Thursday, February 25, 2010

Farmers seeks bond to cover discovery costs in Arkansas class action

TEXARKANA, Ark. -- Six years into a pending Arkansas class action litigation and still maintaining their innocence against the plaintiffs' allegations, defendant Farmers Insurance Co. wants to recoup the millions they have spent providing documents to the plaintiffs' attorneys.

Farmers, one of the few remaining defendants who is still refusing to pay a settlement, is asking Miller County Circuit Court Judge Kirk Johnson to enforce the Arkansas Cost Bond Statute and order the non-resident plaintiffs to pay a bond to cover the insurance company's out-of-pocket costs.

In response to the request, the plaintiff's are challenging the constitutionality of the statute with the Arkansas Attorney General.

The original class action, which was filed Sept 8, 2004, in the Circuit Court of Miller County, Ark., accuses hundreds of insurance companies of not paying the general contractors' overhead and profit or not accounting for the cost of a general contractor's services when estimating the repair costs under their homeowners' policies. Although the insurance companies paid previous their client's previous damages claims, the lawsuit argues that plaintiffs are entitled to additional payments.

The class action alleges claims of civil conspiracy, unjust enrichment, fraud, and constructive fraud
.

One of many insurance companies that believe this Arkansas case involves discovery abuse, Farmers has consistently asked Judge Johnson for protective orders against the plaintiff's extensive requests for production of documents.

Initially, the plaintiffs agreed to allow all the insurance companies to provide a 2,000 page-sampling of their case files, instead of producing all their claims files as previously requested.

Farmers filed numerous motions seeking protective orders and a court enforcement of the agreement to reduce the request of claim files. Many of the motions, some almost six years old, still remain undecided by Judge Johnson. The judge maintains he will not violate Arkansas law and delve into the issues of the litigation prior to class certification.

To some extent, Farmers has attempted to comply with the outrageous requests for documents, it has produced millions of pages of claim files and had the files converted to the requested format. In its most recent motion, Farmers states it has spent at least $6 million on this production and coupled with mounting defense fees and costs, it wants the plaintiffs to post that $6 million in a bond.

Farmers argues that the costs of its complying with the Court's discovery order is imposing an "undue burden and expense" and is depriving the company of its property pre-judgment in violation of the Fifth Amendment.

The plaintiffs are represented by Texarkana attorneys John Goodson and Matt Keil of the law firm Keil and Goodson; and attorneys Michael B. Angelovich, Cary Patterson, Brady Paddock and Christopher Johnson of the Texarkana law firm Nix, Patterson and Roach LLP.

Chivers v State Farm Case No 2004-294-3

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Friday, February 12, 2010

Texas Farmers Insurance Homeowners Class Action Lawsuit

Pursuant to the order of the 172nd District Court of Jefferson County Texas this press release is being issued to inform interested parties that a Class has been certified and is pending awaiting trial in the matter: Sandra Geter, on behalf of herself and all others similarly situated v. Farmers Group, Inc.; Farmers Underwriters Association; Fire Underwriters Association; Farmers Insurance
Exchange; and Fire Insurance Exchange, Cause No. E-167,872), In the District Court of Jefferson County Texas, 172nd Judicial District. The following copy of the Notice ordered by the Court provides further information.

Para una traduccion en espanol de esta notificacion por favor llame al 1-877-695-7479

SANDRA GETER | CAUSE NO. E-167,872
ON BEHALF OF HERSELF AND ALL OTHERS |
SIMILARLY SITUATED | IN THE DISTRICT COURT OF
| JEFFERSON COUNTY TEXAS
PLAINTIFF |
| 172ND JUDICIAL DISTRICT
V. |
|
FARMERS GROUP, INC.; |
FARMERS UNDERWRITERS ASSOCIATION; |
FIRE UNDERWRITERS ASSOCIATION; |
FARMERS INSURANCE EXCHANGE; |
AND FIRE INSURANCE EXCHANGE |
|
DEFENDANTS |
---------------------------------------------

Legal Notice
A Pending Class Action Lawsuit May Affect Your Legal Rights

If your HO-B homeowners insurance was not renewed in the circumstances described below, you are hereby put on notice that a class action lawsuit has been certified and is now pending in the 172nd Judicial District Court, Jefferson County, Texas (the "Court"). The lawsuit is entitled Sandra Geter, on behalf of herself and all others similarly situated, (the "Plaintiffs") v. Farmers Group, Inc., Farmers Underwriters Association, Fire Underwriters Association, Farmers Insurance Exchange, and Fire Insurance Exchange, (the "Defendants"), Cause No. E-167,872, 172nd District Court, Jefferson County, Texas (the "Lawsuit").

