When it came time to purchase small business insurance, the Gileses looked no further than local State Farm agent Darryl Brooks.

“[With] Darryl being a small business owner as we are, it really helps him to understand us, how we operate, and understand our needs, and just relate – this is what we go through,” said Ozzie Giles.

The Gileses and Brooks are featured during this year’s national NBCUniversal Open Doors campaign, which is an initiative sponsored by State Farm that supports diverse, small businesses by providing access to marketing and advertising resources to help spur and sustain growth. This is the third year that State Farm and NBCUniversal have worked together on this campaign.

According to the U.S. Senate Committee on Small Business & Entrepreneurship, minority-owned businesses account for more than half of the two million new businesses started in the U.S. in the last 10 years. These successful ventures have helped to create 4.7 million jobs and there are now more than four million minority-owned companies in the U.S.

The NBCUniversal Open Doors website offers free downloadable resources, tips, strategies, advertising tutorials and best-in-class business practices, providing the necessary tools to allow small business owners to thrive.

Brooks and the Gileses are one of four pairings of State Farm agents and their small business insurance customers who will be spotlighted in this year’s NBCUniversal Open Doors campaign.

Other spotlights include:

• Stephen Evans Jr., owner of Stevie E’s Place barbershop, and his State Farm agent Coriano Johnson in the Akron, OH area (August)
• Desiree Chamorro, owner of K9 Cafe Boutique & Spa, and her State Farm agent Crystal Fuller in San Antonio, TX (September)
• Jenna Horning, owner of Bean’s Ice Cream, and her State Farm agent Susan Eacho in Poquoson, VA (October)

For more information on State Farm small business insurance, please visit our website or contact your local agent.

State Farm, a trusted leader in the insurance industry, has always been committed to enhancing driver safety. With the introduction of the new Accident Assistance feature to Drive Safe & Save they've taken that commitment to the next level.

The new Accident Assistance feature helps the driver when immediate next steps may seem unclear during the stressful moments following a collision.  It will guide the driver through the next steps, including making sure everyone is safe, calling the authorities, arranging for a tow-truck if needed and helping get a claim started. In the event there is no response, and they are left unable to respond to outreach, a wellness check will be requested at the scene of the detected accident.

The early reviews are very positive. Customer surveys and interviews indicate how they felt supported, cared for and provided comfort and ease in a time of distress.

Drive Safe & Save

We’re all looking for ways to save money, and one of the best ways to save on your State Farm car insurance is by signing up for Drive Safe & Save. Our driving program collects basic driving information to help you put money back in your pocket. Enjoy a 10% discount* just for enrolling, then up to 30% in savings** based on how you drive. Customers will also receive valuable feedback on their driving habits and understand where there’s room for improvement.

A 2023 analysis from Cambridge Mobile Telematics revealed:

• Drivers who get feedback on distracted driving are 25% less distracted.
• Drivers who are highly engaged with the app are 57% less distracted and reduce distraction by 20%.
• Risky drivers who are highly engaged with the app have shown improvement in driving habits that include a reduction in speeding by 27% and hard braking by 9%. 

Drive Safe & Save savings not only provide financial benefits to our customers but also encourage responsible driving practices that contribute to overall road safety.

How Accident Assistance works

Once enrolled in Drive Safe & Save, ensure the Accident Assistance feature is turned on.

Accident Assistance will notify you if an accident is detected. 

You'll have 60 seconds to respond to the app. If you do not respond, you may receive a call. 

If you do not acknowledge the app and/or phone call, a wellness check may be initiated by law enforcement.  

Once you acknowledge that you've been in accident, you will be asked if you need and ambulance. If you answer YES, you will get a call to verify. If you answer NO to an ambulance, you'll then be asked if you need tow assistance.

In addition, you can begin the steps to file a claim if needed. 

^{Disclaimer
*Setup required.}

^{**Discounts may exceed 30% and vary state-to-state (NY capped at 30%). Not available in CA, MA, RI and may not be available in NC depending on individual facts and circumstances. Setup required.}

^{Each State Farm insurer has sole financial responsibility for its own products.
State Farm Automobile Insurance Company
State Farm Indemnify Company}

^{State Farm County Mutual Insurance Company of Texas Richardson, TX}

A Grand Junction, Colo., customer was surprised to see strangers parked in her driveway. After all, it wasn’t the best time for visitors. She’d recently been evacuated from her home as a wildfire raged in west-central Colorado. She’d only gotten permission to return to care for the chickens she’d had to leave behind, along with other much-loved possessions.

Luckily, the strangers turned out to be wildfire defense personnel State Farm^® hired to protect her home. They turned on and repaired irrigation lines and stayed close to keep an eye on things. They reduced the spread of the wildfire, saved her home and her chickens.

“The customer was in awe,” said State Farm Agent LaVonne Gorsuch. “She said State Farm saved their home. If those men hadn’t been there, the fire would have destroyed it.”

Services that Save

State Farm introduced Wildfire Protection Service in February 2020 for Homeowners (non-renters) in Colorado and Oregon, where approximately 500,600 State Farm policyholders could benefit from the service. The service is added at no additional charge.

During the initial phase of testing, the wildfire response vendor responded to 29 wildfires and visited 1,792 properties, saving over 70 homes from wildfires. No properties were lost once the vendor visited a home identified as being in harm’s way.

Starting April 1, this service will expand to California, Arizona and Washington and include Farm and Ranch customers. These states have seen a significant increase in wildfires in 2020.

This program can give customers peace of mind and help protect property from wildfire peril, offering a new opportunity to be there for our customers when needed most. “We had some fence damage and some smoke damage, but our home is safe,” the Colorado customer said. “Thank you, thank you, thank you... State Farm was there.”

What are my first steps if I have damage?

What can you expect after initially filing a claim?

Does my homeowner's policy cover hurricane damage?

What type of things are not covered by the typical homeowner's policy during a hurricane?

How do you determine what damages my home from the hurricane: flood vs. wind?

What is my hurricane deductible?

How is the hurricane deductible calculated?

Am I covered for tree debris removal?

What else do I need to know about removing downed trees from my property?

Who is going to help me with my claim?

Who clears my property?

Who pays for my living expenses?

How do I replace everything I have lost?

How do I complete a personal contents inventory of my damaged property?

How long does coverage last for a typical insurance policy?

Does State Farm have the resources to pay all of these claims?

Will rates go up for my homeowners insurance?

