The "Farmers Insurance News-Alert" website is dedicated to providing the consumer and general public with detailed information concerning the Farmers Insurance Group. This includes fraud reports, consumer complaints, lawsuit's and other legal actions taken against this company. All information contained herein is for educational purposes only. Original sources, when known are sited.
|Friday, October 25, 1991
Insurers, Clients Pick Up Pieces After Fire
By: NANCY RIVERA BROOKS and MARTHA GROVES
State Farm on Thursday boosted its loss estimate to $350 million, which pales beside
the company's $18-billion reserve. So far, the company has received 850 claims,
spokeswoman Marcela Iglesias said.
"Industry bashers say, 'These companies are ripping us off. Look at the surpluses they have,' " said John Millen, spokesman for Farmers Insurance. "They don't put it in the context that this is the policyholders' surplus to pay claims." Farmers' surplus is about $2 billion.
The most immediate concern is finding policyholders, some of whom were too devastated initially to remember to call their insurance company. Insurers are bringing in "cat" teams--short for catastrophe--who are visiting shelters and cruising neighborhoods looking for clients. They are advertising special 800 numbers and are writing checks for emergency living expenses. USAA has even mobilized a special shopping team to help its clients replace the odds and ends of their lives.
"They do everything from just your mundane replacement to if you had estate china
and you want to replace it, we'll find it for you," spokesman Hal Schade said. The
San Antonio-based company's losses are
One particularly odd sight: MetLife--a life insurer, not a home insurer--sent its blimp cruising over Oakland on Wednesday reminding people to "Get Met."
His forehead smudged with ashes as he walked through the vestiges of his Oakland hills
home, Miles clicked off a list of irreplaceable collections that his grandfather, father
and he had amassed: Civil
Although many of the items were not insured, the house was, and Miles was grateful that
Albert Martinez, a field representative with Charlotte, N.C.-based Royal Insurance,
arrived to assess the damage so quickly.
As uninsured renters, Gregg and Stephanie Chow were still reeling from the shock of losing everything after their apartment complex was reduced to ashes. Then Gregg found out that his treasured 1967 Mustang, his first car from high school days, was not covered for fire damage by Mercury Casualty, a unit of Los Angeles based-Mercury General.
"I knew that I didn't have collision (coverage) on it, but it was never expressed to me that it was not covered for fire or theft. . . . It could have been my fault for not knowing," the 27-year-old Chow said. "But to find out in a time of need they weren't going to come through for me, to find out the insurance company that I've been pouring money into for the last 10 years is not going to stand behind me, is very nerve-wracking," he said.
To cope with claims, insurance companies have brought in scores of adjusters from across the country and set them up in special command centers created, in some instances, overnight. State Farm has 120 people working the disaster, Iglesias said. The company has leased four mobile homes as roving claims offices, providing a refreshment- and restroom-equipped place for adjusters and policyholders to relax and fill out papers.
Policyholders of Allstate, a Sears, Roebuck & Co. unit with about 100 adjusters in
the area, can cash their claims checks at Sears stores and receive discounts on
merchandise there, said Robert Ushana, property
The claims adjusters, many of whom will be based in Oakland a month or more, are having to add "psychiatrist" or "counselor" to their list of regular business skills.
"You're dealing with people who are devastated, and they unload on you," Iglesias said.
Rivera Brooks reported from Los Angeles and Groves from Oakland. RELATED STORIES: A1,
* Farmers Insurance: $100 million plus
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