I watched your report on World News tonight and feel a need to respond. I worked for seven months on Hurricane Katrina in the New Orleans area and had the opportunity to see first hand the amount and types of damage. I have been an independent adjuster for approximately 10 years, have a background in engineering and construction and feel the views presented tonight were unfairly biased against State Farm. It was my experience that State Farm was more than generous and paid many claims they did not actually need to pay. I also was involved in many of the reinspections and reviewed many of the engineering reports. Many of these reports were compiled by persons other than qualified structural engineers and stated "in my opinion" rather than quote the actual statistics and engineering data. In one report, the bricks had been "blown off the house" and yet the shingles on the roof were still intact - how would an engineer expain this? The engineers report stated the damage to the bricks were the result of wind damage, even though the attic was full of flood debris. I feel World News did a great injustice to State Farm by airing this report before doing any investigation into the facts. Not to knock these two young women, but are they qualified to read and understand engineering reports? After the facts are investigated, will World News then air the results of the completed investigation if the results are in favor of State Farm. Somehow, I don't think so ........ Also, to address the "shredding" truck - since the protection of everyones privacy has become such a huge issue, it is customary to destroy any unused documents that contain a persons name, address, phone number, policy number, etc. This bit was the icing on the cake, and I feel was included to mislead the viewing public. Why doesn't World News investigate, at least a little bit, some of the news it reports. How can we, the public, come to trust such reporting when some of us actually know more of the facts than are reported. I am very disappointed by World News and Charley Gibson.

STATE FARM HAS A HISTORY OF CHEATING PEOPLE IN NEED OF INSURANCE. In the Northridge earthquake here several years ago, they did the same things...they used every tactic not avoid paying claims or to underpay claims. This is a chronic business posture for them. They are sued over and over and the courts determine they are guilty, but nothing is ever done, because they are big business and
get away with it. They have sleasy lawyers on retainer to work the lawsuits to make even the lawsuits too protracted and costly for people to endure. It's a racket with them.
I hope the bad press you are giving them changes things, but I doubt it will. It is their business strategy. Once, a document was obtained through a court proceeding stating that they
are to deny and reject all claims under $5,000 because it would not pay the claimant to get an attorney to press for it, and the combined costs of denying such claims would be an extraordinary windfall to the bottom line of State Farm. What can be said for a company that takes the money of people for insurance and then sticks it to them without mercy and without guilt when they need to make a claim?

STATE FARM HAS ALWAYS STOOD BEHHING THEIR POLICIES AND PAID MY CLAIM IN FULL. I AM SO GLAD I HAD STATE FARM COVERAGE AND A GREAT STATE FARM AGENT TO HELP ME REBUILD.

Please take note that the ABC report was about a situation in Mississippi, not New Orleans. The New Orleans' tragedy was the result of failed levees. The Mississippi coast damage was caused directly by the hurricane wind and, later, storm surge.

ditto's to Bud Monk! You are right on the $

I had problem with state farm had a mold problem.toxic mold in my ceiling and was left to fend for myself, they said they don't cover it.talk to an lawyer but he said it was hard to fight against big business, we have been paying insurance for 35 years but it doesn't seem like it covers anything. we are suppose to have full coverage, try to contact the insurance commissioner, for help ,he was no help. been fighting to get help for 4 years and can't seem to find anyone to help,

State Farm's unethical practices are not restricted to homeowners' claim. I have been fighting them for over 4 1/2 years without an attorney regarding an automobile claim. Like the 20/20 segment, they forged my signature on a release form in an attempt to obtain my tax records. I would have gladly signed the release. but I guess its easier to have their in house staff sign a form.

My auto accident left me in a position of being unable to drive. Without ellaborating too much, although State legislatures pass laws to protect the people, State Farm has created its own law. The only means we claimants have to enforce our rights is through legal channels. State Farm realizes this. They are the cash cow. It is my opinion that they will pay part of a claim and leave a portion of the claim unpaid so that its not economically feasible to challenge.

In my particular case, I would need to pay 40k+ in legal fees to enforce my right to an expense that will amount to approximately 5k per year.

Yes, I paid my premiums and I'm entited to it. No, its not worth challenging in the Courts.

State Farm knows the system better than anyone. Shame on you for patting yourself on your back with your commercials. Shame on State Farm for denying legitimate claims. They are NOT a good neigbor. If I would have known before my accident how theyweasel out of claims, I would have moved long ago.