What if I experience multiple storms in one season?

What are my first steps if I have damage?

• When it is safe to do so, make (or have a contractor make) temporary repairs to prevent further damage to your home or property.
• Save receipts if you purchase items such as tarps, plywood or other supplies to make repairs.
• Take photos/videos of damage for claim documentation.
• To get the claims process started, you can file your claim online, call 1-800-SFCLAIM (800-732-5246) or contact your State Farm agent.

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What can you expect after initially filing a claim?

• After a claim has been filed, a State Farm claims specialist will contact you to discuss the extent of damage and review your policy coverages.
• The complexity and collaboration needed to investigate a claim can sometimes take time, and is necessary for a proper evaluation of your claim.
• If at any time during the claims process, you have questions, do not hesitate to ask your claims specialist. We know this can be a difficult and confusing time. We are here to help you 24 hours a day, seven days a week.

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Does my homeowner’s policy cover hurricane damage?

• Unless the damage is excluded in the policy, a typical homeowners policy provides coverage for accidental direct physical loss to your dwelling and may also provide coverage for personal property damage from a hurricane. Flood damage is not covered.

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What type of things are not covered by the typical homeowners policy during a hurricane?

• Flooding is not covered under homeowners policies. It is a separate coverage that can be purchased through the federal government’s National Flood Insurance Program. State Farm agents enrolled in the NFIP Direct Program are able to write and service flood insurance coverage directly through the federal government program. Homeowners who have flood coverage and have experienced flood damage should report their claim to their flood insurance carrier so that damages can be assessed. To contact NFIP: 1-888-379-9531. 
• Backup Sewer and Drain: If you have water damage, contact your agent for guidance. Damage from water that enters a home through a sewer, drain, or sump pump is excluded from a homeowners’ policy but coverage may be added to your policy for an additional premium. Homeowners should contact their agent for more information.

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How do you determine what damages my home from the hurricane: flood vs wind?

• Policyholders are always encouraged to file a claim should they think they have damage from the hurricane. Coverage and any possible exclusions are then determined during the claims process.

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 What is my hurricane Deductible?

• The insurance industry uses hurricane deductibles to account for increased exposure in areas prone to major storm events such as hurricanes.
• State Farm applies hurricane deductibles when a named storm has been declared by the National Weather Service (NWS).
• We encourage State Farm policyholders to review their insurance policy language for the specific provisions related to hurricane deductibles and contact their State Farm agent if they have questions.
• When does the hurricane deductible apply? Each state differs on when the hurricane deductible will apply. Generally, it will apply when a named storm has been declared by the National Weather Service (NWS). Other conditions apply and are outlined in the policy.

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How is the hurricane deductible calculated?

• Hurricane deductibles vary. If a policy includes one, State Farm policyholders can find it in their policy documents, or they can contact their State Farm agent.

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Am I covered for tree debris removal?

• If a windstorm causes a tree to fall but it does not damage your covered real property (such as your house, fence, carport or garage), the homeowners policy does not cover tree debris removal.
• If a windstorm causes a tree to fall and it damages your covered real property, then coverage is provided to remove the tree from the house, fence, carport or garage to perform repairs to that property. State Farm will also provide up to $1,000 to remove the tree debris from the residence premises. 

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What else do I need to know about removing downed trees from my property?

• When hiring a tree removal company you should make sure they are licensed and bonded.
• Also make sure tarping (if appropriate) is included in their work (or another contractor) so that once the tree is removed from the structure, additional damage does not occur through an open/exposed roof. Water mitigation/removal is the next step to reduce the damage caused by water that may have entered your house through the exposed areas.
• Before signing any contracts, talk with your State Farm claim specialist for guidance following a loss.

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Who is going to help me with my claim?

• The State Farm team is here to help. Our claims operation includes a dedicated, mobile workforce, specially trained to handle catastrophe claims. These teams are prepared to go anywhere in the country within hours of being notified. They provide claim service, 24 hours a day and 365 days a year.

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Who clears my property?

• State Farm homeowners insurance may provide coverage, subject to policy terms and limits, to remove debris from the residence premises. The responsibility to hire someone to clear your land rests with you. We recommend you contact your claim specialist, as they will be able to determine if coverage applies and how much State Farm will pay. Make sure any removal company is licensed and bonded.

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Who pays for my living expenses?

• If covered damage is so extensive that your residence is uninhabitable, then Additional Living Expenses (ALE) may be available. Generally, ALE reimburses you for increased living expenses you incur as a result of your home being uninhabitable and is subject to the deductible and the terms and conditions of the policy. ALE is available to you while your home is uninhabitable and being repaired, replaced or up to 24 months, whichever is shorter, and as otherwise indicated in your specific policy.

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How do I replace everything I have lost?

• For personal contents (the Coverage B portion of your policy), typically, you are initially paid actual cash value (replacement cost minus depreciation). Then, when you actually replace the damaged personal contents, you will receive the difference as a replacement cost benefit. This assumes the replacements occur within the designated time frame of the contract.

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How do I complete a personal contents inventory of my damaged property?

• Your claim specialist is available to assist customers with completing the inventory. Customers who do not need a face-to-face meeting can provide their inventory to their claim handler for processing or submit them electronically directly to their claim file 24/7.
• Customers do not have to wait until their entire inventory is completed to submit to their claim. We encourage submitting inventories by rooms to make it easier for our customers to compile.
• State Farm recommends grouping items of similar quality/price/age: For Example: clothing-jeans-20 pair/shirts-30/etc, cleaning supplies, over-the-counter medication/kitchen utensils as this can help expedite the process. Unusual, specialty or high cost items should be listed individually.
• Again, if you need any assistance with the contents inventory process, all you have to do is ask your claim specialist for help.

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How long does coverage last for a typical insurance policy?  

• An insurance policy is a contract. You pay for coverage for a specified amount of time defined as the policy period (for example six months or a year). The contract protects you for that specified amount of time and for losses you incur under that contract.

• Coverage is not cumulative year to year, meaning your premiums do not add up like a savings account to be used when there is a claim.

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Does State Farm have the resources to pay all of these claims?

• Disasters like these are a reminder that our business is highly volatile. Despite that volatility, our long history of financial strength is what allows us to keep the commitments we have made to our customers, helping to remove some of the uncertainty from their lives during times of loss.

• We have faced countless significant weather and other major disasters over our 95-year history, and we stand ready for more as we help people manage the risks of everyday life, recover from the unexpected, and realize their dreams.