This Notice affects you if you fit within the following class (the "Geter Class"):

All persons, other than those excluded below, whom, on or after November 14, 2001, received a notice from one or more Defendants advising them that their current HO-B homeowner policy covering property in the State of Texas would not be renewed when it expired.

The persons excluded from the Geter Class are:

(a) All persons who received a notice from one or more Defendants on or
after November 14, 2001, advising them that their current HO-B
policy covering property in the State of Texas would not be renewed
because the person receiving the notice had filed three or more
claims under the policy in the preceding three years and the claims
did not result from natural causes;
(b) All persons who received a notice from one or more Defendants on or
after November 14, 2001 advising them that their current HO-B
policy covering property in the State of Texas would not be renewed
because the person receiving the notice had filed two non-weather
related claims in a period of less than three years, had received a
notice that their policy would be subject to non-renewal if a
third non-weather related claim was filed during a three year
period beginning with the date of the first of the two non-weather
related claims, and who filed a third non- weather related claim
during the said three year period;
(c) All government entities, bodies and agencies of any character,
federal state or local and their employees (in that capacity only);
(d) The presiding judge(s) and other court personnel; and
(e) The Defendants and their employees and agents.

The Court has ordered that the Geter Class be provided notice as follows:

1. Plaintiffs contend that despite Defendants' notice of non-renewal,
Geter Class members are entitled to renew their HO-B homeowner's
insurance policy and Plaintiff seeks a declaratory judgment
establishing whether and on what terms the Geter Class has a right
to renew the HO-B coverage. Defendants have denied any wrongdoing,
have denied that the Geter Class is entitled to renewal of the
coverage or the requested declaration, and Defendants contend that
they were not required to offer HO-B homeowners insurance policies
to Texas policyholders. The Texas Commissioner of Insurance has
agreed that Texas law permits Farmers to discontinue, as it has
done, offering HO-B policies to Texas policyholders, and offer, in
lieu of the HO-B policy, its amended and revised HO-A policy. This
Notice is not to be construed as an expression of any opinion by the
Court with respect to the merits of the respective claims or
defenses. This Notice is sent merely to advise you of the pendency
of the action and the rights which you have with respect to the
action.

2. All Geter Class members are also members of another class in the
pending case of Jan Lubin, et al v. Farmers Group, Inc. et al., C.A.
No. GV202501, in the 261st District Court in Travis County, Texas.
In particular, Geter Class members are members of the Rate class in
Lubin ("Lubin Class"), which includes all "who received a notice at
any time after November 14, 2001, that their HO-B Policy would not
be renewed." Farmers has agreed with the Texas Attorney General, to
settle the Lubin matter. The settlement must still be approved by
the trial court in Lubin. Under the proposed settlement, Lubin Rate
Class Members are eligible for a 6.8 % refund of earned base
premiums paid on HO-A policies incepted or renewed from December
28, 2001, up to and including November 10, 2002, either in the form
of a refund check or a credit upon renewal after approval of the
settlement. The Lubin Rate Class received a reduction to any HO-A
policy that was renewed or to any new policy issued, and the
reduction also is to be applied retrospectively to HO-A policies
issued before December 18, 2002. The proposed settlement with the
Lubin Class also provides other benefits to members of the Geter
Class. Some policyholders may receive benefits as members of the
Lubin Discount Class if they are current or former HO-A
policyholders and former HO-B policyholders who paid premiums that
were higher than what they would have been charged had the agreed
upon individual discounts been applied. Lubin Discount Class members
who did not receive discounts for Farmers Property Risk Assessment,
age of home, and territory at the level agreed to by the State and
the Farmers Parties are eligible to receive an Individual Discount
Adjustment payment. In addition, Geter Class members may be entitled
to recover in Lubin from the Credit Usage Notice Adjustment Fund if
Farmers used incorrect credit information when calculating their HO-
B premiums. Lubin Credit Usage Notice Class Members are eligible to
make a claim against the Lubin Credit Usage Notice Adjustment Fund,
designed to reimburse those policyholders who paid a higher premium
for auto or homeowners insurance due to erroneous credit information
on the individual's credit history maintained at a credit bureau,
which led Farmers to charge higher premiums than they would have
charged with correct credit information.