If my memory serves me right, a few months ago I read in a publication that ex Republican Senate majority leader Trent Lott was denied his claim by State Farm in his home state of Mississippi.

Could it be that Trent Lott now has an agenda towards State Farm for their business decision pertaining to his claim? Could he have orchestarted something like this for retribution against State Farm?

On the flipside, had State Farm honored Trent Lott's claim and denied all others would we be reading about State Farm not paying & cheating Insureds?

I wish him luck on his next auto claim if he switches to another insurer pending he currently has State Farm auto insurance.

Who will be next?

Call Farmers Insurance they get you back to where you belong!!!! State Farm has been in trouble in the past for unfair claim practice like all other ins co. Pay the people that have the coverage they will only make the rates higher to make up for the losses. Haven't the home owners suffered enough!!

After several less than satifactory interactions with State Farm, your report was the incentive for us to move all our insurance from Sate Farm after 25 years.

WE Should follow the AMish peoples lead...they dont carry insurance of any kind...When their homes burn down, all their neighbors pitch in and help re build FOR FREE!
Same goes for their health...they help each other. And their old folks..they dont have Social Security, kids bring their aging parents in to live with them when they no longer can care for selves.
This would be a great way to stick it to the Insurance Mafia..put them out of business!!!!!!!

I have been an employee of State Farm for over fifteen years. I have worked in Hurricanes' Andrew, Charlie, Jean, Francis, Ivan, Katrina and Rita. I worked the Northridge Quake, Mississipi floods, Tropical Storm allison, Oklahoma tornadoes. In many of these events I was in managemnet and I am a manager today.

I was also a manager in the Texas mold cisis of 2001-3 and I worked closely with the Rigsby sisters for over a year during that time.

During my employment, State Farm has never once ever asked to do anything illegal. To do the practices the sisters are saying Sate Farm committed would take so many people to conceal, that you could never conceal it. If an engineering firm wrote an opinion and State Farm altered it, do you not think that the engineer would speak up as a matter of his professional integrity? Furthermore, these types of disasters take literally thousands of independent adjusters and temporary clerical people like the Rigsby sisters. Why has no one else come forward?

Finally, ABC should be ashamed for the one sided piece presented last night. John Stoessel did ask Brian Ross at the end of the piece if any of these allegations could be the result of a political agenda by the Rigsby's famously crooked attorney. It was also mentioned that State Farm paid over a billion dollars in Mississippi and that a recent court ruling found that water was not covered under the standard home owners policy. What was Brian Ross's reply? "We are not looking into that angle of the story."

Great journalistic instincts Brian, lets not get the whole story, just the one from Trent Lotts' brother-in-law. You should be very proud.

Your report was about Mississipi.
What about Louisiana and New Orleans? Wind can be very freaky
aand although water damage is evident...in Katrina, there had to be wind damage everywhere.

Corporate America get worse minute
by minute. A.Nedelec

As a waterfront property owner it's hard to get the vast majority of the public behind our plight. What was affordable is now quickly slipping away. To wit: Sky rocketing property values and hence huge taxes, FEMA redrawing flood maps that have little to do with empirical data but rather a worst case of the worst case scenario, and lastly the insurance companies who drop policies in the middle of hurrincane season with impunity. Recent reports show the highest profit for the Insurance Industry in the last TWO years. Profits in the billions but in the state of Florida they will ask for and get 100 to 150% rate hikes. I'm all for free market but we need some oversight here and the insurance commision is not the place for it. The Insurance Pool in Florida (Citizens) is the insurer of last resort but the are required by law to charge the HIGHEST rates and thus benefit from letting SF and Allstate set the bar as high as possible. The insurance companies can be the bad guys but the state of Florida makes out in the end. Unless Florida gets cracking all these negative issues will roll into a perfect storm and run everyone except the New York lawyers and the Insurance agents out of the state. Speaking of which my agent lives on the opposite side of the bayou from me. I can see his house. His side of the bayou is covered ( by a major insurance company) and mine is not. I wonder what FEMA has to say about that?

My daughter also had threee engineers reports. The first two were in her favor so allstate finally found someone to decide in theirs. And it still goes on. The reason that the gulf has not progressed further is that people have lost their credit having to pay for property they can live in or repair. Their insurance didn't pay and there is no place to live and few places to work. Those that are repairing are doing it as they can afford on top of their other living expenses. This is an outrage that involves all the insurance companies offering coverage in the gulf. Thus the many lawsuits.

