SCOTUS Upholds Katrina Fraud Verdict Against State Farm

redeemed.man · Dec 9, 2016

As U.S. taxpayers we should all be outraged. State Farm policyholders should be even angrier. When you have a fire, storm, or water damage claim at your home or business this is an example of the mentality you are up against.

A brief explanation of the fraud committed against us (taxpayers) by State Farm follows. State Farm agents sell standard State Farm homeowners policies to homeowners and also sell flood insurance policies through the federally administered National Flood Insurance Program. When claims come in like the Hurricane Katrina claims they are assigned to a State Farm staff adjuster or an independent contractor adjuster working under the direction of State Farm. The State Farm adjusters, executives, managers, and "independent" engineers conspired to call these claims flood damage which is paid for by the NFIP rather than by State Farm even when the damage was clearly caused by wind which is covered under the State Farm policy. To make matters worse not only did State Farm defraud the federal government of the money for the damages but they then billed the NFIP for the costs and expenses of their corrupt claims adjusters and engineers.

This behavior is not isolated to State Farm. Many insurers practice "bad faith" tactics but seldom are they held accountable for fraud.

http://www.insurancejournal.com/news/national/2016/12/06/434413.htm

http://www.cinewsnow.com/news/local...aud-verdict-against-State-Farm-405062756.html

Full disclosure: I am a Public Adjuster and battle State Farm and other insurers on a daily basis.

sbmike · Dec 9, 2016

I dropped them when they tried to raise my homeowner's insurance by 30% with no claims in the 30+ years I was with them and no changes in coverage. Went with another company at half the rate for the same coverage and have not looked back. Good hands my rear end!

redeemed.man · Dec 9, 2016

sbmike said:
I dropped them when they tried to raise my homeowner's insurance by 30% with no claims in the 30+ years I was with them and no changes in coverage. Went with another company at half the rate for the same coverage and have not looked back. Good hands my rear end!

Good neighbor is who State Farm claims to be, Allstate claims to be the "good hands" people. As you are aware neither of these companies will ever be accused of stating truth in their advertising.

Stevie Boy · Dec 9, 2016

sbmike said:
I dropped them when they tried to raise my homeowner's insurance by 30% with no claims in the 30+ years I was with them and no changes in coverage. Went with another company at half the rate for the same coverage and have not looked back. Good hands my rear end!

I think that's Allstate. State Farm's mantra is "like a good neighbor"....

Edit: Too slow at the keyboard at my age.

EL1227 · Dec 9, 2016

Someone has to pay for the advertising ...

Always buy insurance through an independent broker, whether it's life, auto, homeowners, or even flood insurance.

Brokers should always find you the best coverage for the price you are willing to pay. I've went through the same broker for 35+ years and they have never recommended State Farm or AllState or any other 'name brand' for that matter for any of my insurance needs. And, I've always gotten good, no-questions-asked personal service when filing a claim. And it makes it easier to switch coverage if you are dissatisfied with a particular plan.

ohen cepel · Dec 9, 2016

8-0 decision, that is a thumping!

And to think, the libs kept saying an 8 person court couldn't do anything.......

Doobie · Dec 9, 2016

EL1227 said:
Always buy insurance through an independent broker, whether it's life, auto, homeowners, or even flood insurance.

Brokers should always find you the best coverage for the price you are willing to pay. I've went through the same broker for 35+ years and they have never recommended State Farm or AllState or any other 'name brand' for that matter for any of my insurance needs. And, I've always gotten good, no-questions-asked personal service when filing a claim. And it makes it easier to switch coverage if you are dissatisfied with a particular plan.

