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Customers: Insurer Not Paying Our Hail Claims
State Farm Says It Will Allow Nonbinding Arbitration
POSTED: 9:15 pm EST February 12, 2007
FISHERS, Ind. -- After the hailstorm of April 14 -- one of the most destructive days in Indiana history -- many of Mike McDermott's neighbors in Fishers received insurance money to repair roof damage.The claim by McDermott, whose home is insured by State Farm, was denied. He and some other State Farm customers in the Indianapolis area say the insurer is refusing to deal with damage related to the storm."We are still looking to get our roof replaced. We are still fighting for it," McDermott told Call 6 for Help's Rafael Sanchez reported.Of the claims submitted by 18 of his nearest neighbors, 14 were approved. None of those 14 neighbors is insured by State Farm.The four whose claims were rejected are covered by State Farm, like McDermott.McDermott said contractors gave him estimates saying his roof has $5,000 worth of damage. State Farm, however, said his shingles show no sign of the storm."That's why you pay your premiums -- you're hoping that if, someday, something bad happens, they got your back. And they don't," McDermott said.Similar stories are surfacing in other neighborhoods.Richard Bacon, a State Farm customer since 1965, said his home was damaged in the April 14 hailstorm."All my neighbors had hail damage on all sides of the roofs, and they got their roofs replaced," Bacon said.He said he received a check for damages to a portion of his roof and windows. When he asked for a revaluation, he said, an adjuster told him the home had no damage."I'm very disappointed in the attitude that State Farm has taken," Bacon said.State Farm said it has responded to 45,000 claims in the Indianapolis area relating to the April 14 storm and has closed 85 percent of them with payment, totaling $220 million.The company said that in 7,000 of the claims, it found no damage, or the deductible was more than the loss, or the claim was dropped.State Farm said it will allow for nonbinding arbitration for customers who disagree with the company's claims decisions. In nonbinding arbitration, if a policyholder disagrees with the arbitration outcome, the policyholder can still file a lawsuit.One contractor, Regency Homes, said it won't make house visits for State Farm customers. Regency Homes owner Tony Courtney said he had customers who found State Farm to be helpful immediately after the April 14 storm, but he said customers who filed with State Farm later were rejected."Bottom line is this: It's damaged, they paid for the insurance, and they need to get what they paid for," Courtney said.Carol Mihalik, who oversees the consumer protection unit of the state Department of Insurance, said she is talking with State Farm officials and monitoring the company's claims process.People who have complaints about their claims can file a complaint with the Department of Insurance at 800-622-4461.
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