Have you been ripped off by State Farm insurance?

Robert Blackmon writes:

Rob, I, George E. Nixon, filed my insurance complaint against the State Farm Insurance Company w/ State Farm, the Georgia Insurance Commissioner and the Better Business Bureau. I canceled all of insurance policies with them effective 5 October 2006. I had been insured with State Farm since 1986. I had insured my three automobiles and my two Mortgage-free houses. I had my first complaint filed with my local state farm agent in January 2000. My Mother had passed away on 14 January 1999, and I had filed with the local State Farm Agent the necessary papers to update my policies (I delivered a certified copy of her death certificate, a copy of her probated will (I am the Executor), a copy of the deed at 810 East Boundary, Augusta, GA, the property my mother and I had purchased together in March of 1958.

In January of 2001, the State Farm Agency sent to the 810 East Boundary address, a threatening notice to my deceased Mother to come into their office about the property insurance. My tenant at 810 East Boundary, Ms. Teresa Moore, gave me the letter. This was the first incident; I went to the State Farm Agent's office, tearfully questioning, why would they try sending such a letter to my deceased Mother, the policies are in my name and they knew my mother is deceased. As Landlord, since August 2000, I have rented this property under the HUD Section 8 program. I thought everything was all ironed out. The State Farm Agent, Preston Thomas then apologized for the incident (I have always paid the insurance policies in person). Before her death, my Mother became blind in 1997 and later was on kidney dialysis; all of the insurance policies had been in my name. My mother and I had had purchase this property in March of 1958.

A second incident occurred, sending yet another notice for my deceased mother to come into the office. I went calmly to the office to talk with Mr. Preston Thomas. He stated that that's the way the policy was written and he couldn't change it. Gathering my composure, I stated to Mr. Thomas that from now on, I will only pay my portion of this so called two-party policy – George E. Nixon & Clara E. Nixon. Believe it or not, a 'light bulb' went off in his dim-witted head and he had the refund check rewritten in my name so I could cash it. All was forgiven and I continued being a State Farm customer. Preston Thomas retired; then along came this new agent, Don Brandenburg.

In 2003, I had overpaid the State Farm insurance premium on the 810 East Boundary property and they sent me a multiple party refund check, including my name George Nixon, my brother’s name, Thomas Nixon, and my brother-in-law’s name, George Turner. Financial institutions in the State of Georgia do not honor multiple party checks. I had brought this information to the attention of the State Farm Agent, Don Brandenburg. He indicated he did not know I owned the property. I had brought all pertinent documents (copies of the deed, my mother’s death certificate to him) on at least three occasions. He indicated there was nothing he could do; and he thought I didn’t own the property. He indicted he would need me to bring him a copy of the deed again. Well, needless to say I was insulted, yet again.

Another item, over the years on several occasions, I had been noticing on my insurance renewal billing, the policies deductibles dropping, thereby causing an increase in my premium payments. Sometimes, I would catch these incidents late, reported it to their office and they would correct the policy premium payments. In August of a certain year, after a policy increase jumped up on my old family car, I told State Farm that I would be leaving and cancelling my policies with them. I happened to call MetLife and a former State Farm employee assisted me. She guided me and explained the unknown intricate habits of State Farm and how the writings in their policies could be misleading. She demonstrated how much more superior and factual MetLife policies were. I signed with MetLife and canceled my State Farm policies.

State Farm sent refunds checks for each of my policies; however, they again sent me a multiple-party refund check for the rental property, 810 East Boundary, Augusta, GA. Once, again, I cannot cash multiple-party check at any local bank; and neither could State Farm, in any instance, prosecute such a multiple-party fire damage claim that would have been filed to State Farm Fire Insurance Area on the rental property.

Let me explain clearly here, the 810 East Boundary, property is where the State Farm property incidents kept coming up. My mother and I purchased that property in March of 1958 and the mortgage was paid it off in 1997. Since my mother passing on 14 January 1999; in her Will, I am designated Executor of her estate, the Will was probated by the Superior Court Judge, and this process was attended by me and my attorney. Days after that and processing her Will with my attorney and filing papers at the court house, is when I took all of the necessary paperwork to State Farm.