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Will rates go up for my homeowners insurance?

• Rates are determined based on our anticipated need to pay future claims, not to make up for past losses. It is important to note many factors are considered when underwriting and pricing a homeowners insurance policy because each customer’s circumstances are unique.
• We encourage all of our customers to have a conversation with their agent to make sure they are comfortable with the appropriate coverage for their unique situations, including reviewing discounts available to them that could decrease their premiums.

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What if I experience multiple storms in one season?

• Each policy is different and the circumstances around each claim are unique. We encourage customers to speak to their agent about their specific situation and how their deductible would apply.

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More than 35,300 insurance claims were filed with State Farm in the week following the Laura’s landfall. Residents across Louisiana and Texas continue reporting damage to their homes and vehicles as impacted areas become more accessible. State Farm catastrophe response drone teams are assessing damage for customers across Lake Charles and other impacted areas.

Please continue to monitor local information. When it is safe to do so, make (or have a contractor make) temporary repairs to prevent further damage to your home or property. Save receipts if you purchase items such as tarps, plywood or other repair supplies. Take photos/videos of damage for claim documentation.

To get the claims process started, you can file your claim online, call 1-800-SFCLAIM (800-732-5246) or contact your State Farm agent.

We're continuing to gear up claims resources in response to #HurricaneLaura. We're balancing health and safety with our commitment to customers, we’re working virtually and in person, practicing social distancing with protective equipment.

The State Farm Weather and Catastrophe Team is being dispatched to the hardest hit areas.

Face-to-Face protocols, adjustments and staffing during COVID-19

• First and foremost, we are committed to the health and safety of our customers, the communities where we live and work, and our claim employees.
• Our claim operations remain open and available to service your claims. We are monitoring this changing health issue and continually evaluating our response.
• Virtual claim inspection options are available in most states if legally permitted.
• Claims can always be submitted and managed by calling or emailing your State Farm agent, calling 1-800-SFCLAIM, submitting a claim through our mobile app or through our website at statefarm.com/claims.
• Continuous innovation and adaptation have positioned State Farm as the insurance industry leader. The pandemic is a rapidly changing situation and the decisions we are making balance health concerns with our obligation to continue to serve you.

More tips and resources:

• Avoid driving if possible. If you have to travel, turn around if the road is flooded or blocked by debris.
• Stay away from downed power lines. Anything touching the power line can carry a charge. Report the downed line and avoid the area.
• Simple Insights: Hurricane disaster cleanup after the storm

In the News:

• KADN-15: State Farm Using Drones to Assess Damage (9/4/20)
• The Times-Picayune: State Farm insurance claims hit 24,800 for Louisiana homeowners after Hurricane Laura (9/1/20)
• CBS-42: Like good neighbors, Alabamians are there (8/27/20)
• WVTM-13: Hurricane Laura relief staging in Birmingham area (8/27/20)
• The Weather Channel: CAT 2 Laura Moving Inland (8/27/20)
• Houston Chronicle: Season's first hurricane gives Texans a taste of how COVID has shaped insurance claims (8/4/20)
• AccuWeather: Now is the time to prepare for hurricane season (6/1/20)

When will customers receive their dividend credit?

Does an insured have to be with State Farm on March 20 to receive the credit?

What type of policies will receive the credit?

Do customers need to do anything to receive their dividend credit?

How much dividend credit will customers get?

How is each customer’s dividend amount determined?

Can customers get a check instead of a credit?

What is the total dividend amount and how was it determined?

Who can customers talk with about payment options for accounts?

Besides the dividend credit, what are other ways I can save on my auto insurance bill?

Does the return of this dividend increase the likelihood State Farm Mutual rates will be increased in the near future?

Besides the dividend credit, what are other ways customers can save on their auto insurance bill?

Do customers have to renew their policy in order to obtain the credit?

Who will receive a dividend?

• Every Mutual Auto policyholder with an auto insurance policy in-force between March 20 and May 31, 2020, will receive a dividend. Customers with a Personal Lines Auto, Motorcycle, RV, Business Use Personal Auto, Commercial Auto, School Bus and/or Antique/Classic policy will receive the dividend as a premium credit to their policy.

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When will customers receive their dividend credit?

• We anticipate State Farm Payment Plan (SFPP) customers will receive the credit beginning as early as June but most will see the credit applied to their July bill. Customers not enrolled in the State Farm Payment Plan (SFPP) should see the credit applied at their next renewal. We are crediting customers’ bills at the earliest opportunity after the credit period of March 20 – May 31. Depending on the date of a customer’s renewal, the next bill for some customers may not be until late 2020 or early 2021. By providing this in the form of a credit, we’re able to reduce the amount a customer will need to pay on their next bill in the most efficient and cost-effective way which benefits all customers.

• For customers with specific questions, we encourage you to reach out to your agent. They’re working with customers one-on-one to explain your bill and provide payment options.

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Does an insured have to be with State Farm on March 20 to receive the credit? 

• No, as long as they are a State Farm Mutual policyholder at some point in time between March 20 and May 31, they will receive the credit.
• New customers to State Farm will receive this credit for the period of time they are insured with us during this date range.

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What type of policies will receive the credit?

• Customers with a Personal Lines Auto, Motorcycle, RV, Business Use Personal Auto, Commercial Auto, School Bus and/or Antique/Classic policy will receive the dividend.

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Do customers need to do anything to receive their dividend credit?

• No. Credits will be applied automatically.
• State Farm is not contacting customers requesting financial account or credit card information in order to receive a dividend or a credit. If you receive this type of call, do not provide any personal information. This type of phone scam and other scams are on the rise. Learn how to report suspicious calls and tips for helping protect your information.

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How much dividend credit will customers get?

• Customers can expect to receive a dividend on average of 25 percent of premiums owed during the period March 20 and May 31. This amount will vary from one customer to the next. This works out to about $20 per month for each vehicle insured.

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How is each customer’s dividend amount determined?

• The amount received by each policyholder is a percentage of that policyholder’s premium owed for the period between March 20 and May 31.

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Can customers get a check instead of a credit?

• No. The intent is to provide the dividend in the most cost-efficient manner - applied as a premium credit to outstanding or upcoming bills.

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What is the total dividend amount and how was it determined?