3. The settlement in Lubin has been preliminarily approved by the
District Court in Travis County. If you want to participate in the
final fairness hearing in Lubin, you must be a member of the Lubin
Class. The procedure for participation in the Lubin hearing will be
sent to you separately in another notice.

4. Any member of the Geter Class may opt out of the Geter Class and thus
be excluded from the litigation and remain eligible to participate
in the Lubin settlement. To opt out a Geter Class member need only
send their name and address in writing along with a statement that
they wish to opt out of the Geter Class to: Tom Kiehnhoff, Reaud,
Morgan & Quinn, 801 Laurel St., Beaumont, Texas 77701 with a copy to
Layne E. Kruse, Fulbright & Jaworski LLP, Fulbright Tower, 1301
McKinney, Suite 5100, Houston, TX 77010-3095. The opt out request
must be postmarked by May 1, 2010. Persons who opt out will not be
entitled to share in the benefits of the judgment if it is favorable
to Plaintiff and the Geter Class, and will not be bound by the
judgment if it is adverse to Plaintiff and the Geter Class.

5. All Geter Class members who do not opt out as described in Paragraph
4, will be bound by the determination of the Court whether favorable
or unfavorable to the Geter Class. Geter Class members are advised
that only the claim for declaratory relief has been certified as a
Geter Class claim and only the claim for declaratory relief will be
tried in Geter. Geter Class members are warned that claims for
damages or any other relief not within the scope of the declaratory
relief certified will not be tried as Geter Class claims and there
is a real and substantial danger that such claims may later be found
to be barred by a judgment for or against the Geter Class, unless
the Geter Class member opts out.

6. If Geter prevails in this case, to renew HO-B coverage, Defendants
contend that each Geter Class member must pay the full cost of the
renewed HO-B policies for each year in issue, or from the year of
non- renewal (in most instances from 2002) to date. For example,
the premium for a HO-B policy in 2002 has been estimated to be in
excess of $5,410.00 for Sandra Geter, or total premiums of about
$43,280.00 for the years 2002-2009. In 2003, the Texas Legislature
passed legislation regulating rates. Each insurance exchange is
required to use certain criteria in setting rates and must file
proposed rates with the Texas Insurance Commissioner. Exchanges are
not currently permitted to write homeowners insurance on the HO-B
form - or any other policy form - without first undergoing this
rate-making process. Because new rates would have to be filed with
the Texas Commissioner of Insurance for approval under the new law,
the exact amount each Geter Class member would be required to pay to
obtain an HO-B policy renewal is unascertainable at present.

7. Since the Geter case was filed in 2002, the Texas Supreme Court has
ruled that the HO-B policy excludes mold damage claims. Therefore,
any renewal of an HO-B policy offered to Geter Class members as a
result of this case would not include coverage for losses caused by
mold.

8. If Geter prevails in this case, to renew a HO-B policy, Defendants
contend that each member of the Geter Class would also be required
to qualify for the coverage. In addition to submitting proof of
ownership of the insured property, the renewal of each Geter Class
member's HO-B policy would be subject to underwriting review.
Underwriting is the process used by an insurer to determine if a
risk is acceptable to the insurer, and if so, how to price that risk
if written. An underwriting review may include, among other things,
the inspecting of the insured's home (both interior and exterior) to
determine whether it continues to meet underwriting requirements.
The underwriting inspection may include an inspection of the home's
roof, foundation, sidings, doors, windows, driveways, porches,
decks, patios, gutter, plumbing, heating, cooling systems,
electrical, and the maintenance and other physical condition of the
property. If a property does not meet the actuarially sound
underwriting guidelines, Defendants cannot be required to renew it
without regard to whether Geter prevails in this matter.

