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.
Complaint: Farmer's Insurance
Farmer's Insurance $650,000 Delay Game by Denial After one year, Farmer's denied coverage on a total loss with no evidence
We lost our home to fire on May 20, 1995. Farmer's Insurance denied coverage in April, 1996, based on "fire of suspicious origin". We've entered an extended lawsuit wherein our attorneys and their expert witnesses have established there is zero evidence to support Farmer's claim and this whole thing is about delay of payment.
When presented with our evidence, Farmer's hired a second "Fire Investigator" (approximately 18 months after the fire), to try and strenghten their case. They then made a weak attempt at settlement. This was in Oct., 1997.
It is now October of 1998 and we have been delayed payment three and one-half years since the fire. We're waiting for a court date as the previous three have been delayed. Our attornies advise us it will probably go to five years (statue of limitations) before we'll get to court. And then Farmer's will probably try to settle.
Meanwhile our family and our financies have been devastated. We purchased the best "deluxe" policy available and paid on it for many years. When we need it, we learn the insurance business is a big game. Its all about "delay of payment" as the interest Farmer's earns on the $650,000 they owe us is over $5,000 per month income to them. Six years (one year to deny the claim and five to get to court) at $5,000+ compounded monthly interest income will earn them more than the $650,000 they owe us.
Further, they routinely deny over 50% of large claims hoping the people will give up, divorce, get discouraged and take less or just die. What a glowing example of integrity and empathy from an American Insurance Company.
As I see it, an insurance company only has three avenues to make money: Charge more, pay less, or invest agressively; each of these carrying their own separte risks. Very unfortunately my family is experiencing Farmer's most unrisky money making avenue: "Screw the customer, let them rot in Hell, and either never pay or wait long enough to have the claim help pay its self."
If anyone who reads this has similar experience, please contact me in regards to a class-action lawsuit.
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