I have been paying my property taxes and my State Farm insurance premiums for my Orlando Home through my mortgage lender for almost 15 years. When I originally went to State Farm; which was conveniently located within a mile of my new home, I spoke to the Agency Field Executive Jesse Bagwell. I told Mr. Bagwell that I wanted the Maximum amount of coverage and the Minimum amount for any deductibles. Mr Bagwell was a very pleasant gentleman who followed my instructions and who serviced my policy until his retirement in 1995.
State Farm Property Insurance Of Florida Deductible Switch for Hurricane Insurance Coverage rip-off ...Before the storm
Soon after I received a letter stating that my homeowners insurance would be serviced by John Psomas still conveniently located at the same address. I received no other contact from State Farm Insurance since nor after.
In 2000, after years of persistent roof leaks due to a hail storm (also that State Farm Insurance lied to me about being a valid claim) I had Randy Allen Roofing remove and replace my roof (good man, Great Work). In 2004 I had my home Colorcreted (excellent spray-on stucco/paint product).
Alas, Hurricane Charley (August 13, 2004) hits Orlando, Florida.
The neighborhood sustained much damage, many roofs were severly damaged, not mine... completely intact (not even a loose shingle - thanks again Randy Allen Roofing), the 2 very tall trees behind my home fell and destroyed my stockade fence (about 175 feet long), all those loose and removed roof shingles from all the neighbors homes slammed into almost every inch of the new colorcrete stucco work (the house went from peach color to black tar streaks), the neighbor's tree fell across the front of my property (lawn) and destroyed 2 beautiful palm trees. The (up to 125 MPH) winds had blown rain under the shingles and in through the ceiling and stained the ceilings and carpets in two bedrooms. In All about $12,000. in damages.
After several phone calls to State Farm Insurance I finally received a return call from a secretary or agent named Brittany. She listened very attentively and then stated that I have a 5% or $11,300. deductible for hurricane damage. I explained to Brittany that I have had a 2% or about a $2,000. deductible since the policy was issued 15 years earlier.
She was vehement (passionate) about making the point that neither the State Farm branch nor the Main Branch keeps any records older than 5 years and that for the past five years my deductible has been 5%. I explained that I had never received a notice from State Farm telling me there were changes in my deductibles and further, that their estimated value of the property was very inflated. Did you ever try reasoning (or arguing) with a four year old? No matter what logic you use, they just keep repeating the same nonsense.
Eventually I got through that I never requested or agreed to an increase in my deductible and she stated that if I did not opt for the change that it would have stayed at 2%, but since they have no records older than 5 years and my deductible has been 5% on their records for all of those 5 years, then it is 5%. She also stated that my mortgage company was sent copies of my premium notices and deductible information. However, when I called her back on a three-way conversation with the mortgage company she denied making the statement and claimed she stated they only send out a notice of the premium due.
There are two points here... the first being that the insurance company can revalue your property every year to increase your premiums, and secondly, the more they value your home at - the higher your deductible because it is based on a percentage value of the home. A perfect lose, lose situation for the home owners. Eventually you home's value will be so high that your deductible will cover any possible damage.
The worst part is that more than 50% of the subdivision (about 400 homes) are insured with State Farm and almost all were astonished to see that their deductibles were also unknowingly at 5%.
Anyway, a lot of the neighbors are talking Class-Action suit and; thank God, one of the neighbors is a Class-Action suit attorney.
See them in court!!
Pat
Orlando, Florida