9. Any Geter Class member may, if they choose and at their own expense,
enter an appearance through counsel of their choosing. All Geter
Class members who do not opt out or enter an appearance through
counsel of their choosing will be represented by Plaintiff through
her counsel:

Glenn W. Morgan
Tom N. Kiehnhoff
Chris Portner
Reaud, Morgan & Quinn
801 Laurel Street
Beaumont, TX 77701
(409) 838-1000

Wayne A. Reaud
The Reaud Law Firm
801 Laurel Street
Beaumont, TX 77701
(409) 838-1000

L. DeWayne Layfield
Law Office of L. DeWayne Layfield
P.O. Box 3829
Beaumont, TX 77704
(409) 832-1891

10. The attorneys representing the Geter Class have entered an employment
contract with Sandra Geter under which Sandra Geter agreed that
should she prevail in this case the attorneys would receive a
contingent fee payment. However, since no damages will be recovered
in this Lawsuit by the Geter Class, the attorneys representing the
Geter Class plan to apply for reasonable and necessary fees based on
the hours that they actually worked on this matter, assuming the
Geter Class prevails at trial. If awarded by the Court, reasonable
and necessary fees would be paid by Defendants.

11. All communications and questions concerning this Notice should be
sent to Plaintiff's attorneys identified in Paragraph 4, and should
not be addressed to the clerk of this Court.

12. If the address of any Geter Class member changes or is different than
the address stated on the envelope enclosing this Notice, the new or
corrected address information should be sent by mail to the
attorneys identified in Paragraph 4.

13. This Court has retained jurisdiction in this action to alter, amend
or withdraw its order determining that this cause shall be
maintained as a class action, at any time before final judgment.

14. The pleadings and other papers filed in this action are available for
inspection in the office of the clerk of this Court.

15. You can also obtain additional information by visiting
www.GeterClassAction.com or calling toll free 1-877-695-7479.

Dated: December 10, 2009 /s/ Donald J. Floyd
-------------------
Honorable Donald J. Floyd
Judge 172nd District Court
Jefferson County, Texas

Media inquiries can be made as indicated in the Notice.

Source: www.geterclassaction.com

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Thursday, January 21, 2010

Class Action: We are looking for individuals who were wrongfully charged deductibles

Wrongful Application of Deductibles


My name is Joseph Watkins. I am an attorney specializing in bad faith in Tucson, Arizona. I am currently handling a class action lawsuit in federal district court titled Rodriquez vs, Farmers Insurance. The lawsuit involves cases where deductibles were charged wrongfully. Specifically, in any claim or any policy limit was exceeded by an amount greater than the total deductible, the deductible must be refunded. For instance, if you have a contents loss of $20,000 with $50,000 in total coverage, Farmers will normally charge your full deductible against the loss. However, if there was a sub limit of, for example, $2500 for furs and the loss involved $5000 in damage to fur coats, Farmers must absorb or refund the deductible up to $2500 even though the loss was under the total contents limit for coverage.

The deductible is usually charged on the first check issued. If any policy limit is exceeded after that point in time the deductible must be refunded. This is true of any limit not just the larger limits.

Please contact:
Joseph W. Watkins
6303 E. Tanque Verde, #210
Tucson, AZ 85715
520-882-9115
JoeWLaw@Cox.net

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Saturday, February 14, 2009

Farmers Insurance is one of the 10 Worst Insurance Companies for Consumers

The American Association for Justice has recently released a report entitled The Ten Worst Insurance Companies in America. You can read it here (pdf). The Alabama Association for Justice has prepared a statement on the report, which appears below:

10 Worst Insurance Companies for Consumers Ranked; No. 1, 3, 4 and 7 Sell Policies in AL

Insurance Industry Employs "Deny, Delay, Defend" Strategy, Puts Profits Over Policyholders

MONTGOMERY - In recent years, Alabama homeowners have seen sharp increases in their insurance premiums. A new study put out by the American Association for Justice ranks the 10 worst insurance companies in the U.S. for consumers and explains the overall rise in premium costs to an industry-wide strategy of denying claims, delaying payments and defending those positions as long as possible in hopes that weary claimants will settle for less than their claim is worth.