• Up to $2 billion is appropriate based on the claim and driving behaviors during the COVID-19 period. It positions the Company to maintain its financial strength while continuing to serve customers and deliver on the promises we make to be there when the unexpected happens.
• The amount was determined by indications of lower loss costs due to less driving in this time. State Farm Mutual, as a mutual company focused solely on serving customers, was able to provide this dividend.

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Who can customers talk with about payment options for accounts?

• Customers can talk with their State Farm agent. State Farm agents are working with customers one-on-one to provide payment options. Customers do not need to take any action to receive the dividend.

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Does State Farm have the resources to offer this dividend credit?

• We have the financial strength necessary to help millions of customers recover from the unexpected. We made this decision to provide customers short-term solutions while maintaining our ability to remain financially strong for our customers to keep our promises now and in the future.

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Does the return of this dividend increase the likelihood that the State Farm Mutual rates will be increased in the near future?

• No. Future rates are based on expected future costs. The dividend will have no impact on future rates.

Besides the dividend credit, what are other ways customers can save on their auto insurance bill?

• Customers can talk with their State Farm agent about other ways to save. For example, our Drive Safe & Save® program puts customers in control of their discount. How customers drive determines how much they save – up to 30% or more, and they’ll save just by signing up.

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Do customers have to renew their policy in order to obtain the credit?

• No. Any customer with an in-force policy between March 20 and May 31 will receive a premium credit.

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Prentiss Bullard of Atlanta, Georgia, grew up knowing three things:

• Treat people with respect.
• When life gets you down, laugh.
• A college degree is a must.

"I learned it all from my dad," smiled Prentiss. "He's a people person, and that rubbed off on me. His dream, for me to pursue higher education, has too." Instead of going to college, Prentiss’s dad joined the workforce, serving as the primary breadwinner for Prentiss and his mother.

"Dad taught me the value of hardwork, and always reminded me to stay in school," said Prentiss. "He wanted me to go farther than he did."

The years passed. The Bullard family kept busy. Life was happy. Then, in 2016, everything turned upside down. “I was walking to school when I got an urgent call from my mom,” said Prentiss. "I’ll never forget her words: “Your dad’s been hit by a car.”

"We rushed to the hospital. Dad's injuries were so severe. He passed away a short time later." Prentiss Bullard senior was just 49 years old.

With grieving hearts, Prentiss and his mother were left to figure out how to move forward. But without an adequate life insurance plan, questions about how to pay for bills, make rent, or even plan for college remained unanswered. “We hardly had time to process everything,” said Prentiss. “It was so stressful. On top of it all, I was worried I might not be able to go to school.”

Prentiss got a job and started applying for scholarships, including the Life Lessons Scholarship from the nonprofit, Life Happens. With the support of State Farm, Life Happens helps educate families with insurance and financial planning. “I did everything I could to take the load off my mom, while also making sure my dad’s wish – that I go to college – came true.” In 2018 Prentiss got a phone call that left him beaming from ear to ear...

“I learned I was the grand prize winner of the Life Lessons scholarship. I was thrilled! The happiness I felt that day, I still feel now. My life is changed.”

Today, Prentiss is a student at George Washington University, pursuing a degree in fine arts. “Whenever I’m taking a test, doing homework, or studying for exams – I think of dad. I think of how much he and my mom love me. I want to make them proud, so I work hard. I’m aspiring to be a photojournalist. The opportunity to go to college is truly a gift.”

Prentiss continues to live out the lessons his father taught him. He says they’re lessons everyone should remember. And, there’s one more piece of advice he wants to share:

“Protect the ones you love, make sure they’re provided for with a life insurance plan. Everyone should make this a priority,” said Prentiss. “Life has a lot of twists and turns. Accidents happen. Knowing you’re covered means peace of mind - so you can keep enjoying your journey.”

Who is going to help me with my claim?

Does State Farm homeowners insurance provide coverage for debris removal?

Who pays for my living expenses?

How do I replace everything I have lost?

How do I complete a personal contents inventory?

Do I get an advance on my personal contents so I can begin replacing items?

What do I need to do to get 100 percent of contents coverage?

Do I have enough insurance to cover the value of my home?

How can I figure out the replacement cost of my home?

How long does coverage last for a typical insurance policy?

Does State Farm have the resources to pay all of these claims?

Will my insurance policy be non-renewed?

Will rates go up for my homeowners insurance?

I have heard the term "subrogation". What does it mean and how does it affect me as a State Farm customer?

Can State Farm extend my Additional Living Expense coverage benefit beyond the 24 months contractual limit?

The media has reported on the affordability and availability of homeowners insurance in California. Can I find homeowners insurance in California and is it affordable?

What are my first steps?

• After a claim has been filed, a State Farm claims handler will contact you to discuss the extent of damage and review what is covered under your policy.
• The complexity and collaboration that is needed to make sure we get you back on your feet can sometimes take time and is necessary to make sure we do right by you, our customer.
• If at any time during the claims process, you have questions, do not hesitate to ask your claims handler. We know this can be a difficult and confusing time. We are here to help you 24 hours a day, 7 days a week.

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Who is going to help me with my claim?

• It will take time but State Farm is here to support you from the beginning until the very end.
• The claims process can be complex and it is often necessary to involve multiple claim handlers. This approach to enhanced customer service allows State Farm to provide quality and efficient claim service, 24 hours a day and 365 days a year. Our customers should have confidence that State Farm will bring the necessary people resources to handle our customers’ claims.
• State Farm has catastrophe claim teams in the area helping all of our customers recover from this unexpected tragedy. Our claims operation includes a dedicated, mobile workforce, specially trained to handle catastrophe claims and prepared to go anywhere in the country within hours of being notified. Prior to handling California claims, they were thoroughly trained on the specific requirements of California law.

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Does State Farm homeowners insurance provide coverage for debris removal?

• State Farm homeowners insurance may provide coverage, subject to policy terms and limits, to remove debris from the residence premises. We recommend you contact your claim handler, as they will be able to determine if coverage applies and how much State Farm will pay.

• The choice of who to hire to remove debris from your property is yours. Make sure any removal company is licensed and bonded. Some cities, counties or governmental agencies may offer debris removal in exchange for an agreement that you pay all the money your insurance company pays you for this service.

• State Farm does NOT negotiate debris removal expenses with the county, vendor, or any other entity. It is understood that the county, vendor or other entity is hired by you, our insured, and that they work for you – not State Farm.

• If you receive invoices, estimates or other documentation for debris removal, contact your claim handler.

• Your claim handler is available to assist you with any questions you may have and help facilitate the process with you and the other party.

