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Post Date:  05.08.10

Oh, rats!

Our local CBS affiliate (KPIX San Francisco) reported on a story where a woman’s insurance claim for auto repairs were denied because the cause of the damage (rats chewed her wiring) was not specifically named in the policy. Farmer’s Insurance stated that their “comprehensive” coverage only covered the specific causes stated in her policy, what they called a “named peril” policy. According to the insurance company, her damage was covered only if it was caused by missiles, civil commotion, explosions or earthquakes. Needless to say, the woman dropped Farmers (she had been insured by them for 20 years) and filed suit.

I am not surprised to hear this as Farmers has long had a policy of, shall we say, seizing the slightest opportunity to get over on people. I had been insured by Farmer’s Insurance for ten years (without an accident or claim) at the time of my divorce. I should also point out that I had my own policy with them prior to my marriage and had kept it through my marriage. My husband had his own car and policy (Allstate). He was never added to mine and I was never added to his. After seven years of marriage we divorced. My policy came up for renewal approximately three months after the divorce was final and I was shocked to be invoiced for four times my normal premium. When I called my broker to ask about what I was certain was a mistake I was told that there was no mistake. I was divorced for less that two years and was therefore considered “emotionally unstable” and at “significantly higher risk”. Needless to say, I, too, dropped Farmers Insurance like a hot potato and went with California State Automobile Association (for about one third the Farmers premium). I have now been with them 40 years, also without an accident or claim.

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