Yet another item here, I have been HUD certified as a public housing property manager since 1979. My property rental lease at 810 East Boundary has been with my tenant, Ms Moore, since August 2000; and it has always been a one-landlord-party lease (me as landlord and property owner) and Ms Teresa Moore, as Tenant. The local HUD agency has recognized that in their Section 8 Program. Now, I am very suspicious that the Fire Insurance Service Area of State Farm Mutual Company (which sends the non-cashable multiple party check pay-outs) maintains non-prosecutable/executable fire policies on rental property home-owners. No claims of any kind to the multiple party insured can be paid nor refund checks cashed. Mr. Brandenburg unsuccessful attempted to explain to me that I needed to bring the evidence of property ownership again to his office. THREE OR MORE TIMES IS ENOUGH!!! This is harassment! They (State Farm) got that information from me; plus its public record stuff! I gave State Farm copies of my mother's death certificate, a copy of her probated the will, a copy of the property deed – They, State Farm Fire Insurance Area, if being of sound business principles, would have never created and accepted such a policy they could not thoroughly execute in the first place. If the policy was out of context and claim considerations could not be affected, why would they have drawn/written it up???

If I didn't own the property, would the local Housing Authority, a HUD agency, have accepted my property into the HUD Section 8 Program? I didn't need to waste another minute with State Farm and I have told my relatives to leave them alone - get away, drop this fraudulent or ignorant company!

Now, I had requested the Georgia Insurance Commissioner, launch an investigation, the external quality type, to look into their ) be launched into the policy prosecuting procedures of the State Farm Fire Insurance Area, where and when their fire policies are written for rental property owners who own outright, their rental properties.

The final and most important request is that State Farm is to send me an cashable insurance refund check (Single Party, me only, George E. Nixon- the only one they have known and the only one that have ever sent them insurance premium payments for this property). I have no idea where their stupidity comes from.

Regards,

George E. Nixon

[Phone numbers withheld to protect privacy}

PS. Rob, if this website is a scam for ripping off, ripped off persons, then welcome to my world of taking these types of scammers down!!!

Pamela writes to us:

A strong storm blew through on Saturday June 18th peeling the tin back on my roof. I immediately call State Farm and get a lazy cow on the phone who tell me that State Farm will allow me 4 sheets of tin to fix my roof...approximately $300 without even coming out to look or send an agent out. I called back and told them this was unacceptable and their response was "State Farm is under a lot of pressure since the tornadoes in April, we are not trying to minimize your claim we are trying to settle all claims by phone"...a roof by phone? meanwhile it is supposed to rain today and the inside of my house will suffer damage since i have no tin on my roof. I live alone and have no way to tarp and have no help. These people are slimy salespeople. I hope they all burn in hell. My agent is Mr. Tyree Petitis South Memorial Parkway, Huntsville, AL.

Leigh weighs in with this unbelievable incident...read it all the way through:

In 2006, my 18-year-old daughter and 13-year-old son were in a 5 mph fender bender with a lady (I’ll call her Donna) insured through State Farm. In a construction site, she changed lanes without signaling and hit my daughter’s front right bumper. My daughter was already in the lane. Since the damage amounted to a cracked signal light on my daughter’s car, and no damage that the naked eye could see on Donna’s car, she left the scene before police could be contacted. The car my daughter was driving was not hers, but belonged to her aunt. We went along merrily until one month later when I get a phone call from Donna saying that, in fact, she DID have damage to her bumper in the amount of 1,800 and wanted me to write her a check. How she got our number, I don’t know as there was no information exchanged at the scene. Being suspicious, I refused to pay as I felt that doing so would admit liability. I suggested it be reported to the insurance company. We get no calls or anything, so I assume nothing was reported at her end. Almost a year later, we get a call from State Farm letting us know that there was nearly $15,000 worth of medical bills and car damage done to their insured. How could this happen? Her back bumper was just tapped, and she was driving an Econoline van—may daughter was driving a Honda Civic. Her back window was smashed in, her bumper seared in half—damage that could only happen if she was hit by someone going at a high rate of speed. State Farm advised they will file a lawsuit to seek reimbursement from us. We got an attorney. He says we don’t have a leg to stand on since there were no photos, the Honda was long sold off, and there was no police report. We head to arbitration. The arbitrator sides with Donna who is older. There was no evidence to support my daughter’s claim that SHE got run into, and they can’t take her brother’s testimony because he is related. We threaten to go before a jury. Our attorney advises us that State Farm has very high-powered attorneys and it could be costly for us to fight it. We cut our losses and took it in the backside. We have been paying $200 per month ever since and have our balance down to $1,400 (basically interest at this point). I did later find out that State Farm indeed had photos of my daughter’s car. She was working when they came by to ask her if they could photograph her car one evening. Strangely enough, they denied having the photos and wouldn’t let us see the file unless we got a subpoena. Long story short…if you are ever hit by a State Farm insured, make sure the police are there, you take photos and get statements. They are a no-fault company and will pay their insured whatever, then will come after the other party full on. Until I go to my grave, I will find every opportunity to smear them.

