More homeowners are coming forward saying State Farm is denying their water leak damage claims. CBS 8 is Working for You to find out if this is a pattern by the insurance company.
Homeowner's Experience
Mark Matthews has lived in his Chula Vista home for 25 years and has been a State Farm customer for more than 30 years without ever filing a claim.
Matthews said a hot water pipe above his kitchen started leaking on April 21, causing an estimated $20,000 in damage that flooded his dining room. "One little pipe that was just drip, drip, drip, drip, drip," said Matthews.
He and his wife called a water-damage service company and furniture movers. When the State Farm Insurance adjuster arrived, the response was immediate: "He just said straight to our face, no, we're not covering this because it's a continuous leak, which State Farm does not cover."
Matthews was shocked because the couple had never noticed any previous water leaking. "Even the report from the plumber said it was a sudden, pipe burst, but (the State Farm adjuster) wouldn't have any of that," said Matthews.
Pattern of Denials
Matthews emailed CBS 8 after the station aired a similar story involving a homeowner in University City who was denied by State Farm for damage caused by a leaky roof.
CBS 8 reached out to Amy Bach, a consumer advocate at United Policyholders. "We are seeing a pattern of State Farm denying water damage claims on the grounds that it was a gradual seepage or continuous leakage, as opposed to a sudden accidental event," Bach explained.
Bach noted that if attorneys find State Farm is unfairly denying water damage claims, there could be class-action litigation. "It may be at some point that a consumer like this gentleman would end up being a plaintiff in a class-action suit with a whole bunch of other people who've been similarly harmed," she said.
State Farm's Response
State Farm emailed CBS 8 the following statement:
"Due to our customer privacy policy, we can't speak to the specifics of a claim. Our approach to claims has always been that each claim is unique and handled on its individual merits. With any claim, State Farm seeks to provide our customers all benefits to which they are entitled within the terms of the insurance policy. As part of our commitment to our customers, we welcome additional information that may help us identify any applicable benefit under the policy."
Financial Impact
Matthews said he may have to take out a home equity line of credit to repair the water damage to his home. "State Farm is not looking out for their customers. They're just looking out for their bottom line," said Matthews.
