Noel Wise experienced significant water damage in her home when plumbing issues caused her kitchen to flood. After attempting to address the situation, she filed a claim with State Farm, which was denied. The denial was based on the company's policy relating to 'seepage or leakage' being classified as a continuous issue rather than a sudden accident. This situation reflects a broader trend observed in California, where State Farm reportedly uses similar reasoning to reject claims related to water damage, leading to allegations of improper claims handling in lawsuits against them.
"State Farm has regularly used similar reasoning in recent years when refusing to pay for water damage in California, according to attorneys and claim evaluators who work on behalf of policyholders."
"The company has relied on a policy that says it won't pay for damage to homes caused by a 'seepage or leakage' of water 'that occurs or develops over a period of time.'"
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