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Who pays for my living expenses?

• If damage is so extensive that your residence is uninhabitable, then Additional Living Expenses (ALE) may be available. Generally, ALE reimburses you for increased living expenses you incur as a result of your home being uninhabitable and is subject to deductible and the terms and conditions of the policy. ALE is available to you while your home is being repaired, replaced or up to 24 months*, whichever is shorter.
  • With a recent change in California law, losses arising from a declared disaster occurring after September 21^st 2018, Additional Living Expense (ALE) is available for no less than 24 months and may be extended to 36 months for good cause. Additional 6 months extensions may also be granted for good cause. For the 2017 wildfires that occurred in California (e.g. North Bay Tubbs Fire) State Farm's contract provides ALE coverage for up to 24 months.

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How do I replace everything I have lost?

• California law (Insurance Code Section 2071) requires homeowner’s insurers to document customer’s losses and specifically requires an itemized listing of damaged and destroyed property and the value of those items. State Farm’s contract complies with this provision and seeks a listing of all damaged and destroyed property so that an insured is paid for items that were actually lost.

• The requirement to complete an inventory of personal contents has been a part of the California insurance code for quite some time. It ensures that each amount paid to a customer after a loss complies with the terms and conditions of their policy contract.

• For personal contents (the Coverage B portion of your policy), typically, you are paid actual cash value upfront. Then, when you actually replace the damaged personal contents, you will receive the difference as a replacement cost benefit. This assumes the replacements occur within the designated time frame of the contract (up to 24 months)**.

  • ** With a recent change in California law, losses arising from a declared disaster homeowners have up to three years, from the first substantial personal property payment, to replace items per Department of Insurance requirements. This law was effective 09/21/2018. For the 2017 wildfires that occurred in California (e.g. North Bay Tubbs Fire) State Farm's contract allows for items to be replaced up to 2 years from the date of loss

• State Farm regularly reminds customers about the importance of completing a personal contents inventory before disaster strikes. The reason why we emphasize this is we want to pay what we owe and an inventory is a tool for customers to make sure they get the full benefits allowed to them within their policy contract.

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How do I complete a personal contents inventory?

• Claim resources are available to provide a personalized experience with the customers by offering a face-to-face meeting with the customers to assist them with completing their inventory. Customers who do not need a face-to-face meeting can provide their inventory to their claim handler for processing or submit them electronically directly to their claim file 24/7.
• Customers do not have to wait until their entire inventory is completed to submit to their claim. We encourage submitting inventories by rooms to make it easier for our customers to compile.
• Contrary to the myth that State Farm requires accounting for every single spoon and pencil, State Farm recommends grouping items of similar quality/price/age: For Example: clothing-jeans-20 pair/shirts-30/etc, cleaning supplies, food, over the counter medication/kitchen utensils as this can help expedite the process.
• Again, if you need any assistance with the contents inventory process, all you have to do is ask your claim representative for in-person support. We will be there for you for this and all other aspects of your claim.

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Do I get an advance on my personal contents so I can begin replacing items?

• State Farm provides advances to address the immediate needs of our customers.
• The advances are designed to provide you flexibility to begin the recovery process.
• Generally, customers are initially offered the same percentage of an advance based on the circumstances of the event.
• In some cases, advance amounts are increased based on the individual needs/circumstances of the loss.
• We are committed to provide every benefit you are entitled to within the policy contract. This includes payment for items you have lost, up to the policy limits.
• We have Customer Care representatives that are committed to personalizing your claim experience and supporting you throughout the claim process.

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What do I need to do to get 100 percent of contents coverage?

• State Farm is available to support you in completing the contents inventory process.
• We are committed to provide every benefit you are entitled to within the policy contract. This includes payment for items you have lost, up to the policy limits.
• For personal contents (the Coverage B portion of your policy), typically, you are paid actual cash value upfront. Then, when you actually replace the damaged personal contents, you will receive the difference as a replacement cost benefit. This assumes the replacements occur within the designated time frame of the contract (up to 24 months)**.
  • ** With a recent change in California law, losses arising from a declared disaster homeowners have up to three years, from the first substantial personal property payment, to replace items per Department of Insurance requirements. This law was effective 09/21/2018. For the 2017 wildfires that occurred in California (e.g. North Bay Tubbs Fire) State Farm's contract allows for items to be replaced up to 2 years from the date of loss
• It’s critical to understand that insurance coverage is based on the principle of ‘indemnity’ – that is, the insurance contract only provides payment for items you have actually lost, up to the policy limits.
• We are prepared to provide in-person support to work through various aspects of your claim, in particular the contents inventory.

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Do I have enough insurance to cover the value of my home?

• The tragic wildfires are an important reminder to meet with an agent at least annually to review policies and coverage.
• It’s critical to understand that market value​ is different than the replacement cost to rebuild your home. Market value is the amount a buyer would pay for a home, including the land, regardless of how much it would cost to rebuild the home. Replacement cost for this purpose is the rebuilding cost necessary to replace your entire home.
• We recommend that you purchase an amount of coverage at least equal to the estimated replacement cost. But the choice is yours. Since it is impossible to predict today what the exact cost will be to replace your home in the future, it's important to have enough coverage to account for unforeseen circumstances.

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How can I figure out the replacement cost of my home?

• The amount of insurance coverage selected is up to the customer.
• Ask if a replacement cost estimate is available when you have the home appraised or consult with your local builders association or a reputable builder for an estimate.
• Building contractors or professional replacement cost appraisers are a good source for obtaining an estimated replacement cost of your home. Estimates from these sources should reflect your home's features. When you upgrade or improve your home, you may increase your home's estimated replacement cost.
• Be sure to inform your agent about any changes to your home that may impact your insurance coverage needs.
• Replacement cost estimates are influenced by supply of labor, demand for labor, and the cost of construction materials. Keeping up with the current market conditions in your area and changing your home insurance coverage amount accordingly, will help you maintain coverage at least equal to 100 percent of the estimated replacement cost coverage for your home.

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How long does coverage last for a typical insurance policy?  

• An insurance policy is a contract. You pay for coverage for a specified amount of time defined as the policy period (for example six months or a year). The contract protects you for that specified amount of time and for losses you incur under that contract.
• Coverage is not cumulative year to year, meaning your premiums do not add up like a savings account to be used when there is a claim.

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Does State Farm have the resources to pay all of these claims?