Publish the reports and then we can make a true judgment. Until then ABC just publish facts not one sided bias junk. I am from MS and all my dealing with insurance companies has been good. I hear reports insurance companies low balling estimates. Guess what contractors raise prices during this time and yes that causes the estimates to be low and they can file a supplement to claim the additional cost if it is a creditable contractor.

Another wiggle in the State Farm mess is the way that they denied another whole class of claims. IF you did have wind damage and you participate in the State of MS sponsored wind pool then State Farm had an exclusionary clause that said that in the even of wind damage, they were no longer liable. So, if the wind ripped your roof off, or a tree fell on your house and the rain poured in and destroyed the interior, well, you are out of luck. I have the head of claims on tape from the McNeil Lehrer report stating boldly "If it came from the sky then homeowners covered it. Well I guess that is true as long as you don't make a claim. We made a claim and they said "Sorry, we don't do wind damage."
Thanks ABC for at least trying to raise the public awareness to the fact that 12 months later hundreds and hundreds of people are living in trailers and State Farm, our good neighbor, is counting its blessings for the claims it did not have to pay.
We made the six hour trip to the coast (hauling gas with us), only to turn around and return to our shelter six hours away because our adjustor assured us that State Farm had no responsibility except for our displacement costs.
Good for you ABC!
PBL

State Farm only has to blame themselves. Their management is made up mainly of butt kissers and they only do what makes them look good to upper management, everthing else gets swept under the rug. The top brass have no idea what is really going on in the field. Lower level management is inexperienced and most of them have never been on a roof before but they are extremely adept at putting on the CHAPSTICK. Smooch..Smooch. Regarding State Farm paying what they owe, inconsistent at best, they do usually overpay claims because they can then go to the states insurance commisioner at year end and say, look , we paid out all this money and we now need a rate increase or we will stop writing policies in your state. Guess what, we all pay higher premiums! Even if State farm gets hung on cheating on engineer reports, they will just charge more next year to make up any fines they may have to pay. It would be alot easier if they just paid what they owed and cleaned house of all the Butt Kissers who are going to end up bankrupting the company. The lower level management gets promoted to middle management and then on to upper management and finally you have a mess like what is going on after katrina, their own fault :(

The insurance policies written by State Farm and other insurance companies are a mass of twisted, slick, and confusing text designed to keep lawyers profits up and paid claims down. Its not funny when I hear that if water comes from the ceiling after the wind tears the roof off that the claim is denied. I even heard one rumor that if the wind blew the door and windows open the damage claim was approved. This is the willy nilly, slick, scam artistry of State Farm, et al. If a home is insured for damages in a storm for both water and wind damage then it must be covered or else the insurance company should clearly say so on the first page in large type.

Perhaps more people would be sympathetic to State Farm's side of this issue if we hadn't seen or encountered so much of the same kind of treatments. An auto insurance company my ex and I had, padded our daughters auto accident information in order to get more money from us. We would not have known anything about it except she was told to get her own. When she found out how much the new insurance company was going to charge she asked for a copy of what they were basing the outragous rates on. The prospective new insurance provided a copy of the report from the previous company. Their report stated she had more accidents and speeding tickets than she really did. I told her to go to the Motor Vehicle office and get a report of her driving record. That proved there were fraudulent claims by the original insurance company. There is also another story that is perhaps more frightening than just insurance for things. It makes me wonder if other companies are engaging in fraudulent practices in an attempt to keep/make more money. How about the person whose blood test showed normal thyroid tests. But, less than 4 months after the tests, an operation was performed and the entire thyroid was found to be so badly damaged it had to be removed!!! Did the lab really run the test or were they just penning in results to save money? How many companies are playing "pad the bottom line", and at what expense? Our homes, our wallets, our very health???

I will continue to visit enjoyed the reading thanks

I have worked for State Farm for over 15 years. I handled claims during Hurricane Andrew and numerous other catastrophes.

When I started in claims, I assumed, like most of the public, that my job as an adjuster was to save the company as much as possible by trying to find any reason not to pay or to limit the amount of payment of a claim.

However, from the first day I started training I was repeatedly taught that State Farm's philosphy was to pay what we owe.

In fact, over time my management always taught me to look for ways to pay claims, not to deny them. I came to learn that much of my job was customer service. It then began to make sense to me. What does an insurance company have besides its reputation?

If State Farm routinely did things as this report has suggested, how would it possibly retain the position as the number one insurer of homes and autos in the country for so many years? Wouldn't its customers have switched long ago?

