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State Farm sends mobile office to California
By Scott Miller
scottmiller@pantagraph.com
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BLOOMINGTON -- State Farm Insurance Cos. has deployed 60 Bloomington-based employees and a mobile office the size of a semitrailer truck as wildfires spread through California.

Still, the insurer doesn’t expect a “mega catastrophe” in terms of insured losses.

As of Tuesday afternoon, State Farm had collected 1,200 claims but had not put a price tag on the potential damage, said spokesman Fraser Engerman.

“Obviously the numbers of claims could grow, but at this point, we expect it’s a relatively small amount of claims as compared to a mega-catastrophe like a Hurricane Katrina. That’s not to diminish this at all,” Engerman said.

Losses from wildfires have historically been significantly lower than payouts from natural disasters like hurricanes or earthquakes, said Michael Barry of the Insurance Information Institute in New York.

Eight of the top 10 most costly catastrophes in U.S. history were hurricanes, with the 2001 terrorist attacks and the 1994 Northbridge, Calif., earthquake also made the list, according to III figures. Hurricane Katrina tops the list with about $42 billion in insured losses. No. 10 on the list, 2004’s Hurricane Francis in Florida, cost $4.9 billion.

By comparison, the most costly wildfire in U.S. history was in California in 2001, resulting in about $2.5 billion in insurance payouts, Barry said. All figures are in 2006 dollars.

Still, “I expect this is going to be a high-cost event because of the real-estate value in the area,” Barry said.

State Farm has not quit writing new policies in California, as rival Allstate Corp. did earlier this year, but Engerman said the insurer has taken steps to manage risk. State Farm insures about 21 percent of the California’s homeowner’s market.

He wouldn’t say how reinsurance — coverage for insurance companies — would play into State Farm’s payouts on wildfire claims.

State Farm tallied a record profit last year at $5.32 billion, stemming from the absence of any major catastrophe.

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Reader comments on this story - 40 total

Note: All views and opinions expressed in reader comments are solely those of the individual submitting the comment, and not those of the Pantagraph or its staff.

SF CLAIMANT wrote on Oct 27, 2007 11:26 PM:

" We had a house fire and had coverage with SF. We received expedited service. We paid our premiums for a fire policy, had a fire loss and were paid for a fire loss. Had we had a hurricane or flood loss, we would not have had coverage as we did not purchase this coverage. If you take on the responsibility of purchasing a home, you should be responsible enough to take on the responsibility of confirming you have the appropriate coverage for risks in the area in which you are living. Granted the flooding from Katrina was unexpected, but SF should not have to pay for something that is not included in their policy. Does your medical plan cover root canal work? "

Please wrote on Oct 26, 2007 10:14 PM:

" To Thankless job, I am a State Farm Cat wife and I have been to many cat sites, you people are very very well taken care of. I have experienced several asites where it is a big party, whether it be outside the Marriot or meeting up for happy hour, sorry no sympathy here!! The real hereos are the ones at home taken care of business! P.S.NO I don't depend on the income. "

Grey Matter Waste wrote on Oct 25, 2007 1:51 PM:

" To all those diversity fans...where does it stop? What about people who don't want to celebrate 'Christmas'? Stop Easter? Stop Halloween? Stop baggie pants? Stop the sale large SUVs? SF'ers think divesity applies only to a certain miniority group...they don't understand the danger...who really 'wins' in the end when we are all forced to change our beliefs to accomodate everyone else???? "

SFr wrote on Oct 24, 2007 6:16 PM:

" Diversity is good for me and good for you. Diversity means hiring the most qualified person for the job. The "Good Ole Boy's Club" days are over. Notice once again the mention of record profits last year. Like a good neighbor, diversity is there. "

To: WB x 2 wrote on Oct 24, 2007 4:29 PM:

" Last time I checked a “schilling” or “shilling” is a form of currency, so you need to consult your dictionary. I assume you meant I’m a “shill” for State Farm. In order for me to be a shill, by definition, I’d have to work for them, but pretend not to. I do work for them and am not pretending I don’t. The reason I went from being an independent adjuster to working for State Farm are for the reasons I expressed in my previous post. State Farm is the best, in my opinion, at adjusting claims fairly. I’m fully qualified to give that opinion because I handled claims for over 200 other companies. How many claims have you adjusted? To the other point, the “which came first” comment again shows your lack of knowledge. Both wind and fire are covered perils, so it doesn’t matter which came first, both are covered. With flooding, it’s entirely different, flooding isn’t covered, so which came first does matter. "

justin wrote on Oct 24, 2007 4:06 PM:

" I just want all the State Farm bashers to say "WE WERE SO WRONG" when SF does pay these claims... ignorance is bliss "

Ahhh.... wrote on Oct 24, 2007 2:10 PM:

" Looks like some people might be mad that they don't work for the best company in town so you have to criticize everything. *tear* "

Wannabee an agent wrote on Oct 24, 2007 2:08 PM:

" An insurance policy is available for almost any peril if you are willing to pay the premium. "

SF Claim Rep wrote on Oct 24, 2007 1:55 PM:

" You people are pathetic! OMG. We here at SF are trained to pay what we owe. I handle claims........ All insurance companies deny claims. SF was not the only one that did in Katrina claims. If you don't have the coverage, because you chose not to purchase it, then it is not covered. You get what you pay for....plain and simple. And yes....it is A LOT more work for us to deny a claim than it is to pay for it. We DO LOVE IT when there is coverage that applies (that the policyholder purchased), so it is less work for us. "

Here we go again wrote on Oct 24, 2007 1:25 PM:

" It's amazing how many insurance "experts" there are in this community that chime in any time there is an article about Big-Bad State Farm. I'm not exactly sure why the catastrophe trailer heading to California is news-worthy, but a lot of you need to get off your high horses and realize that you know about 5% of the entire story from the Katrina disaster, which is spun by lawyers to try to gain sympathy and make them rich, or by the news media that is trying to sell papers or gain viewers. "

to all the SF bashers wrote on Oct 24, 2007 1:00 PM:

" you people freakin amaze me, you know that? Your ignorance of the insurance industry is unbelievable. I'm guessing you all have SOME kind of insurance coverage. Just how many of you have actually read your policies to see what coverage you have? Probably not alot of you. So, let's just bash on SF a little more, cause I'm not smart enough to figure out if I'm covered for something. Give me a break, you bashers make me ill. SF is damned if they do and damned if they don't. "

To all the Doubters wrote on Oct 24, 2007 12:51 PM:

" Why all this bashing of the Insurance industry? What exactly would all the former-college-athletes-who-weren't-good-enough-to-turn-pro do for a living were it not for the Insurance industry? "

Jimbo wrote on Oct 24, 2007 12:26 PM:

" As usual in human nature the people with the least amount of knowledge, education, information, are the same ones who feel the overwhelming need to speak and educate. "

How in the world.. wrote on Oct 24, 2007 12:02 PM:

" can you say State Farm or Allstate are intentionally denying claims??? Did you even READ the article? 42 BILLION in paid out claims for Katrina. Do you have a clue as to how much money that is or are you just an idiot? 42 BILLION paid out.... Look at the Oakland fires, 4.2BILLION .... folks thats BILLIONS of dollars paid to insurance policy holders. To say these companies intentionally deny claims for profit is moronic. Your arguement is ignorant. Do you happen to know that State Farm lost BILLIONS of dollars a few years back? Did you? "

to: To: WB wrote on Oct 24, 2007 11:35 AM:

" Which came first the wind or the fire. If it was the wind SF will try to find away to not pay for the damages because the wind (act of GOD, Mother Nature) caused the house to catch fire. Remember they have been trying to say that the water damage happened before the wind damage in the gulf. Sorry winds come first in hurricanes. Now let us wait and see what they pull with the fire and wind. "

To: To WB wrote on Oct 24, 2007 11:29 AM:

" "State Farm does a great job handling claims" ..I am a former independent claims adjuster.. and.. hey.. can I get in on this whole fire deal too? Give me a break. You are schilling for them and dont even work for them, pathetic. "

to: to: Geeze wrote on Oct 24, 2007 11:28 AM:

" SF must be cutting your checks huh? With the money from the 'improper coverages' denied you must be sitting pretty now. "

To: WB wrote on Oct 24, 2007 10:15 AM:

" There is no "Deny Stamp." Your statement just proves to me how little you actually know about insurance and legal matters. As a former independent adjuster, I have worked for many different insurance companies and self-insured corporations. I can tell you without reservation that State Farm does a great job adjusting claims. They try to find a way to provide coverage and only deny the claim if there is absolutely no coverage provided for in the insurance policy. I have seen some other companies try to find ways to deny a claim, but not State Farm. I seriously doubt you will see news stories about State Farm denying fire claims in California. Fire is a covered peril under most any homeowner's policy. The only way to get denied on a fire claim is if you set the fire yourself (arson) or if you let your policy lapse by not paying your premiums. WB, you need to get a clue! "

Re: To Geeze wrote on Oct 24, 2007 10:14 AM:

" Buy the proper coverages. The are an insurance company...not the Red Cross. "

Real "Farmer" wrote on Oct 24, 2007 9:58 AM:

" "SF'r" must be one of the "minorities" who gets a raise and promotions because of being a woman or minority. Last years revenue has absolutely nothing to do with diversity. Diversity is why the cost of doing business is so high for the company. One of these days when Geico is #1 in the market, maybe they will wake up. "Give the best jobs to minorities and women . . it doesnt matter if they can actually DO the job". State Farm doesnt care who is the most honest and hard working employee, they just want their numbers to look good. I have lived here my whole life and am a white male, and actually worked on a farm growing up in Cooksville . . I am the "minority'. Diversity is, on the other hand, a good thing for people that cannot get ahead by working hard and being honest. The truth hurts . . and sometimes it hurts REALLY bad. "

To Geeze wrote on Oct 24, 2007 8:26 AM:

" Obviously you have never been on the receiving end of a DENY stamp from an SF adjuster, or any other claims adjuster for that matter. Why dont you ask the people living in FEMA trailers 2 years later what they think. "

Observation wrote on Oct 24, 2007 8:23 AM:

" I've noticed that those who seem to complain most about State Farm are: 1. People who couldn't get a job there. 2. People who worked there, but were let go. 3. Former insureds that had a claim denied or policy cancelled at one time or another. As for the California wildfires, I'm sure the ambulance chasing Dickie Scruggs will be making a bee-line out there even before the fires are put out to get a piece of the action. "

To: Cat employees wrote on Oct 24, 2007 7:27 AM:

" Yes, these people do get paid well but they earn their money and they deserve it. So stop bashing these people and do something more productive with your time. Thanks to all the claims people for what they do. "

To: Cat Employees wrote on Oct 24, 2007 6:58 AM:

" All you say is true; we don't expect you to feel bad for us. That still doesn't make it an easy job. And for the record, no one enjoys denying a claim. The job is "easiest" (from a claim rep's perspective) when the proper coverages are in place and the damage can be paid for in full. What many don't understand is that denying a claim is a WHOLE lot more work than writing a draft. Unfortunately, when the proper policies are not purchased, denying a claim is the only ethical thing to do - for the benefit of the rest of the policy holders who have purchased the correct coverage. "

Jesus Saves wrote on Oct 24, 2007 6:50 AM:

" Why send the mobile office there? Is it to create a false sense of security? It's not like State Farm intends to pay on any of their policies. It'll be another Florida or Louisiana incident. "

Profit wrote on Oct 24, 2007 6:30 AM:

" Came from still not paying for the loss that happen in N.O. during the hurricane. "

I was there wrote on Oct 24, 2007 2:21 AM:

" I GUESS everyone forgets the eye of hurricane katrina went through mississippi. I wasn't just Louisiana it was Mississippi that took the brunt from the hurricane but people don't care about that they just care about the poor people hat lost nothing becuse they had nothing in New Orleans. Take a look at Bay St. Louis and Gulfport mississippi and tell me that was man made it sure wasn't. And state farm didn't cover any of that i know i work at a site in Gulfport Mississippi for 60 straight 12 hour+ days. I would never have State Farm for home insurance becuse i know how many people they turne away day after day after day people looking for some hope they shot down really bad stuff. "

Cat employees wrote on Oct 23, 2007 10:55 PM:

" Cat employees aren't forced into the profession, they know what to expect when they take the job, and they get paid (really) good money for it, not to mention most if not all their expenses are paid while on site. Don't feel bad for them, it's their job. "

thanks wrote on Oct 23, 2007 10:04 PM:

" Thanks for the hard work that the claims folks do. People who paid for their insurance will be very grateful. "

To: Geeze wrote on Oct 23, 2007 8:30 PM:

" Like a hammer, you hit the nail right on the head! "

??? wrote on Oct 23, 2007 8:30 PM:

" Well when it is The Big Easy SF will just wait to get sued; however, if you live in Malibu...well that is another story. "

SF'r wrote on Oct 23, 2007 8:17 PM:

" Notice the article mentions the record profit made last year. This is diversity in action. I think that if we increase diversity (aka reverse discrimination), you will continue to see increased profits. "

Geeze wrote on Oct 23, 2007 8:16 PM:

" Always pleasant to see how when people are losing their homes, their valuables, their pets, and oh hey, a couple of LIVES, that people here would rather bash State Farm. Why not grow up and get a life and do something meaningful with it. State Farm employees go to work every day to do a job just like you and I do. I'm sure they don't get off on denying claims and giving people bad news. I, for one, am glad that it's not my job to go set up a claims station in the midst of multiple out of control fires and work face to face with people who have just lost everything. "

Presbyopic Clown Insurance wrote on Oct 23, 2007 8:15 PM:

" State Farm tallied a record profit last year at $5.32 billion, stemming from the absence of any major catastrophe. Thank you Pantagraph Publishing Co for reckoning that there R good years and bad years. "

?? wrote on Oct 23, 2007 8:09 PM:

" Which came first the fire or the wind? Did the wind cause the fire to get to the house or did the builder build the house in front of the fire? Those are the questions and some insurance company will let the government know ! "

Thankless Job wrote on Oct 23, 2007 7:58 PM:

" Won't be long before someone starts the tired old standard "Katrina/Deny/Big Old Mean Insurance Company" talk. But what about the hundreds of catastrophe employees who have worked 18 hour days, 6 thankless days a week for the last 2 years, came home for 3 days to see the wife and kids, and are now driving straight through to help people in California. They get a kick out of people who have no idea how insurance works who say every moment they spend with customers is just a farce so SF can deny claims and make a profit. Guess what. Profit is good, but keeping a promise to someone who lost everything, and had the proper coverage, is even better. Get a life. "

To WB and all like you wrote on Oct 23, 2007 7:46 PM:

" You have no idea what you're talking about. Like other minions and lemmings, you read a Scruggs-sponsored "anti good neighbor" electronic billboard and believe that of the thousands of customers State Farm covered in Louisiana, only three were paid. Geez! "

To: Oh No wrote on Oct 23, 2007 7:10 PM:

" I for one appreciate the work that you do. "

WB wrote on Oct 23, 2007 6:56 PM:

" they've got their great big DENY stamps polished and ready to go. Remember..just like Katrina, this fire was possibly man made and SF does not pay on man made disasters. Just ask the people in Louisiana and New Orleans. "

Oh no, the humanity... wrote on Oct 23, 2007 6:25 PM:

" a semi trailer sized office will need to be pulled by a semi truck, and according to many in Pantagraphland, we drivers are all rude bullies who don't care about the safety of those around us (and they themselves are blameless for any bad driving, it's all the trucks). Best wishes to SF for getting their mobile command post out their safely. ***Sarcasm for the humorless on the prairie. "
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