Was I the Only One With the Urge to Barf When the Farm’s Commercials Aired

I gotta admit after Katrina the early State Farm response was that of a well oiled machine. Only later did claims management cook engineering reports to fleece their policyholders. My advice to those with insured losses in Gustav would be to hire a public adjuster to start and begin scouting for competent legal help just in case. Insurance industry lawyer David Rossmiller explains why:

One, this “inherent conflict of interest” certainly exists, just as it exists whenever you file a first-party property claim. This is not very startling, because it has been said — wait while my computer comes up with the final tally — 3,456 kajillion times before in insurance literature. For many of you the following explanation will be something you know already, but many don’t know it, so I am going to set it down in writing here. As you may or may not know, when someone makes a liability claim against you, say you ran into them with your car, your insurer owes you a fiduciary duty, assuming a duty to defend arises out of the allegations and the language of the insurance policy. A fiduciary duty is the highest duty imposed by law, and requires one to treat another’s interests like one’s own, resolving all conflicts of interest in favor or the insured. These type of liability claims are called third-party claims. In contrast, claims you file with your own insurer for damage to your house or other property are called first-party claims. An adversary relationship is assumed to exist between the insurer and insured from the time the claim is filed, and generally speaking, no fiduciary duty arises on the part of the insurer. Emphasis Sop

A policyholder equipped with the facts is less likely to get fleeced. Remember that no matter how big the smile and reassuring the words there is someone working hard behind the scenes (such as State Farm’s Lecky King after Katrina) to minimize, low ball or otherwise reduce the amounts to which you are contractually entitled.

sop