"Nationally, we've seen insurance companies continue to put profits over the best interest of their policyholders," Gibson Vance, president of the Alabama Association for Justice (ALAJ), formerly the Alabama Trial Lawyers Association, said, adding that "in Alabama it's no different."

In Alabama, State Farm (#4 on the 10 Worst Insurance Companies List) is the leading insurer of property and casualty insurance, followed by Allstate, AIG and Farmers (#'s 1, 3 and 7 on the 10 Worst Insurance Companies List). Alabamians pay the ninth-highest average homeowners premiums in the nation, which insurers say is because of hurricane risk, but interestingly only 12 percent of the state is coastal. In addition, property and casualty insurers took in $6.6 billion in premiums from Alabama policyholders in 2006 but only paid out $3.5 billion in losses.


Thousands of court documents, materials uncovered from litigation and discovery, testimony, complaints filed with state insurance departments, SEC and FBI records, and news accounts were reviewed to compile the rankings and statistics of the study. Financial documents also revealed extravagant profits and executive compensation while policyholders' claims were routinely delayed and denied. Over the last 10 years, the property / casualty and life / health insurance industries have each enjoyed annual profits exceeding $30 billion. The insurance industry takes in over $1 trillion in premiums every year. It has $3.8 trillion in assets, more than the GDPs of all but two countries. The CEOs of the top 10 property / casualty firms earned an average of $8.9 million in 2007. The CEOs of the top 10 life / health insurance earned an average of $9.1 million. The median insurance CEO's cash compensation is $1.6 million per year, leading all industries.

"The 10 worst insurance companies that made the list did so because of their shameful treatment of policyholders. As the study shows, Allstate's Your in Good Hands' motto only applies if you don't make a claim," Vance said.

10 Worst Insurance Companies for Consumers

1. Allstate (NYSE: ALL) set the standard for insurance company greed and placing profits over policyholders. Allstate contracted with consulting giant McKinsey & Co. in the mid-1990s to systematically force consumers to accept lowball claims or face its "boxing gloves," an aggressive strategy designed to deny claims at any cost. One Allstate employee reported that supervisors told agents to lie and blame fires on arson, and in turn, were rewarded with portable fridges.

2. Unum (NYSE: UNM) - Unum's actions are even more shameful considering the type of insurance it sells: disability. Unum's behavior was epitomized when it denied the claim of a woman with multiple sclerosis for three years, stating her conditions were "self-reported," contrary to doctors' evaluations. In 2005, Unum agreed to a settlement with insurance commissioners from 48 states over their practices.

3. AIG (NYSE: AIG) - The world's biggest insurer, AIG's slogan was "we know money." AIG, described by commentators as "the new Enron," has engaged in massive corporate fraud and claims abuses. In 2006, the company paid $1.6 billion to settle a host of charges.

4. State Farm - State Farm is notorious for its deny and delay tactics, and like Allstate, hired McKinsey consultants. State Farm's true motives became apparent during Hurricane Katrina; for example, it employed multiple engineering firms until they could deny the claims of the Nguyen family of Mississippi. In April 2007, State Farm agreed to re-evaluate more than 3,000 Hurricane Katrina claims.

5. Conseco (NYSE: CNO) - Conseco sells long-term care policies, typically to the elderly. Amongst its egregious behavior, the insurer "made it so hard to make a claim that people either died or gave up," said a former Conseco-subsidiary agent. Former Conseco executives were fined when they admitted to filing misleading financial statements with regulators.

6. WellPoint (NYSE: WLP) - Health insurer WellPoint has a long history of putting profits ahead of policyholders. For instance, California fined a WellPoint subsidiary in March 2007 after an investigation revealed that the insurer routinely canceled policies of pregnant women and chronically ill patients.