Any recommendations?
I currently have Erie for home and auto...I've only had one issue(a woman backed into the rear bed side of my truck at a Walmart). My agent told me that since it was private property and no police responded, it was my word against the woman who hit me and vice versa, so I'd have to turn my damage in on my insurance and that the woman would have to turn her damage in on her insurance. Needless to say, my truck still has a big dent in it because I refused to use my "accident forgiveness" or pay money out of my pocket for something that wasn't my fault.

redeemed.man · Dec 9, 2016

Doobie said:
Any recommendations?
I currently have Erie for home and auto...I've only had one issue(a woman backed into the rear bed side of my truck at a Walmart). My agent told me that since it was private property and no police responded, it was my word against the woman who hit me and vice versa, so I'd have to turn my damage in on my insurance and that the woman would have to turn her damage in on her insurance. Needless to say, my truck still has a big dent in it because I refused to use my "accident forgiveness" or pay money out of my pocket for something that wasn't my fault.

Rule of thumb: "If they are advertising on TV they aren't paying claims fairly". I handle many hundreds of claims per year and can say from experience that this statement is absolutely true. There are few insurers I would recommend and I won't post them publicly. PM me if you are really ready to jump ship for a new insurer. I typically don't comment publicly on the countless examples of insurers operating in bad faith but this case is just too egregious to remain silent.

EL1227 · Dec 10, 2016

boundlessdyad said:
Rule of thumb: "If they are advertising on TV they aren't paying claims fairly". I handle many hundreds of claims per year and can say from experience that this statement is absolutely true. There are few insurers I would recommend and I won't post them publicly. PM me if you are really ready to jump ship for a new insurer. I typically don't comment publicly on the countless examples of insurers operating in bad faith but this case is just too egregious to remain silent.

A good example of an honest broker who is acting in his clients best interest as opposed to the stock price of their employer.

redeemed.man · Dec 10, 2016

EL1227 said:
A good example of an honest broker who is acting in his clients best interest as opposed to the stock price of their employer.

Well actually, a broker I am not. I fight insurance companies for a living, I don't sell their product. I try not to publicly bash insurance companies as most do a good job showing their true face when someone has their first claim of any significance. It is remarkable how many think they have "good insurance" until they file a claim. The most expensive policy with the "best coverage" does you no good if your insurer doesn't want to pay your claim properly. I have dealt with a countless number of insurers and I can't name more than a handful that I would recommend. Additionally one that is decent today may be horrible five years from now when corporate directives change internal practices. One thing is absolutely certain, any insurer that says: like a good neighbor, on your side, you are in good hands, etc. is lying. You can't answer to shareholders above policyholders and actually honor those statements.

redeemed.man · Dec 10, 2016

These practices are widespread and continuous. These corporate executives commit criminal acts and get slapped on the wrist in the few isolated incidents in which they are caught. Hurricane Sandy was another example of this on a tremendously widespread basis. As long as they keep padding the pockets of the slimy politicians this behavior will continue. There is no end in sight.

http://www.cbsnews.com/news/fema-evidence-of-fraud-in-hurricane-sandy-reports/

K31 · Dec 10, 2016

It couldn't happen to a nicer company.

redeemed.man · Dec 10, 2016

Engineering firm involved in extensive Hurricane Sandy insurance fraud. I am sure the engineers changed the reports to minimize claim payouts on their own with no direction or pressure from insurers...

http://www.bizjournals.com/newyork/...land-engineering-charged-hurricane-sandy.html

redeemed.man · Dec 10, 2016

Allstate widely known as the worst insurer in America (not my words), google the American Association for Justice's 10 worst insurers.

Also see: http://www.allstatevsrobinsons.com/allstate

nmyers · Dec 10, 2016

After having problems with, & dropping, 5 consecutive insurance companies, I switched to an independent broker, & couldn't be happier. With thousands of customers who could be switched en masse to another company, a broker has a lot of leverage.

I once talked to an insurance adjuster who worked for a large company about homeowners insurance; she told me, "In my entire career, I have never given a homeowner who sustained major damage the full value of his loss." That seems to be the philosophy of the industry.

redeemed.man · Dec 16, 2016

State Farm is going on quite the crime spree.

http://www.propertycasualty360.com/...ium=EMC-Email_editorial&utm_campaign=12162016

SCOTUS Upholds Katrina Fraud Verdict Against State Farm

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