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Did you know some insurance companies won't pay if....

They rule a fire is arson, even though the home owner is notthe one who set the fire?! So basically, you get to be victimized TWICE?! I just found out an acquaintance who had State Farm Ins, was denied her claim, b/c someone else, who has yet to be caught, set her house on fire. Not only is she now homeless & staying with friends, her credit is ruined b/c she stopped making payments on a house that she is no longer able to live in. What's the point in paying those high premiums, if they find a way to get out of paying for something like this?! It's sickening. :(

 
mrsmom110

Asked by mrsmom110 at 8:45 AM on Apr. 5, 2013 in Home & Garden

Level 48 (281,415 Credits)
This question is closed.
Answers (19)
  • Is it in your policy as well? I would say if not, she had a bad lawyer, I have State Farm as well, and now am going to hunt for the policy, this should be criminal, maybe she should go to the news? I was never aware of this, and I assume many other people are not as well! You can be mrsmom on a mission!
    jerseydiva

    Answer by jerseydiva at 10:32 AM on Apr. 5, 2013

  • That's horrible! I believe it, though. Especially from State Farm. They did a lot of shady things to people after Katrina as well.
    tessiedawg

    Answer by tessiedawg at 9:12 AM on Apr. 5, 2013

  • I wonder if, like someone else said already, maybe they will pay once the arsonist is caught? Until someone is caught, for all they know, she set the fire herself and is just claiming someone else did it. I could see that being a reason not to pay out, but then once they catch someone and someone is convicted, then it seems that they should pay out.

    If I were her, though, I think I'd keep fighting it. She's already lost everything, so she has nothing to lose at this point.
    wendythewriter

    Answer by wendythewriter at 10:36 AM on Apr. 5, 2013

  • Really? I can't believe it, what if someone vandalized your home, would they pay then? I just don't see how you can be the victim of a crime and have to bear the brunt of losing your whole house? Are you sure it wasn't someone who was on the policy that set the fire? Her disgruntled husband or something?
    jerseydiva

    Answer by jerseydiva at 8:56 AM on Apr. 5, 2013

  • Often they will pay AFTER they find the arsonist. They want proof that the home owner was not the one to set the fire.
    baconbits

    Answer by baconbits at 9:41 AM on Apr. 5, 2013

  • doesn't surprise me, insurance companies are selfish bastards.
    LostSoul88

    Answer by LostSoul88 at 9:49 AM on Apr. 5, 2013

  • Can she sue them? You hear about people paying people to set stuff on fire for insurance all of the time, I would be demanding to see exactly where that clause was in my policy, I think she needs a lawyer, makes me so sad for her!
    jerseydiva

    Answer by jerseydiva at 10:24 AM on Apr. 5, 2013

  • Okay, I just did a quick search on State Farm and arson, it clearly states that as long as the homeowner had been resolved of the crime, they must pay. I assume her policy etc was up to date?
    There is also help that may be available from the company she has the loan with, they would most likely like to have what is owed on the house, was it a complete loss? The case I was reading about was in Texas, and the homeowner got the money, plus all of the fees etc.
    jerseydiva

    Answer by jerseydiva at 10:37 AM on Apr. 5, 2013

  • I would make some phone calls for her, it sounds like she didn't have a good lawyer, and see if she is willing to let you contact the news, State Farm would not enjoy bad press, at the very least, someone may see her story and be able to offer some help!
    jerseydiva

    Answer by jerseydiva at 11:14 AM on Apr. 5, 2013

  • PS- can you tell I am a bit obsessed with this? I called my friend who is a lawyer, he said that unless it is spelled out that arson is not paid for in her contract that she will be able to re-coup her losses. If it is spelled out in her contract, and her agent did not inform her, she still may be able to get it resolved.
    I just found our insurance policy and can't find anything about arson in it at all.
    jerseydiva

    Answer by jerseydiva at 12:33 PM on Apr. 5, 2013

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