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Shame on you State Farm… Shame…..

To all of you “Loyal” State Farm customers please hear me out…..

I have been a state farm customer since I turned 16 in 1984… I have continued to use them my entire life for first my car, then my home, my wife’s car, kids cars and an umbrella policy. My premiums have never and I mean never have been late, heck for the last 15 years its been an auto draft from my checking account. Last year we finally gave into having to get new siding after a storm, this wasn’t one of those “storm chaser” deals we literally have pieces of our siding torn off and it looked as though someone took a large bucket of golf balls and just peppered our house with them. Out of total fairness to State Farm I actually didn’t feel we needed to pursue the roof replacement even though my roof is now 17 years old.

One week after our new siding went up a feeder pipe to our master bath failed and flooded our master bathroom and the office below it. Carpet ruined, drywall ceiling in office ruined just bad stuff. With a lump in my throat I called up State Farm claims and they went right into action! ServPro showed up and started the cleanup and drying process, a field agent came and evaluated our damage and I had mentioned that we literally JUST had the siding done his exact words were “Don’t worry sir, these situations are why we have insurance”…. Phew! That made me feel so much better. We worked closely with State Farm through the repair process and everything wrapped up about 5 weeks later.

So 30 days later I get a lovely letter from State Farm stating that I would be dropped for my homeowner’s policy! Really? Your dropping me for 3 claims over the period of 24 years as a homeowner policy holder with you? With your premiums paid in full annually and the monthly car policies auto deducted on time every time?

I was shocked, stunned and then pretty angry. I called my agent Bill Recchia, 2560 Foxfield Rd #260, St Charles, IL 60174, (630) 513-1191 and left a message asking what was up? Bill had the audacity, after being his customer for 15 years to have his admin call me and explain there was nothing they could do about it.

Well there was something I WAS going to do about it, I shopped for a week and found many other insurance companies very willing to have my business. I settled for American Family Insurance and have the exact same coverages I need.

When I called the agent back to let them know I am cancelling all of my policies with them the girl was a bit surprised and confused because State Farm … in her words “Oh, they only canceled your homeowners policy sir, we want to continue your car coverage”…. Umm NO!

Please be aware this is how State Farm operates, loyalty doesn’t matter, being on time with your payments doesn’t matter, what matters is when they have to pay for you…. What a dirty shame and a fine waste of my money going to a company that simply doesn’t care about their long-term customers….

Product or Service Mentioned: State Farm Insurance Homeowners Policy Claim.

Reason of review: Poor customer service.

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Insurance agent's are the sales department of insurance companies. That's specifically what their licenses allow for.

Their offices are store fronts. They're paid on commissions. If you are not buying something from them, they're not making any money.

Claim adjusters are paid to determine the legitimacy and value of a claim. That's specifically what they're license allows for.

Underwriters are the risk decision makers.

What the claim rep told you makes no difference.

The fact you didn't speak to your agent makes no difference. Neither of these people have any say in an underwriting decision.


What I'm sharing here with you is to help you understand the BUSINESS of insurance. I realize you're taking this very personally and you're angry at this time.

I'm hesitant to say the things I'm going to say because you're going to think I'm being as cold and ugly as you believe you're company is being. Please know I'm only sharing these facts because you need a clearer understanding of what has happened to you.

Paying your insurance premium on time is nothing special and you won't be given an "atta boy" for doing it. If you do not pay it, on time, your coverage ceases.

In the world of insurance, money constitutes a contract. No money, no contract. Paying your bill is the very minimum and basic requirement of the contract.

Your insurance company did exactly what you paid them to do. They covered your claims in an efficient, timely and fair manner and in accordance with your contract.

Upon completion of analyzing and covering your losses, they determined that the potential risk for a future loss from you outweighed the risk their actuarial analysis allows for.

You see, statistically, the average homeowner has one loss every 17-20 years. You've presented three, with at least two very close together and I imagine, the third not being too far behind. That puts you in a category of high risk for potential future losses.

Essentially, you turning in that number of claims, that close together, changed the terms. The company did not change their terms. Their terms are very consistent. Each and every time your policy approaches renewal an insurance company analyzes your potential for future losses.

If the risk is low, you're offered a renewal. If you pay the renewal premium, you have accepted the renewal offer. That money now constitutes your new contract. You're given a totally new contract at each and every renewal.

The "loyalty" factor only comes into play by the company when they grant you claim free discounts and years of service discounts. The longer you're with the same company, the more discounts they're willing to offer for remaining claim free. Once that claim free status is breached your premiums become higher and/or your risk to the company warrants further analysis. Again, at the risk of sounding non-caring, the owner of the agency probably did not call you personally because that's why he pays agents to work in his office and handle customers.

What some don't understand is that most agencies with one name on the sign are actually operating under that named business owner's capital/money and the people who work for them are not assistants or administrators or secretaries. Those employees of the business owner are also fully licensed agents who are paid to work directly with the agency's clients. When something happens you're unhappy with, there are people, other than the owner of a business, who are fully capable of handling it. You stated you were given the letter by the company.

They are the final word. There is nothing the owner can do to change it. It sounds like one of the office's agents or "the girl", as you so respectfully referred to her, tried to explain to you. I would be willing to bet you'd already made up your mind to take the autos and didn't want to have a true conversation.

If you've kept reading this far, I'll fill you in one last item about this business. It's the same with EVERY company. Insurance is in the business of risk management. The only difference will be that with the new company, the sooner you turn in claims, the sooner you'll be cancelled.

Also, you're starting over, so in many states, they'll be legally allowed to drop you after the first claim.

They know this, that's why they're so eager to go ahead and take your business. Believe it or not, I'm not trying to be cold, but these are solid facts about the industry in general.

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