7. Farmers - Swiss-owned Farmers Insurance Group consistently ranks at or near the bottom of homeowner satisfaction surveys, and for good reason. For example, Farmers had an incentive program called "Quest for Gold" that offered pizza parties to its adjusters that met low claims payments goals. Like Allstate, it also hired the McKinsey consultants.

8. UnitedHealth (NYSE: UNH) - The SEC opened an investigation into former UnitedHealth CEO William McGuire for stock backdating, which ultimately led to his ouster in 2006 and returning $620 million in stock gains and retirement compensation. Physicians have also reported that their reimbursements are so low and delayed by the company that patient health is being compromised.

9. Torchmark (NYSE: TMK) - According to Hoover's In-Depth Company Records, Torchmark's very origins were little more than a scam devised to enrich its founder, Frank Samford. Torchmark has preyed on low-income Southern residents and charged minority policyholders more than whites on burial policies.

10. Liberty Mutual - Like Allstate and State Farm, Liberty Mutual hired consulting giant McKinsey to adopt aggressive tactics. Liberty's tactics were highlighted when a New York couple's insurance was "nonrenewed" by Liberty, even though they lived 12 miles from the coast and never experienced weather-related flooding.

To see how consumers can hold the insurance industry accountable and view a full copy of the study, visit www.justice.org
Source: whnt.com

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Tuesday, November 25, 2008

Farmers Insurance Increases Homeowner Rates In California

California Insurance Commissioner Steve Poizner has allowed two of California’s largest home insurers –State Farm and Farmers – to increase premiums by a combined $115 million. State Farm customers will soon face an average 6.9% hike and Farmers policyholders’ rates will climb 4.1%, according to recent decisions by the Commissioner. In both cases, the nonprofit Consumer Watchdog had formally challenged the rates and petitioned Poizner to hold hearings pursuant to Proposition 103, but the commissioner rejected those requests.

In an economy like this, Californians are relying on the insurance commissioner to keep premiums as low as possible, but Commissioner Poizner refused to hold a hearing to investigate rate hikes that will affect more than 2.5 million homeowners. We reviewed the proposed rate increases and concluded that they were unjustified. The commissioner should not have allowed these insurers to jack up prices like this.

At least $20 million of the increase for State Farm was allowed as an exception to Proposition 103’s strict limit on excessive insurer expenses in order to let the insurance giant charge customers for “higher quality of [customer] service.” Included in Farmers’ rate hike was a special exception to the expense limit for millions of dollars allegedly spent on the company’s fraud prevention efforts. According to our review, the company did not meet the standard required to pass those costs on to policyholders.

We’ve noted that both State Farm and Farmers are financially well-positioned to pay claims resulting from the recent Southern California wildfires and do not need premium increases to address those losses. We intend to challenge the Commissioner’s decision allowing Farmers’ rate hike and is reviewing the propriety of the State Farm increase.

If the rates take effect, policyholders with State Farm will see an average increase of about $60 per year and Farmers customers will pay about $30 more on average.

With sinking economy, insurers turn to rate hikes

Insurance company profits are tied to their investment income and when the economy weakens companies try to push premiums higher in order to maintain high profits. We are concerned that other insurers will press the Department of Insurance for more rate hikes as their investment portfolios tank. As evidence, consider Allstate, which was forced to lower its California homeowners’ insurance rates by about $250 million last spring. Allstate requested a 6.9% rate hike increase for homeowners in September. That proposal is still under review by the Department of Insurance.

While everyone is feeling the sting of a bad economy, insurance companies want to pass the pain on to homeowners and other policyholders.
The insurance commissioner stands between these companies and our wallets and Californians need him to be there.

California’s insurance reform law, Proposition 103, requires insurance companies to open their books and submit to public hearings to prove their rates are adequate without being excessive. Members of the public can challenge rate hike proposals, and the commissioner must grant a hearing if the requested change exceeds 7%. It is left to the commissioner’s discretion whether or not to initiate a full hearing for changes less than 7%, as was the case in the State Farm and Farmers matters.

In recent years, Consumer Watchdog has successfully challenged several insurance rate proposals, resulting in more than a billion dollars in savings for California policyholders.