In fact, as a result of the time I spent handling claims, I decided to start my own State Farm agency. I did this, in part, because I know that I could represent an honorable company that would stand behind the policies I sell.

By the way, I attempt to have an in person meeting with every single person who purchases a homeowners policy from me to discuss their coverages. In that meeting, one of the first things I discuss are the types of losses that are not covered. One of the major ones is flood, surface water or waves, whether driven by wind or not.

This exclusion is common to every homeowners policy in America and is why there is a National Flood Insurance Program that offers flood insurance.

Has anyone ever considered that there is quite a bit of money to be made by an attorney by suing insurance companies? Why would we automatically assume that whoever they trot in front of the camera has only the purest of motives?

Cbs news had a very similar story about insurance fraud and bogus engineering reports on early show 8/16/06, it was readily available until Sunday. That report has now disappeared into cyberspace..I smell a conspiracy.

I would suggest that your "investigative" (and I use that term loosely) reporter ask Mr. Scruggs how much he is now paying the Rigsby sisters. Also, is seems to me that of all the thousands for independent adjuster that worked claims that the 2 who had a problem just happen to be family friends of Dickie Scruggs. I have worked for State Farm for almost 20 years...my husband is an agent in a small town that was heavily damaged during Katrina. During this horrific event claims adjusters for independent firms were working all over the state...some were very qualified...others were not. I would suspect that the Rigsby sisters were not as well qualified as most and are basing their statements and comments on their limited knowledge of insurance laws, policies and procedures. State Farm management and agents went to great lengths to make sure that claims that were initially denied were given a second or third look and sometimes forth look. We don't look for ways to DENY coverage.

A question that has NOT been asked or published in the national press is the fact that Senator Lott has been paid by State Farm....he just doesn't feel that he was paid enough. I'll bet he never took the time to review his coverages with his agent. Why doesn't he open up his personal files and let the world see how much he was paid and what damages he was paid for? I would guess that he would embarrassed for the general public to know just how much he has received and he is still looking for more!

According to S.F. my home had undiagnosed structural flaws that, of course, only show up after a F2 tornado. This has been since 2003. And keep in mind, you lose a minimum of 30% of your claim when you bring in a lawyer. So you've alresdy lost! Not to mention how they treat you. They call you a liar and try to make you feel like a cheat. They stole more than the last 3 years of my families life and our money. All I ever wanted was what I paid for. After this experience, I had to question what to teach my children. My advise, always find your own engineer, qualify him/her,and don't give up.
Still fighting.

Well said, Chris. Glad to see someone if providing some "balance" to this story. Obviously, ABC could not.

Having known the sisters from the day they started in the business it does not suprize me to read the dumb remarks they have made against state farm. I worked for state farm as an independante adjuster for 27 years because they treated customers the way I would want to be treated if I were in their shoes. the sisters don't know enough about insurance to make such statements. i wonder if they would be ruining their livily hood if the attorney had not promised them large amounts of money.State farm is #1

I was a Farmers Insurance customer when my house was destroyed by fire in July 2004. (25 months ago). What people don't understand is that homeowners insurance no longer GUARANTEES the replacement of your house. If your home is more than 10 years old- you've got trouble. I read my policy, I sat down and discussed it with my agent. I had MORE than enough coverage. It didn't matter, they refused to pay. They know that 999 out of 1,000 will give up and accept the less than equitable settlement offer. They intentionally delay, delay, delay. All we've received so far for the total loss of our suburban Seattle home is $87,000. If I had known then what I know now.....

I have been working at State Farm for about 5 yrs now. I still have not seen an increase in HO policies and have only seen across the board decreases in auto policies. It's not that hard to figure out - READ YOUR POLICY. If HO insurance paid for flood damage then there wouldn't be such a thing as flood insurance.

It's not just the insurance companies who make money by denying claims. I work in an office building which is mostly occupied by a large hospital management company. I remember one day not too long ago when the elevator door opened to let some of the management company's employees off to go to work. Apparently, there was some logistical moving going on; in the lobby of the third floor, I could see through the opened elevator door a large banner sign: "Welcome to our Newest Revenue-Generating Department - Patient Claims Denial!"

On the rest of the trip upstairs, I had a short of queasy feeling. Wonder why?