• Disasters like these are a reminder that our business is highly volatile. Despite that volatility, our long history of financial strength is what allows us to keep the commitments we have made to our customers, helping to remove some of the uncertainty from their lives during times of significant loss.
• We have faced countless significant weather and other major disasters over our 97-year history, and we stand ready for countless more as we help people manage the risks of everyday life, recover from the unexpected, and realize their dreams.

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Will my insurance policy be non-renewed?

• There are several laws in California that address significant losses to homes and homeowners insurance policies. For example, following a declared disaster, California law requires that home insurers renew the impacted homeowners’ insurance policy at least once***.
  • ***With a recent change in California law in 2019, insurers are generally required to renew the policy for at least the next two annual renewal periods, and no less than 24 months from the date of the loss. For the 2017 wildfires that occurred in California (e.g. North Bay Tubbs Fire) State Farm is required to offer one renewal for policyholders that suffered a full loss.
• Many factors are considered when underwriting a homeowner’s insurance policy because each customer’s circumstances are unique. We look at each customer’s situation on a case-by-case basis and try to make sure we treat similar cases fairly and in a consistent manner.
• Losses resulting from weather events or catastrophes are included when re-underwriting a policy for continued insurance coverage. Depending on numerous characteristics that are specific to each policy, State Farm may elect to simply renew the policy, send a caution letter regarding overall claim activity, recommend or require repairs/loss mitigation measures or non-renew the risk.
• Our customers are our top priority, and we want to be able to meet their needs. It is our intent and obligation to fairly and responsibly manage our business, provide the best possible service, and provide homeowners insurance for all of our customers over the long term.

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Will rates go up for my homeowners insurance?

• Rates are determined based on our anticipated need to pay future claims, not to make up for past losses. It is important to note that many factors are considered when underwriting and pricing a homeowners insurance policy because each customer’s circumstances are unique.
• We encourage all of our customers to have a conversation with their agent to make sure they are comfortable with the appropriate coverage for their unique situations, including reviewing discounts available to them that could decrease their premiums.

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I have heard the term "subrogation". What does it mean and how does it affect me as a State Farm customer?

• State Farm’s commitment to our customers is the same for all claims. That commitment is to pay what we owe promptly, courteously, and efficiently.

• After an insurer has paid its customer on a covered claim, it may seek recovery of such claim payments from a legally responsible third party. This process is called subrogation.

• Subrogation is a common insurance industry operations practice and is pursued in a wide range of losses from auto accidents to large scale disasters. This process helps State Farm recover the costs associated with claim payments made to affected customers and may also result in the reimbursement of the customer’s deductible.

• Subrogation helps State Farm control claim costs and keeps rates low for our customers.

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Can State Farm extend my Additional Living Expense coverage benefit beyond the 24 months contractual limit?

• State Farm understands that there are customers facing unique circumstances and situations that are not within their full control. If you have questions about your claim and policy coverage, we would encourage you to reach out to your claim representative. We will work closely with you to address your concerns and see if there is anything more we can do to support you in the recovery process.
  • With a recent change in California law, losses arising from a declared disaster occurring after September 21^st 2018, Additional Living Expense (ALE) is available for no less than 24 months and may be extended to 36 months for good cause. Additional 6 months extensions may also be granted for good cause. For the 2017 wildfires that occurred in California (e.g. North Bay Tubbs Fire) State Farm's contract provides ALE coverage for up to 24 months.

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The media has reported on the affordability and availability of homeowners insurance in California. Can I find homeowners insurance in California and is it affordable?

• It is important to keep in mind that homeowners insurance covers many more causes of loss other than wildfires. (Examples: Weather - storms, fire, and wind. Non-weather – water loss, theft and vandalism.)

• In general, many factors are considered when underwriting a new homeowners insurance policy. State Farm considers factors such as the location of the property relative to natural hazards, condition of the property, and the customer's past claim activity and history.

• To keep our promises to all of our homeowner customers, we must find the appropriate balance between our exposure to loss, the resources available to maintain a quality level of service, and our ability to meet our financial obligations to pay claims for all of our California customers.

• For some helpful resources and more information on insurance availability and affordability, this website may be helpful to you.

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Subrogation is typically the last phase of an insurance claims process, when one insurance company recovers claim costs it paid to its customer for damages from the at-fault party’s insurance company, which includes its customer’s deductible.

“Today, subrogation is a relatively manual, time-consuming process often requiring physical checks to be mailed on a claim-by-claim basis between insurers,” says Mike Fields, Innovation Executive, State Farm. “In 2018 alone, the total amount of dollars demanded and issued through the subrogation process was over $9.6 Billion for all insurance carriers. You can imagine the time and resources required to complete these transactions.”

Companies across many industries are using blockchain technology to securely store data and manage transactions. USAA and State Farm are testing how blockchain can be used to gain efficiencies in the subrogation process by securely and automatically compiling all subrogation payment amounts, netting the balance, and facilitating a single payment on a regular basis between insurers.

“The blockchain solution we are working on has many potential benefits,” says Ramon Lopez, Vice President, Innovation, USAA. “It helps us automate a manual process securely and creates a permanent transaction record of each payment which can easily be verified for accuracy. It also has the potential to decrease the amount of time for consumers to receive their deductible reimbursement.”

The blockchain subrogation solution is the first of its kind between two major leaders in the insurance industry. The companies began working together in early 2018 and plan to continue testing to determine if the blockchain solution can be a viable product for industry adoption.

What is Blockchain?

Blockchain is a distributed ledger technology that can be used to manage transactions and store information using cryptography (i.e., mathematical algorithms and secret keys that encrypt data), peer-to-peer networking and data storage. This type of digital technology can create value for customers in ways that they wouldn’t expect from their insurance company. Subrogation is one example of where blockchain technology has the potential to reduce expenses while making processes more efficient and secure.

What is Subrogation?

Subrogation describes the right held by most insurance carriers to legally pursue a third party that caused a loss to an insured. Information about the claim is collected and the two insurance companies negotiate the claim amount. If an agreement is reached, the at-fault insurer submits payment to the other insurer on an individual claim basis. Insurance companies only share claim numbers and dollar amounts for subrogation purposes. No sensitive personal information is shared.

In the News:

• Forbes (7/18/19) State Farm And USAA See Stark Increase In Efficiency When Testing Blockchain Subrogation

• Digital Insurance (4/29/19) Inside State Farm's blockchain journey

• Forbes (4/16/19) Block Chain 50: Billion Dollar Babies

As State Farm launched their new drone program to better assist customers after storm damage, they needed to recruit and train employees to become drone pilots. And they wanted the best of the best.

