TWIA Whistleblower Alleges Hurricane Beryl Claim Estimates Were Secretly Reduced
A federal lawsuit filed in Galveston alleges that insurance damage estimates prepared following Hurricane Beryl were secretly reduced before being provided to Texas Windstorm Insurance Association (TWIA) policyholders, in some cases by more than 60%.
The lawsuit, filed on behalf of three Texas homeowners, names TWIA, claims-related companies, and individuals as defendants and seeks relief under the federal Racketeer Influenced and Corrupt Organizations Act (RICO). The allegations are based in part on information provided by a field adjuster who discovered substantial differences between estimates originally prepared following property inspections and estimates later associated with that work.
The Hodge Law Firm and Eiland & Bonnin PC are representing the homeowners in the litigation. The allegations have received coverage from multiple news organizations, including KPRC 2 / Click2Houston and InsuranceNewsNet.
The allegations have not been adjudicated, and the defendants may dispute them. TWIA has stated publicly that it does not comment on active or potential litigation and that its claim-adjusting procedures comply with applicable Texas and federal laws.
What Did the TWIA Whistleblower Reportedly Discover?
According to the lawsuit and information released in connection with the case, a field adjuster inspected properties damaged by Hurricane Beryl and prepared estimates of the cost of repairing that damage.
Questions reportedly arose after TWIA policyholders raised concerns about estimates they had received. A review of the claim information revealed substantial differences between estimates originally prepared following property inspections and estimates later associated with the field adjuster’s work.
According to information released by the attorneys, 29 Hurricane Beryl damage estimates were reviewed, and significant discrepancies were identified in 23 of them. Some of the estimates had allegedly been reduced substantially from the amounts originally calculated.
Attorney Shaun Hodge, founder of The Hodge Law Firm, is one of the attorneys representing the homeowners and has spoken publicly about the allegations and their potential impact on Texas policyholders.
How Much Were the Hurricane Beryl Estimates Allegedly Reduced?
The lawsuit identifies three TWIA policyholders whose properties were damaged during Hurricane Beryl and whose insurance estimates were allegedly changed after their initial field inspections.
As reported by Click2Houston, one homeowner’s original estimate was approximately $90,458 before allegedly being reduced to approximately $30,817. Another estimate reportedly declined from approximately $55,406 to $31,013, while a third was allegedly reduced from approximately $22,463 to $10,189.
These represent substantial differences between the amounts allegedly documented following the original property inspections and the estimates ultimately associated with the claims.
For homeowners recovering from a hurricane, the difference between an initial damage assessment and the amount ultimately recognized by an insurer can have a significant impact on their ability to repair their property.
Texas property owners who receive substantially less than they believe is necessary to repair covered storm damage may want to learn more about underpaid hurricane insurance claims and their options for challenging an insurer’s determination.
How Were the Estimates Allegedly Changed?
According to the allegations in the lawsuit, field adjusters inspected hurricane-damaged properties and prepared repair estimates using Xactimate, software commonly used within the insurance industry to estimate property repair costs.
The complaint alleges that some of those estimates were subsequently altered after the field inspections and initial estimates had been completed. According to the lawsuit, the field adjuster estimates were materially changed by parties that did not inspect the properties.
The lawsuit further alleges that David DeVilbiss, who was associated with Leading Edge Claims Service, made changes to estimates while the original field adjuster remained identified on the reports. According to the allegations, the disputed changes were not made or authorized by the field adjuster.
These are allegations contained in pending litigation and have not been established by a court.
What Does the Federal Lawsuit Against TWIA Allege?
The lawsuit alleges that TWIA and other defendants participated in a broader scheme involving Hurricane Beryl insurance claims.
The action seeks relief under the federal RICO statute and alleges, among other things, that damage estimates were reduced after field adjusters inspected affected properties and that the altered estimates continued to appear as though they were the work of the original adjusters.
The lawsuit currently names three homeowners as plaintiffs, but attorneys involved in the case believe the alleged conduct could extend beyond those individual claims.
The litigation comes after Hurricane Beryl struck the Texas coast in July 2024, causing extensive property damage and generating tens of thousands of TWIA insurance claims.
Texas homeowners dealing with storm-related insurance disputes can learn more about Texas hurricane damage insurance claims and the insurance claim process.
How Many TWIA Policyholders Could Be Affected?
The ultimate scope of the litigation remains unknown.
More than 30,000 policyholders submitted claims to TWIA following Hurricane Beryl. The Hodge Law Firm has publicly stated that it believes thousands of homeowners could potentially have been affected by the conduct alleged in the lawsuit.
“This is not a one-off,” Hodge told The Daily News when discussing the case. “We believe this was something that was carried out across all the claims filed after Hurricane Beryl.“
Whether the alleged conduct occurred in other claims and how many policyholders, if any, were affected are issues that will ultimately need to be determined through the litigation and investigation.
What Should Hurricane Beryl Policyholders Look For?
The allegations raise an important question for some Hurricane Beryl policyholders: Does the estimate associated with your claim accurately reflect the work performed by the field adjuster who inspected your property?
Every insurance claim is different, and a difference between an initial estimate and a final claim determination does not by itself establish wrongdoing. Insurance estimates can change for legitimate reasons during the adjustment process.
However, a policyholder may want to take a closer look at their claim file if there are unexplained discrepancies, if an adjuster communicated a substantially different assessment of the damage, or if the amount offered appears inconsistent with the documented cost of repairing covered damage.
Documents that may be relevant include:
- The insurance company’s estimate
- Inspection reports and photographs
- Contractor estimates
- Communications with the field adjuster or insurance company
- Payment and coverage correspondence
- Revised or supplemental estimates
Policyholders can also learn more about denied, delayed and underpaid insurance claims and the potential issues that can arise during the property insurance claims process.
Following the TWIA Hurricane Beryl Litigation
The TWIA lawsuit is pending in the United States District Court for the Southern District of Texas, Galveston Division.
The Hodge Law Firm has established StormFraud.com to provide information concerning the allegations and litigation, including court filings, media coverage and significant developments as they become available.
VIEW THE TWIA COURT FILINGS AND LITIGATION UPDATES →
Individuals can also review recent coverage of the litigation through the Storm Fraud News & Press page.
The litigation remains ongoing. Allegations made in the complaint have not necessarily been adjudicated and may be disputed by the defendants.
Questions About a Hurricane Beryl Insurance Claim?
The Hodge Law Firm represents policyholders in disputes involving hurricane and other property insurance claims. If you filed a TWIA claim following Hurricane Beryl and have questions or concerns about how your claim was evaluated or paid, contact The Hodge Law Firm at 409-762-5000 to discuss your claim and learn more about your legal options.