Consumer Watchdog is a non-profit, non-partisan public interest group. In addition to being their Executive Director, Doug Heller is Consumer Watchdog’s lead legislative and regulatory advocate on insurance and energy issues. Heller spearheaded the two-year battle for the nation's strongest whistleblower protections, which are now California law.

Source: californiaprogressreport.com

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Friday, July 25, 2008

Paid for Farmer Insurance Homeowners but Didn't Get It

Woman has to contact news station to get refund for Farmers Insurance Homeowners policy she didn't get but paid for.

FAYETTEVILLE (WTVD) -- A Fayetteville woman made a startling discovery about her homeowners insurance.

Dawn Murphy purchased her home in May 2007. Along with the house purchase, she paid Farmers Insurance $562 for her first year of protection.

Dawn didn't think about her policy again until a year later when her mortgage company called about the renewal information. From calling up Farmers Insurance, she learned that she did not have any protection on her home for the past year. Dawn tells Troubleshooter Diane Wilson, "They looked by my social security number, my birth date, my name, everything. And he said he couldn't find it."

Timothy Moore, the Farmers agent who sold Dawn the policy, confirmed that despite paying in full for the policy, Dawn didn't have it. She says, "What if something had happened, God forbid, a house fire, an electrical fire, anything? It was scary. I'm thankful nothing did happen."

Dawn wanted a full refund of the $562 she paid Farmers. She says she called and e-mailed several reps but never got it so she contacted Troubleshooter Diane Wilson. Three days after contacting the Troubleshooter, Farmers Insurance agent Timothy Moore hand delivered her refund.

She tells Troubleshooter Diane Wilson, "I'm so glad you got involved. Thank you very much." Dawn's Farmers insurance agent never gave Troubleshooter Diane Wilson a reason Dawn didn't have a policy, despite paying for it, but did get her a full refund.
henever you sign up for a new insurance policy, after getting all the paperwork it's always good to just call your insurance company to confirm your coverage.

Source go.com

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Thursday, May 22, 2008

Farmers Insurance Policy Didn't Cover Groundwater and Mudslide Damage

Are You Covered?: Insurance for Storms

A warning to all homeowners: with the start of hurricane season and summer storms it's time to think about your insurance and what it may or may not cover if something happens to your home.

We all think it will never happen to us. But when it does, we realize it's too late to do anything about it. For one local woman, the damage in done. But as she works to pick up the pieces she hopes her story will encourage others to think "what if that were me."

"I felt my bedroom shake and tremble," remembered Mary Gordon Hall. The storm that hit Charlottesville earlier this month caused major damage to her Batesville home.

She continued, "There were cinder blocks mud deep, and there was no wall. The wall had been blown out."

Water pressure that had built up behind a wall in the basement became too much. Gordon said, "Everybody's faces were always 'whoa.' I could tell by the walk around and the things they said and the way they reacted to my house that this was pretty serious"

Structural engineers have determined house is unsafe to live in. Gordon has been staying with a friend for the past two weeks and it's unclear if she'll ever be able to move back home.

Gordon filed a claim with Farmers Insurance. Turns out, she isn't alone. Farmers Insurances' Rico Metzroth shared, "Just in those few days, May 8th, 9th and 10th, we had slightly over a 100 needs. So we were here meeting with our customers."

Investigators determined she's dealing with groundwater and mudslide damage. Nothing is covered. An earthquake policy would have been the only thing that could have helped.

"The typical consumer would not think of buying that type of policy. They would not even think of earth movement as being part of that policy," stated Metzroth.

For things to get back to normal, land must be moved, the basement will be demolished and a wall re-constructed. That work is estimated to cost $30,000 to $40,000.

"You know it's one step at a time," said Gordon. "I just have to wait and see. Hopefully, I'd feel safe when it's all fixed."

Gordon says the one positive thing that's come out of this ordeal is the community support. She told us everyone from the school where she works and her friends have been unbelievable. She also said they're all checking their policies as well.

We know there is a lot to this issue and the details can get tricky. We have additional information here in a Word document that can help answer any further questions.

Reported by Jenn McDaniel
Source: nbc29.com

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