Home Insurance Forum

Dec. 16, 2007

I am in the middle of a fire insurance claim with State Farm. The party that they suggested fix my house has not done the job as outlined by State Farm specifications. It has been 100 days since the fire. Our house is worse off now than before. State Farm has paid the repair company in full. Now State Farm wants to pay us $8,000 to fix what the other company did wrong.

The repair company wants to settle with us but I feel that they lied to us by telling us that things were not covered by State Farm but now we find out they are. What are my options?

Bob, North Carolina

Dear Bob,

In general, it is up to the repair company to make things right.

While your insurance company can suggest a repair company, it is up to you, the policyholder, to decide who makes the repairs. You should always make sure that your repair company is bonded, or insured. That way if something should happen to your repair company, their bonding or insurance company should pick up the tab, not yours, according to Phil Supple of State Farm.

In addition, it should be your State Farm agent or claims person who decides what is and is not covered by the repair company. Typically, they would be expected to do a walkthrough of the house to make that determination. The repairs would also be tied to your individual home insurance policy limits. They give you the check, and you work directly with your repair company to make sure everything is done correctly.

State Farm does have a policy that it is piloting in a few areas where it recommends the repair company, and if you agree to have that company make the repairs, State Farm will guarantee that those repairs are done, and done right. Those pilot areas are Tulsa, Okla., Atlanta, Ga., and Minneapolis/St. Paul, Minn. If you are a resident of one of those areas, and you agree to accept State's Farm's choice for a repair company, then State Farm should pay to have those repairs completed to your satisfaction.

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