To the surprise of no one, Jessica Hodge, Joy Hillsman-Caffie and Shelley Cole rose to the top of the list. They are three of the six drone pilots for State Farm who are women.

The news of her selection came as a shock to Jessica, an eight-year State Farm claims specialist.

When I found out, I was excited and up for the challenge,” shared Jessica. “I consider myself an early adopter of the technology. State Farm is one of the first insurance companies to use drones and I’m one of the first drone pilots for State Farm. It’s cool to be on the cutting edge.”

Shelley had worked in Claims for just shy of 30 years when she was tapped on the shoulder to join the elite team. She was enthusiastic about the new adventure.

“It’s been quite the experience. It makes me feel like I’m really leading the way for other women,” Shelley said. “It also gave me a bit of an upper hand. As a female catastrophe claims specialist (which is a male dominated role), working with contractors (which is a male dominated job), being a drone pilot gave me a different level of respect.”

Joy is one of the lucky people in the world whose hobby became a career. After she heard about the drone program, she decided she wanted in. Recently introduced to drones herself, the 13-year employee made a few phone calls and advocated for herself. She officially passed her license test in the fall of 2017.

“Having to fight for something you want makes it sweeter. It’s also very cool being one of the women drone pilots at State Farm,” shared Joy. “We are really at the forefront of the industry and it’s great to be a part of that.”

Even better, her son who loves all things tech, thinks she’s pretty cool, too. “He says I’m one of his super heroes.”

Together they are defying statistics and helping customers recover from the unexpected.

Thanks to the support of State Farm, SkillsUSA will focus on instructor training that helps grow its local chapters. Instructors will receive the latest information and tools in employability skills training, leadership development and teaching strategies.

State Farm is supporting:

• SkillsUSA’s Engage training for teachers at the SkillsUSA National Leadership and Skills Conference (NLSC) in June 2019
• Ongoing workshops on educational resources including the SkillsUSA Career Essentials suite, SkillsUSA’s flagship curriculum for middle school, high school, college/postsecondary and adult learners
• Materials and instruction at the 2019 Call to Action session, held exclusively for over 600 SkillsUSA instructors at the NLSC
• A teacher track during the Washington Leadership Training Institute in Washington, D.C., attended by SkillsUSA instructors from 28 states, in September 2019

In addition, SkillsUSA Championships supported by State Farm will include the 2019 Auto Refinishing, Collision Repair and Collision Damage Appraisal competitions, in which national competitors will test their skills against other students and the clock to industry standards for entry-level employees in these fields. State Farm support also includes a Prize Equity Fund for leadership events and a sector sponsorship for the transportation cluster at the national championships.

State Farm Insurance Companies, headquartered in Bloomington, Ill., has been a SkillsUSA supporter for 20 years with a total investment of over $2.8 million.

“SkillsUSA salutes State Farm for supporting our nation’s top career and technical education programs as we work to prepare career-ready students,” says SkillsUSA’s executive director, Timothy Lawrence. “SkillsUSA is a verified talent pipeline and skills gap solution that graduates 100,000 career-ready SkillsUSA students each year. Our organization lifts up and recognizes students and provides much-needed support for their teachers to ensure America has a future skilled workforce. We could not deliver our crucial mission without companies like State Farm working alongside us.”

“It is extremely important to have highly skilled technicians in body shops across the nation writing collision damage appraisals, repairing the vehicles and refinishing them,” says State Farm Senior Vice President, Property and Casualty Claims, Robert Yi. “The SkillsUSA Championships set industry standards for students and educators and help to ensure that students graduating into these professions possess the knowledge and skills to be successful in their craft.”

For more about the 2019 SkillsUSA Championships, visit: https://www.skillsusa.org/competitions/skillsusa-championships/.

For more information about SkillsUSA, contact:

• Jane A. DeShong Short, Program Manager, Public Relations/Communications, Phone: 703-737-0612
• Karen Kitzel, Program Manager, Public Relations/Communications, Phone: 703-737-0607

As State Farm launched their new drone program to better assist customers after storm damage, they needed to recruit and train employees to become drone pilots. And they wanted the best of the best.

To the surprise of no one, Jessica Hodge, Joy Hillsman-Caffie and Shelley Cole rose to the top of the list. They are three of the six drone pilots for State Farm who are women.

The news of her selection came as a shock to Jessica, an eight-year State Farm claims specialist.

When I found out, I was excited and up for the challenge,” shared Jessica. “I consider myself an early adopter of the technology. State Farm is one of the first insurance companies to use drones and I’m one of the first drone pilots for State Farm. It’s cool to be on the cutting edge.”

Shelley had worked in Claims for just shy of 30 years when she was tapped on the shoulder to join the elite team. She was enthusiastic about the new adventure.

“It’s been quite the experience. It makes me feel like I’m really leading the way for other women,” Shelley said. “It also gave me a bit of an upper hand. As a female catastrophe claims specialist (which is a male dominated role), working with contractors (which is a male dominated job), being a drone pilot gave me a different level of respect.”

Joy is one of the lucky people in the world whose hobby became a career. After she heard about the drone program, she decided she wanted in. Recently introduced to drones herself, the 13-year employee made a few phone calls and advocated for herself. She officially passed her license test in the fall of 2017.

“Having to fight for something you want makes it sweeter. It’s also very cool being one of the women drone pilots at State Farm,” shared Joy. “We are really at the forefront of the industry and it’s great to be a part of that.”

Even better, her son who loves all things tech, thinks she’s pretty cool, too. “He says I’m one of his super heroes.”

Together they are defying statistics and helping customers recover from the unexpected.

What are my first steps?

Who is going to help me with my claim?

Does  the State Farm earthquake endorsement provide coverage for debris removal?

Who pays for my living expenses?

How do I replace everything I have lost?

How do I complete a personal contents inventory?

Do I get an advance on my personal contents so I can begin replacing items?

What do I need to do to get 100 percent of contents coverage?

Do I have enough insurance to cover the value of my home?

How can I figure out the replacement cost of my home?

How long does coverage last for a typical insurance policy?

Does State Farm have the resources to pay all of these claims?

Will my insurance policy be non-renewed?

Will rates go up for my homeowners insurance?

