I agree insurance is a necessity and that people ought to know their policies better... or at all, but I also believe that you cannot trust or have faith in any of them.

The medical insurance business, in particular, is damn near as crooked as the oil industry. Real changes need to be made to the policies and procedures that insurance companies "abide" by and all current executives should be let go or reassigned. I do not believe many of the most powerful people in the industry have any idea what it means to need insurance. IMO, there is something wrong with that.

The only time I dealt with State Farm was when one of their insured motorists rear ended my (at that time) pregnant wife's car, knocking my mother in law out and pinning her in the back seat. Before my wife could call me their agent was on the phone saying that they wanted to speed the process of paying me. All I needed to do was sign a medical waiver.

Needless to say no waiver was signed and it took months to get the money.

The problem started when businesses core mission became profit margins and stock forecasts instead of customer value and product. Greed is NOT capitalism no matter what they teach for economics these days...

State Farm has been a known and notorious bad actor for years, at least here in Missouri. It is astonishing that a company with their terrible legacy still gets people to do business with them.

Do your homework before you do business with any insurance company. If you only shop based on rates, you get what you deserve.

Im an agent and yes this does go on.But sadly not just State Farm is doing it. They are just the largest carrier so they do it more often.

I am an insurance agent with an old established insurance company in Texas and I have been reading the comments regarding the allegations made against State Farm. Some of you have it right; most people don't know what their policies cover. Mostly they are only interested in what the bottom line is; $$$/premium. Then when time comes to file a claim, they are expecting something that may not be possible. So... if you live in a flood area or state, buy a flood policy and then if they don't pay, get upset. Don't complain about something you know nothing about!

Response to N. Russillo - My claim was handled in a timely manner and fair and no, I don't work for the insurance company. Guess the difference is that I know what my policy says and what it covers.

Notice that they didn't deny it? I think it is all true. While we were lucky enough to have flood insurance (not enough to cover the mortgage, but something) Katrina still wiped us out. It took us 8 months to get our money from Allstate, and they only gave us 4 weeks worth of "loss of use" -- hysterical if it weren't so sad. For those complaining that your premiums pay for those who choose to live along the coast, give me a break. There are very few locations in the US where there isn't some risk -- don't lay it all on people who live in coastal areas. Too, undestand that flood insurance is underwritten by the National Flood Insurance Program, and they cap you at a percentage of what your property is worth -- you can't possibly recoup what you've lost. The only fair compensation is for the US government to compensate every homeowner whose property was flooded because of the levee breaches -- it was lousy engineering (this has been ADMITTED), NOT the hurricane that killed New Orleans. Who owes us for what we lost? Think about it.

We all remember State Farm and others pulling out of the insurance business after multiple storms and claims in Florida, but also recall they pulled out of homeowner's policies in Texas for mold coverage and remediation. It's all numbers, and some actuary somewhere right now is crunching numbers for the next potentially excluded group, probably in MS or New Orleans. State Farm is outraged...boo...hoo..hooey! What about people whose lives are forever marred by corporate greed and shareholder value? Just have to wait for the Federal Dept Of Justice and Mississippi Attorney General to finalize the investigation process, let's be thankful it's not FEMA investigating.

First and foremost. For all those fact checkers out there, State Farm is a mutual insurance company. That means it is owned by its policyholders. There are no stockholders. The only interest of the company is to its policyholders. With proper premiums and claims operations this helps to insure that the coverage that is promised and owed is paid.

If you don't read your policy until something happens, then the only person that you should complain to is yourself.

Any good attorney will always tell you to read before you sign.

I used to work for two insruance companies in Florida in the event of the hurrican seasons comming up we always sent out flyers and or told everyone that called in to get flood insurance. Most of the damage done in MS and LA last year was the flood or the Levees broken flood covers a Rain fall not a man made dam or levees breaking. Its the insurance agents duty to tell everyone one even if they live in kansas to get flood insurance a flood is when it rains and water cover 80% of your land and covers either a nieghbors yard or fills you street up with water this can happen anywhere it rains for any period of time like the nieghbor pools overflows and covers more than the one home because of massive rain.. The problem is these people can get mad at the company it should get mad at the agent for not adviseing them to get the proper coverage on thier homes. I made sure everyone that i knew in florida had a flood insurance policy and made sure that they had adiquit coverages on thier home onweres insurance to cover them in the event of a flood or massive winds i even have replacement cost on everything this is why when your renewal papers show up in the mail go to your agents office and discuss all you options and dont be cheep if you want cheep insurenace dont bother getting the insurance on your home

State Farm isn't alone in scamming people. I had a deck accident over 3 years ago and I had only lived in the house for 5 months, but the insurance company said it was my fault. I feel very sorry for all the people down there because they lost everything not just a deck.