Reading this report is very distressing when the rest of us that work at the company feel that we are being tainted with the report that you have written. I personally know that our morals and sense of responsibility to our policyholders is far greater than the profits that the company receives. It is far more important to us as agents that our promises are kept, our clients needs are served and that we retain the trust that we try so hard everyday to build. It is so unfortunate that with one fell swoop your report does irreperable harm to those of us that are not a part of your story. I'm quite certain that there are members of your organization that may not have the same standards as yourself Mr Ross and if they created actions (yet to be positively ascertained) that you would be extremely saddened to be painted with the same brush. We are deeply troubled at your report and would appreciate it if your organization would not paint 17,000 of us in every state in the nation with the same brush. 1 rogue employee or office could possibly be in play here and yet we all suffer because of the zeal your organization has to sensationalize this tradgedy. What about all of the good deeds done daily by this organization? the clients lives and livelihoods we have protected? What about the personal sacrifices many of us have made to be certain our clients needs and concerns were addressed first? Many agents themselves lost everything in this area and were themselves wiped out. Yet daily would go their offices to be certain their clients knew they were there for them. What about all the other agents who traveled great distances on their own dime to help service clients they never even met or had a relationship with? These stories unfortunatley will never be told because they are not the stuff of conjecture and intrigue. how sad it is for many of our associates who have worked non-stop 7 days a week 18 hour days, Trying their best with no showers, fast food< away from family and friends, bone tired with only a lonely hotel and report to write to have this report be their only reward? To thank them for their efforts? I understand it is far easier to lambast an organization, however this organization is made up of individuals not corporate curmudgeons. I would hope a sense of fairplay would exist in the media, but I guess in your view it is much easier to bash those who you have never met, or to have walked in their shoes. I would invite you to ask to shadow a claims rep on their daily routine for 30 days, work their hours and handle their phone calls and demands then be the Judge, Jury and Executioner with the report that you have aired.

I am a insurance appraiser - that is a typr of arbitrator - who represents the victim. I one looks at their policy under "Condition I & II" you will find a dispute mechanisim described as following:
Section I and II Conditions

4. Appraisal. If you and we fail to agree on the amount of the loss, either one can demand that the loss of the amount of the loss be set by appraisal. If either makes a written demand for appraisal, each shall select a competent, disinterested appraiser. Each shall notify the other of the appraiser’s identity within 20 days of receipt of the written demand.. The two appraisers shall then select a competent, impartial umpire. If the two appraisers are unable to agree on an umpire within the stipulated 15 days, you or we can ask a judge of a court of record in the state where the residence premises is located to select an umpire. The appraisers shall then set the amount of loss. If the appraisers fail to agree within a reasonable time, they shall submit their differences to the umpire. Written agreement signed by ant two of these three shall set the amount of the loss. Each appraiser shall be paid by the party selecting that appraiser. Other expenses of the appraisal and the compensation of the umpire shall be paid equally by you and us.

Note that if any two of the three in the Appraisal panel agrees the diffrences are settled.

I can say - after working this industry for over 25 yrs and having handled over 700 arbitrations/appraisals that yes the carriers do push their engineers and that the victims also play dangerously close to fraud. There are both bad/biased on the side of both parties. Nontheless, the policy is made to indemnifiy that policy holder and should these allegations of state farm manipulating the engineers report prove truthful - it should be frowned on by the state with all it's power..

I moved into a home in Washington State with over 9,000 square feet of toxic mold Chaetomium in the attic. This was only one of several problems including 14 code violations with the home. There was no drainage around the home and the two chimney chases were constructed of green sheetrock. The State of Washington refused to document the mold as they say contrary to other sources that mold and mildew do not cause wood rot. The same statement can be found on the US Forest Service website even though the predominant mold found in my home Chaetomium causes soft rot and it was associated with the extensive black mold in the attic sheeting. The State refused to document the items missed by the inspector or the mold and the PhD in charge of the department told me "don't get into that mold remediation crap" I became quite ill with Thyroid problems, rash, bleeding noses, COPD, chronic bacterial infections. The State of Washington passed a law protecting renters from the effects of toxic mold but has laid the ground for the demise or homeowners with their home inspection policies concerning toxic mold. The State was covering up for the fact that they licensed my inspector without valid insurance as was required by law. This is an extremely interesting case and needs all the media coverage it can get. Homeowners in Washington are at risk.

I have been fighting State Farm for 15 months over our Wilma claim. I have been denied coverage for mold (I was covered without additional limits), replacement value, denied mold remediation costs, code upgrades, and my contractor's fees were ignored. We settled all but personal items. Now State Farm is demanding appraisal, but the truth is they don't want to pay for the items to be cleaned, repaired, or replaced even with specialists estimates. Apparently they have an internal document about coverage for mold which they refuse to provide.