I work in insurance (not at State Farm) taking claims by phone. I’m not a licensed adjuster. I also do not live or work in your state. Additionally, I rarely have an opportunity to look at property claims, although I DID take several claims for Sandy because we were so busy. I’ve picked up a lot of general insurance knowledge as well, from reading adjuster notes every day for years.
Now then. In your situation, I would start by calling your State Farm adjuster. Be polite, be composed, and be firm. *Do not *lose your temper. I know it’s a stressful situation. But if you are rude, yelling, or cursing, the adjuster will hang up on you and tell you to call back when you’re calmer.
The first thing you should do is ask to be sure they have received a copy of your independent assessment. It’s a big company, and paperwork can get misdirected or misplaced. If they have received it, ask them why they’re denying such a large portion of your claim. My *guess *is that they’re going to point to an exclusion on your policy. By any chance, was the preponderance of your damage caused by floodwaters? One nearly-universal exclusion on homeowner’s policies is water damage caused by flooding. If that is the case, State Farm is only obligated to pay for the damage caused by wind. Like if the wind knocked down a tree that ripped a hole in the side of your house and rainwater fell into that room, causing water damage? That would be covered. But devastating water damage on your first floor due to water rising up and coming through the doors and windows? Wouldn’t be covered, no matter how bad it is, because it’s a flood. You would only be covered for flood damage if you had previously purchased a national flood insurance program policy in addition to your regular homeowner’s policy. Or if you purchased a “flood rider” through State Farm (not available everywhere, and not every insurance company offers them).
If your damage is NOT from rising water or flood, though, ask why there’s such a large discrepancy between your list and the check they issued. If they hem and haw and don’t point to anything specific, ask for the itemized list they based the check on. Compare the lists and call/write back to dispute it. If that doesn’t get you anywhere (which I can’t imagine), ask to speak to the adjuster’s supervisor. If you adjuster is dealing unfairly with you, their supervisor will intervene.
The chances they are dealing in bad faith with you are very, very low. State Farm’s not a fly-by-night company. However, if you’re still not satisfied with their decision, you can apply for third-party mediation by the American Arbitration Association. This information ONLY applies to New York claims, and ONLY if one or more of these criteria are met:
- Damage dispute to the tune of $1,000+.
- 45-day (or more) delay in claim processing after your documents proving the claim were received.
- Claim was denied in part or in full.
If any of those criteria apply to you (and from your description, two of them do), then you can request free mediation through a company that New York selected to handle Sandy mediation statewide:
In writing:
American Arbitration Association
Storm Sandy Mediation Claims
120 Broadway – 15th Floor
New York, NY 10271
By phone: 855-366-9767, 855-366-9768, or 917-438-1660
By fax: 646-845-1958 or 917-438-1600
By email: [EMAIL=“StormSandyNY@adr.org”]StormSandyNY@adr.org
Even if your claim gets denied as a result of a specific exclusion on your policy, you should apply for mediation. It doesn’t hurt to try! You should also consider applying for disaster relief through FEMA’s website if you haven’t already.