Hey, I just got in a accident 3 weeks ago I have full coverage and a super rare car. Acura Integra type r that was a show car for the past 2 years my insurance company is State Farm. long story short. After the accident car went to collision center someone broke in stole my whole interior =(. Just today I had the insurance company call me to give me the quote they offered me $3900 and $1000 deductible so $2900. I laughed and asked them if that was just for the wheels as my car goes for average online and locally for $13,000 and that’s in shit condition and good conditions up to $20 000, and mine was a perfect show car condition. I told them my car is worth so much more just the seats which are original factory Acura seats are valued at $4000 I sat on garbage bags to keep my seats new lol. They said as the car was stolen we got no proof you had those seats I LAUGHED I asked her well what the fuck did I sit on buckets maybe a couch she said you could have had other seats well how am I supposed to proof to you that I had those seats I told her I will show her pictures of those in my car as well as online pictures as my car was photographed at shows even get the previous owner I bought the car from and the owner of the shop that saw my car as a whole before it got stolen. she said you cant proof that those pictures are your car even though I got the group sticker the car traveled with on the windshield she just kept on blabbing about MARKET VALUE MARKET VALUE bull shit. So I wanted to search my options online and I stumbled across your little website so I decided to write my story to you I hope we can do something as I would really want these assholes brought down and would love to ruin there reputation. I have attached a picture of my baby to this email and you can contact me at cells11 (at) live.com

Well, folks, now you know why I FINALLY switched my insurance to Mercury (here in California), where by grouping my policies (auto + home), Mercury was able to give me BETTER coverage than State Farm at HALF THE RATE. I kid you not.

Read what RB has had to go through:

Rob,

Friday night, 4:00pm, wife and I notice water outside the front door. After some investigation, determined it was coming from inside a wall in the coat closet, on the other side of the entryway by the front door. At 4:30pm I called my agent who asked if I wanted “Servpro” to come out and do whatever it is they do. I declined saying I’d look into it further. By 5:15pm, we knew we were in over our head. I called and left a message for my agent and then contacted a local flood/restoration company. Naturally, I assumed my HOI would cover a slab leak or at least the ensuing damage. Around 5:30 or so I was on the phone starting the claim process with their claim center. I was told a member of their claims dept should contact me to explain the process within a couple hours. Meanwhile, the flood and restoration company was busy tearing out the wet drywall exposing the leaking pipe. A couple hours later, I initiated a second call. I was greeted by someone who ‘was so glad I called’ and could connect me to the claims department. The claims department indicated they couldn’t authorize any work (I had contacted a local plumber and scheduled him to come out on Saturday morning for repair and/or leak detection) until the damage had been inspected by their adjuster. When I asked when the adjuster would be out, I was told he was off for the weekend and most likely would return my call Monday morning. The claims rep stated that only the adjuster would know my policy and its coverages and exclusions and that the amount of coverage could not be determined without an investigation. I tried my agent again via email and phone, no answer either way. Like a good neighbor, State Farm was…out at the lake fishing or whatever.

Meanwhile, the flood and restoration guy left his blowers blowing and his dehumidifiers dehumidifying.

