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A Georgia couple has moved to certify a class action lawsuit against State Farm Fire & Casualty Company for allegedly refusing to pay to cover the loss in value to their property as the result of recent damage that was supposed to be covered by their homeowners policy.
Plaintiffs John and Leigh Ann Thompson filed the State Farm class action lawsuit in a Georgia federal court on Wednesday, after State Farm did not cover damage to their home as described in their homeowners policy.
The class action lawsuit states that in September 2013, the Thompsons’ home was damaged by an event that was covered by their State Farm home policy. The damage was then reported to State Farm. After sending out an adjuster to survey the damage, the insurance company then authorized the necessary repairs and paid for certain costs.
“At the time State Farm authorized the repairs to plaintiffs’ dwelling and adjusted the claim, no one from, or on behalf of, State Farm advised plaintiffs that they were entitled to recover for diminution in value to their property,” the class action states. “No one from, or on behalf of, State Farm provided plaintiffs with any information, materials, or documents that referenced or explained plaintiffs’ rights under the policy with regard to a claim for diminution in value.”
The Thompsons asked State Farm if they would be able to be compensated for the loss in value to their property and they were told that it was not covered by their policy. As a result, the insurance company did not assess loss in the value of the Thompsons’ home and, therefore, did not pay the Georgia couple for that loss.
“By failing to account for diminution in value as an element of loss and by failing to pay its insureds the diminution in value of their property, State Farm breached the policy, including the covenant of good faith and fair dealing inherent therein,” the State Farm class action lawsuit claims.
According to the class action, compensation by insurance companies for the loss in value to a property is mandated by Georgia law and is included in the contracts issued by State Farm.
“Under Georgia law, when insureds present first-party physical damage claims under their homeowner’s insurance policies, the insurers are required to pay not only the costs of repair but also any diminution in value of the insured property,” the class action explains.
The class action lawsuit is for other Georgia residents who own insurance policies through State Farm and were not compensated for loss of value to their property following covered damaged.
The Thompsons are charging State Farm with breach of contract and equitable relief. They are looking to represent two classes for each charge.
The plaintiffs are represented by Clint W. Sitton and Richard Kopelman of Kopelman Sitton Law Group LLC; C. Cooper Knowles of Stack & Associates PC; and Adam P. Princenthal of Princenthal & May LLC.
The State Farm Class Action Lawsuit is John Thompson and Leigh Ann Thompson v. State Farm Fire & Casualty Co., Case No. 5:14-cv-00032, in the U.S. District Court for the Middle District of Georgia.
UPDATE: On Mar. 9, 2016, a federal judge issued partial certification in the class action lawsuit filed by homeowners who alleged that State Farm failed to compensate homeowners for the diminished value in homes that had water damage but were fully repaired.
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9 thoughts onClass Action Says State Farm Stiffs Home Insurance Policyholders
I had a total loss on my home.. My home was pd for and i had a policy in force at time of loss my agent was fired i was told..i had to move in with ex husband
i was so lost and needed help as i lost my home .. im still homeless today 49 yrs old went thur alot of emotional and physical hardship and still am.. im a grandmother now and i havent had a place for my babies to come spend night.. My parents had passed and i didnt have them to go to .. Can anyone help? 8 havent been denied as of yet.. Thanks
on march 2020 due to covid 19 no help. I been with state farm for 21 years and they cover nothing we had a storm go through small town they said we live to far from big city that they don’t recode data for storms. in the country but they take money every year.
Is this class action suite settled? I am just checking because I am part of it. I lived at
4907 Water Hole Court
Douglasville, Georgia 30135. I had all kinds of damage, roof, stucco, ceiling
I have since moved, my new address is Marlene Elliott
2603 Golden Poinciana Place Sarasota, Fl. 34232
I owned my home in Georgia and my state farm insurance agent was Joe Bescel on Hospital Drive
please add me to this class action lawsuit. About 2 yreas ago we had bad snow, Ice, and wind damage on our roof. Not to mention the damage to the inside hallway and I didn’t report the back bedroom. All i wanted was for them to get us a roof. We pay every month, they should have helped more than $1400….I don;t know anywhere where you can get a roof for that…Most roofs cost $4000-$5000 or more in repairs. Because of old house.!…Why do i even have insurance?????
After a hurricane and earthquake hit my home in Southern Maryland, State Farm came in after a week or so to survey the damage. By that time myself & my 4 children had pulled out the carpet tiles, wall to wall carpet, gym equipment, furniture, etc. from the fully finished basement. Imagine 2,200 sq ft of all of the above. The smell from the items were getting bad and the mold was beginning to grow. When they finally came they would not allow for all that we had emptied out to be part of the covered items. We were suppose to leave it alone we were told so that they could get the pictures. I told them I had film of the water rising almost a foot high. They didn’t care. After a lot of back & forth and what they said they would cover was not going to cover half of the items destroyed. They wanted me to get the glassware that I had displayed & was crushed (I had all the pieces) to bring everything to an appraiser. Well, that appraiser did her appraisal & the money I did get from State Farm was NOT even enough to cover the cost of the appraisal. Needless to say, I am heart broken still today because I still can’t afford to pay for my Grandmothers items.
You see after State Farm refused to replace the entire 8ft walls of drywall because they only covered 4 ft. The contractor told me I need to fight for the 8ft of drywall because the insulation was a sponge & soaked up the water all the way up & the entire basement had to be brought down to the studs. State Farm refused.
Yes, I did have the basement (4ft up only) redone. The mold got so bad from the wet part we could not stay in the home. I lost the home I built from the ground up with my four children. We were going to be homeless & State Farm didn’t care. Wells Fargo took back the house in a foreclosure and we had to find other places to live.
I have been with State Farm for decades & they don’t really help you even if you owned the company. HEY STATE FARM….KARMA…… they are always sure to be in contact with everyone when the Premiums go up & you are expected to pay in full……yep, KARMA STATE FARM KARMA
My roof was damaged by hail and wind in 2012 roof was fixed and in 2014 had same incident. State Farm gave $400 to repair my roof and water damage. After repairs with the little help I got from them they canceled my policy June 4 2016. The reason was the claims department and adjuster said I never repaired my roof even after showing proof. Been with them over 10 years and this is what happens even when premiums went up we still got the shaft. Thanks state farm for nothing! I live in Oklahoma..
I filed for damage to my roof from the winter snow and ice, for the year of 2014, and having had the policy since 1992, was denied coverage for this claim. I was told I should have maintained the roof better, until this point I had no need to check roof condition. Really until something happens, why would someone be up on there roof checking the condition.
UPDATE: On Mar. 9, 2016, a federal judge issued partial certification in the class action lawsuit filed by homeowners who alleged that State Farm failed to compensate homeowners for the diminished value in homes that had water damage but were fully repaired.
I took out an annuity with state farm June 2009. The way it was explained to me made it sound like the account would grow and able to cash out lump at end, and the monthly payment was just a small part of interest earned. I am disabled and suffering financial hardship so I went to see about taking out the money to pay my debts, that’s when I was told I was stuck with small monthly payments and could not evenecessarily get my money back they have been using for years. I was lied to and talked into something I would not have done if it had been explained properly, it didn’t help that I was on pain medication for my back, I should have never signed that paper state farm had been good to me in the past so I trusted them. They lied to me and now I have to worry about paying my bills and buying food.