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State Farm’s “Additional Coverages”: When More Actually Means Less

By January 9, 2018July 9th, 2018No Comments

homeowners insurance additional coveragesWhen you see the words “Additional Coverages” written in your insurance policy, you must think that you are about to be given more coverage, right?


As contradictory as it may sound, when it comes to State Farm’s Homeowner’s Insurance Policies, “Additional Coverages”, according to State Farm, can sometimes mean that coverage is being taken away. Luckily the Court disagreed.

Under the endorsement “Additional Coverages” – specifically in relation to water losses – State Farm’s Policies provide “coverage” for the cost of tearing out and gaining access to the specific point where water escapes. However, many times, the specific point where the water escapes is different from where the damage is worst.

For example, if a broken drain line in your home causes water to overflow from the toilet, State Farm tries to only provides coverage for the cost to access the toilet, rather than to access the broken pipe. This means that, if the broken pipe is hidden deep within your walls or the floor of your home, State Farm will claim it doesn’t owe to reimburse you for the cost to tear out your walls or floor and repair the broken pipe.

Under State Farm’s previous policy, it would have paid for the access to the broken pipe regardless of whether or not water escaped from that break. It would have also paid for the resulting damage. This is critical because this endorsement for “Additional Coverage” also indicates that it is “not intended to change coverage.” This means that, although State Farm is advertising certain portions of the Policy as “additional coverage,” the way State Farm is attempting to interpret this “Additional Coverage” is in fact taking coverage away.

Here at Wheeler, DiUlio, & Barnabei we are fighting to hold State Farm accountable for tricking their policyholders into believing that they are being provided “Additional Coverage.” In October 2017, a panel of Arbitrators found in our favor, and held that State Farm’s misleading practices were a violation of Pennsylvania Law. State Farm has since appealed this ruling to the Philadelphia Court of Common Pleas, where we will continue the fight for all policyholders against State Farm’s deception.

If you’ve been denied coverage due to State Farm’s misleading Policy language, give us a call. We’ll review the terms of your policy and fight to make sure you get the reimbursement you deserve.

Click here to contact an attorney at Wheeler, DiUlio, & Barnabei.