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Writer's pictureInge Johnstone

Is State Farm Underpaying Claims For Roof Damage Because It Thinks it Is Paying “Too Much” for Roofs?



State Farm policyholders rely on State Farm to pay what it owes under its policies…no more…no less. In addition, the amount that State Farm pays should be based on the actual covered damage under the policy, not on some reduced amount designed to lower the amount that State Farm is paying for roof coverage. However, publicly filed deposition testimony reveals that a State Farm document states: 


P&C claims is focusing on what we can do to lower our indemnity payments related to Roofs. Last year we had an indemnity over $3.5 Billion dollars and a total of $16.6 Billion over the last 7 years for the Enterprise on roofing.


Is this legitimate for State Farm to do or not? We don’t know yet, but are investigating State Farm’s practices to make sure that State Farm is not placing its bottom line over the interests of its policyholders in its claims practices relating to roofs. Let us know what you think. 

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