all of these various corporations that pay full time workers so little or play all these little tricks so they're not considered full time and don't get healthcare benefits. So Americans end up subsidizing those companies by providing, you know, [00:10:19] whatever social safety net we have to their employees. That's the kind of greed that I have a massive problem with. Now. It's particularly extraordinary considering that homeowners insurance rates have risen dramatically. [00:10:35] I'm sure you've experienced it if you own a home. From an average of $2,653 annually in 2021 to $3303 in 2024, that's a 24% increase, more than twice as fast as the rate of inflation in the same time frame. [00:10:54] Some consumers faced a substantially larger premium increases than the national average. People in places impacted significantly by climate change, for instance, obviously are going to either get dropped by their insurer, which has been a big problem in Florida and California, [00:11:12] or they're just going to have to suck it up and pay much higher premiums. So all of the main players, the big players who have led to the climate emergency, Continue to privatize the gains, socialize the losses. [00:11:29] We're paying a big price here. And unfortunately, despite what we're hearing from a Republican, Josh Hawley, in the Senate, I don't really think much is going to come out of this hearing. I hate to say it, I really do. Because we've seen so many of these hearings. Josh Hawley led a hearing about credit card fees and insanely high [00:11:51] credit card interest rates. What was the follow up to that? That was a fun hearing to listen to. But did anything come of that? Was any legislation passed? No. So it's nice to hear politicians either sincerely [00:12:08] or pretend to care about these issues. But I'm not going to believe them. And it's hard to give them credit if they never actually do anything about it. So we'll see. But again, I'm not holding my breath. Every time you ring the bell below, an angel gets its wings. [00:12:25] Totally not true. But it does keep you updated on our live shows.