Louisiana Agreement gets additional money in hands of policyholders
State Farm Fire and Casualty has reached an agreement with the Louisiana Department of Insurance to reevaluate Louisiana foundation-only (slab) claims caused by storm surge to determine if there was also damage caused by wind.
To date, State Farm® has paid almost $1.7 million to policyholders through this process.
State Farm has handled nearly 300,000 claims from these two storms. Despite our efforts to resolve them, a few (less than one percent) Louisiana claims arising from these hurricanes remain in dispute.
This agreement was reached in an effort to resolve any remaining questions or differences of opinion in a fair and efficient manner. Eligible State Farm policyholders were mailed letters from State Farm providing information about this process and how to participate. Who is eligible?
- Policyholders living in Louisiana with foundation-only (“slab”) claims caused by storm surge, including:
- Those who participated in Louisiana Department of Insurance mediation—regardless of whether they reached a settlement and
- Policyholders with litigation pending against the Company (they will be contacted through their attorney).
This process is completely voluntary. Here is how it works:
- Eligible policyholders will receive letters from State Farm providing more information about this program and instructions for participation.
- Those deciding to participate in the reevaluation process are required to mail back a written form to State Farm. We will conduct a review and consider all new claim-related information.
- After reevaluation, State Farm may make a settlement offer based on the new information received and guidelines agreed upon by State Farm and the Louisiana Department of Insurance. Offers will be based on losses caused by wind or wind-driven rain, and will not include losses from flood or storm surge.
- At any time during the process, policyholders can choose not to participate. Until an offer is accepted, policyholders remain free to pursue all of their legal rights. Policyholders can also request participation in the Louisiana Insurance Department’s mediation process.
Policyholders with questions about the reevaluation process may call 1-866-752-8746.
We believe this agreement with the Louisiana Department of Insurance is in the best interest of our policyholders and provides an avenue to get these matters resolved in a fair and efficient manner.