Saturday morning, the plumber confirms a slab leak but opts not to repair until we discuss with the insurance company. He suspects the leak is about 12” down, below the slab. Neither he nor the flood/restoration guy had EVER heard of a slab leak not being covered. They both indicated, in their experience, that State Farm most likely would not cover repair to the pipe itself, but, based upon what they’ve seen in the past, the insurance normally covers everything else including the drying, wet stuff rip out, slab intrusion, and rebuild. Since State Farm couldn’t tell me what was covered and not, we waited.

Sunday, while waiting, I looked up another local State Farm agent I’d met through the local chamber of commerce. I emailed her. Wouldn’t you know it, she returned my email by calling me within an hour, unlike my own agent.

Monday morning, I finally reach the adjuster. He indicates the field rep is already in the field for the day and won’t be able to assess damage until Tuesday at the earliest. The adjuster indicated that slab leaks are not covered under the policy but that the ensuing damage should be. This meant we would have to pay to cut into the slab and repair the line. At NO time did he mention the infamous ‘subsurface water’ exclusion. I reached my agent on Monday and gave him a piece of my mind. He was less than helpful and claimed to have never received my email. He admitted that he does not check voicemail messages over the weekend. At this point, I’ve made peace with the fact that I’d be paying for my deductible and the plumbing repair in its entirety. I was unsure if the tile damaged to get to the plumbing would be covered or not. Meanwhile, blowers blowing and dehumidifiers dehumidifying

Tuesday morning. The flood and restoration guy arrives and confirms the area is dried. He has done his job correctly and saved our tile from water damage. The State Farm field rep shows up. He does his thing. To his credit, he did the best he could and seemed genuinely empathetic, BUT, wait for it, State Farm has an exclusion for water originating below the surface. If the leak is 12” down, it is below the slab. Therefore, absolutely NOTHING is covered, not the primary event nor the ensuing damage.

In conversations with the adjuster, the agent, and their field rep, they all were adamant that NO ONE covers damage originating from subsurface water and that this is very well known in the industry. To which my flood and restoration guy says, “Uh, no it’s not.” My question, if it’s so well known on their common HOI policy, why the hell didn’t anyone I spoke with when I started the claims process know this??? Had I known on Friday night, I would have told the flood and restoration guy to take a hike and would have gone and rented my own blowers and dehumidifiers from home depot. Since I thought the insurance company was going to cover the loss, I assumed they needed licensed and bonded contractors to do the drying scientifically and not Joe Blow homeowner.

In my opinion, State Farm acted in bad faith by delaying the inspection process and failing to explain the coverage of my HOI policy when I explicitly explained on Friday night that I had a SLAB LEAK. If this exclusion is as well-known as they indicated, certainly their own staff would have known it when the claim was initiated.

They did offer to pay for the leak detection, which I thought was fair considering that $250 got them off the hook for the $3400 drying bill, $3000 rebuild bill, and $900 plumbing repair (more like $2400 because we opted to reroute OUT of the slab).

The ‘good’ news is that my HOI policy is up for renewal in four days. I’m shopping for a new carrier. I wonder if my mortgage company is aware that State Farm lacks this coverage? I wonder if they’d force their homeowners to look for different HOI…

Allen writes:

Hello, I saw your info on-line about Sate Farm. I recently experienced damage to my home due to the heavy snow fall the north east U.S. experienced. Both of the major gutters and the fascia board they attach to are damaged beyond repair and need to be replaced. One fell off the roof completely and the other is barely hanging and is bent beyond recovery. The attic of my house is now exposed to the elements while I await repair. My State Farm agent said the loss would be covered and after waiting 2 weeks for an adjuster I was handed a check for approximately half of what 3 contractors have estimated it would cost.

Rob's reply:

Allen, it's critical that you hand them back the check and submit your own estimates. State Farm relies on "fast pay" to pay out much lower reimbursements. This happened to me with water damage to a floor. Within a day or two, State Farm handed me a check for $6000. Unfortunately, the damage was more than double that amount. I refused the check and submitted estimates from three other vendors, in writing. State Farm revised their check and paid a total of $17K, which did cover the damage.

Never take the quick check. Always do your homework and it should work out.