Insurance companies are not the ones at fault when it comes to claims disputes, its the policy holders who never take the time to read what they bought. It is easy to get on the bash the insurance carrier bandwagon, but let's be real here. The fact that a majority of claimants did not have flood insurance is the major problem. How could anyone possibly go without flood insurance when living on the coast? Give me a break. Filing a claim that is based on "I thought I was covered" is equivalent to stupidity. If ignorence is bliss, then the folks that think they are entitled to be covered for losses they did not insure, then those folks must be living in nirvana!

Hi, My name is Sandy, I live in Florida with my son in a one room F.E.M.A. trailer since sept./5/2004. State Farm has not come out to my house to this day. Yet I still pay my full morgage and the insurance comes out of my escrow. I pay $300 A MONTH for the Fema trailer. This sucks!!!! please help!!!! :(

Basic homeowners policy does not cover flood damage. Flood coverage can be added to the basic coverage for an extra premium.

The theory is that it is unfair for all policy holders support by paying for the few that live in areas of high flood or tidal wave etc.

It's only reasonable for those exposed to these types of losses to pay the extra premum for the coverage.

I had State farm and they had always been good to me. I am 76 years old and when my house was ruined by Katrina. My claims rep simply said sorry but I am sure that you can go and live with your children or grandchildren! A 250,000 dollar house and they wanted to give me 68,000. They said that the other damage was caused by water! I am an old lady at the end of her life and instead of pay me so I could rebuild my house. Now I am in an a crummy room at a retirement home untill I die All B/C state farm ceo's have second and third homes to pay for. If I could I would go around the country telling everyone my story and getting them to switch ins. company!

Take the wisdom of an old lady and if you have State farm CHANGE AS FAST AS YOU CAN!!!!!!!! Before they put you in the poor house!

I've had a few claims with State Farm and never had a problem. I think that people need to get educated on insurance. The post above states something about State Farm's stockholders.....State Farm is a Mutual company which means that each policyholder "owns" the company. I feel for the people that were devastated by the hurricanes but let's face it. If you don't buy flood insurance you don't get covered in a flood. Most of the damage in the New Orleans area was due to the break in the levy, which is a flood and would require flood insurance. If you get into a car crash and don't have insurance do you expect someone to fix your car for you?

I also like how ABC News takes everything context to make it an interesting story for ratings purposes. I also note that you said that these girls worked for State Farm but in other places you say they worked with State Farm. Were they employees of State Farm?

An eye-witness spotted and reported my car being hit in a parking lot by a driver that left the scene. The police located the driver- a State Farm customer. The license plate and vehicle description matched. Somehow, this was "not enough evidence" for State Farm and I didn't get a dime.
Two years ago during Hurricane Ivan, my uncle's house was hit by a tornado- again, a witness actually saw the tornado hit his house. State Farm claimed all the damage was water related and didn't pay on the wind policy.
It's high-time a news agency exposed this greedy company that preys on those that can't afford lawyers to fight for what they truly deserve. Payback is sweet, I hope you go under, State Farm! Hopefully this is good riddance! Good job, ABC... keep digging for the underdogs!!

State Farm, Nationwide, Allstate, they are all the same. Deny, delay, don't pay. I dealt with Allstate a year before Katrina when we had a house fire. If you have to do business with their Nashville office, be very aware. I wanted to put a voodoo curse on all involved.

You idiots defending State Farm make me sick! That goes with any of the other bozos that keep saying "flood damage is not covered in your homeowner's policy". For your information, I live in Texas, where Rita hit last year. I have BOTH windstorm AND flood insurance and you can be damn well sure I KNOW what is in my policies. (My father was an insurance agent.) The roof of my house was partially destroyed and water came in to the house from the hole in the roof. Yes, there was flooding as well and my flood insurance covered that. But those at State Farm fought my claim saying that my FLOOD insurance should pay for the damaged caused by water coming in the ROOF of the 2nd story to my home. Now my home was FLOODED on the first floor and the flood insurance covered that but that FLOOD did not get to the 2nd floor. THAT was caused by water AFTER the roof was torn off (which IS covered by windstorm..yes, I READ my policy). State Farm is trying to claim that ANY water damage to a home should be covered by flood insurance. The 2nd story wouldn't have HAD any water in it if the damn ROOF had not come off.

So, believe what you want, but insurance companies are NOT innocent babes in the woods. And for that fellow from Wisconsin who "sends money to me every 30 days via increased premiums", I certainly understand. I have to send money to you up there every 30 days when the price of my gas goes up to pay for your home heating oil...so why don't YOU quit bitching or move?

Problem: Insurance companies for profit corporations.

Solution: Insurance companies legislated to be non-profit.

Duh.