I have heard the term "subrogation". What does it mean and how does it affect me as a State Farm customer?

Is damage from an earthquake covered under my State Farm homeowners policy?

• No, damage from an earthquake is not covered under a standard State Farm homeowner insurance policy in Alaska. However, State Farm will pay for any accidental direct physical loss by fire resulting from earth movement, provided the resulting fire loss is itself a loss insured.
• If the risk is eligible, insurance coverage for earthquake damage can be purchased as an endorsement to your State Farm homeowners insurance policy. Customers with questions about the earthquake endorsement can contact their local State Farm agent.

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What are my first steps?

• After a claim has been filed, a State Farm claims specialist will contact you to discuss the extent of damage and review what is covered under your policy.
• If at any time during the claims process, you have questions, do not hesitate to ask your claims specialist. We know this can be a difficult and confusing time. We are here to help you 24 hours a day, 7 days a week.

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Who is going to help me with my claim?

• State Farm is here to support you from the beginning until the very end.
• The claims process can be complex and it is often necessary to involve multiple claim specialists. This approach to enhanced customer service allows State Farm to provide quality and efficient claim service, 24 hours a day and 365 days a year. Our customers should have confidence that State Farm will bring the necessary people resources to handle our customers’ claims.
• State Farm has catastrophe claim teams in the area. Our claims operation includes a dedicated, mobile workforce, specially trained to handle catastrophe claims and prepared to go anywhere in the country within hours of being notified.

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Does the State Farm earthquake endorsement provide coverage for debris removal?

• A State Farm earthquake endorsement may provide coverage, subject to policy terms and limits, to remove debris from the residence premises. We recommend you contact your claim specialist, as they will be able to determine if coverage applies and how much State Farm will pay.
• The choice of who to hire to remove debris from your property is yours. Make sure any removal company is licensed and bonded. Some cities, counties or governmental agencies may offer debris removal in exchange for an agreement that you pay all the money your insurance company pays you for this service.
• State Farm does NOT negotiate debris removal expenses with the county, vendor, or any other entity. It is understood that the county, vendor or other entity is hired by you, our insured, and that they work for you – not State Farm.
• If you receive invoices, estimates or other documentation for debris removal, contact your claim specialist.
• Your claim specialist is available to assist you with any questions you may have and help facilitate the process with you and the other party.

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Who pays for my living expenses?

• If a covered loss occurs and damage is so extensive that your residence is uninhabitable, then Additional Living Expenses (ALE) may be available. Generally, ALE reimburses you for increased living expenses you incur as a result of your home being uninhabitable and is subject to the deductible and the terms and conditions of the policy. ALE is available to you while your home is being repaired or replaced, whichever is shorter.

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How do I replace everything I have lost?

• For personal contents (the Coverage B portion of your policy), typically, you are paid actual cash value upfront. Then, when you actually replace the damaged personal contents, you will receive the difference as a replacement cost benefit. This assumes the replacements occur within the designated time frame of the contract (up to two years).

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How do I complete a personal contents inventory?

• Claim resources are available to provide a personalized experience with customers by offering a face-to-face meeting with the customers to assist them with completing their inventory. Customers who do not need a face-to-face meeting can provide their inventory to their claim handler for processing or submit them electronically directly to their claim file 24/7.
• Customers do not have to wait until their entire inventory is completed to submit to their claim. We encourage submitting inventories by rooms to make it easier for our customers to compile.
• Again, if you need any assistance with the contents inventory process, all you have to do is ask your claim representative for in-person support. We will be there for you for this and all other aspects of your claim.

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Do I get an advance on my personal contents so I can begin replacing items?

• State Farm provides advances to address the immediate needs of our customers.
• The advances are designed to provide you flexibility to begin the recovery process.
• We are committed to provide every benefit you are entitled to within the policy contract. This includes payment for items you have lost, subject to the terms and conditions of the policy, up to the policy limits.
• We have claim representatives that are committed to personalizing your claim experience and supporting you throughout the claim process.

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Do I have enough insurance to cover the value of my home?

• This tragic earthquake is an important reminder to meet with an agent at least annually to review policies and coverage.
• It’s critical to understand that market value ​is different than the replacement cost to rebuild your home. Market value is the amount a buyer would pay for a home, including the land, regardless of how much it would cost to rebuild the home. Replacement cost for this purpose is the rebuilding cost necessary to replace your entire home.
• We recommend that you purchase an amount of coverage at least equal to the estimated replacement cost. But the choice is yours. Since it is impossible to predict today what the exact cost will be to replace your home in the future, it's important to have enough coverage to account for unforeseen circumstances.

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How can I figure out the replacement cost of my home?

• The amount of insurance coverage selected is up to the customer.
• Building contractors or professional replacement cost appraisers are a good source for obtaining an estimated replacement cost of your home. Estimates from these sources should reflect your home's features. When you upgrade or improve your home, you may increase your home's estimated replacement cost.
• Ask if a replacement cost estimate is available when you have the home appraised or consult with your local builders association or a reputable builder for an estimate. If you are unable to obtain a detailed estimate from these sources, a third-party estimating tool is made available to your State Farm agent to assist you with estimating the replacement cost of your home.
• Be sure to inform your agent about any changes to your home that may impact your insurance coverage needs.
• Replacement cost estimates are influenced by supply of labor, demand for labor, and the cost of construction materials. Keeping up with the current market conditions in your area and changing your home insurance coverage amount accordingly, will help you maintain coverage at least equal to 100 percent of the estimated replacement cost coverage for your home.

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How long does coverage last for a typical insurance policy?  

• An insurance policy is a contract. You pay for coverage for a specified amount of time defined as the policy period (for example six months or a year). The contract protects you for that specified amount of time and for losses you incur under that contract.
• Coverage is not cumulative year to year, meaning your premiums do not add up like a savings account to be used when there is a claim.

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Does State Farm have the resources to pay all of these claims?

• Disasters like these are a reminder that our business is highly volatile. Despite that volatility, our long history of financial strength is what allows us to keep the commitments we have made to our customers, helping to remove some of the uncertainty from their lives during times of significant loss.
• We have faced countless significant weather and other major disasters over our 96-year history, and we stand ready for countless more as we help people manage the risks of everyday life, recover from the unexpected, and realize their dreams.

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Will my insurance policy be non-renewed?

• Many factors are considered when underwriting a homeowner’s insurance policy because each customer’s circumstances are unique. We look at each customer’s situation on a case-by-case basis to make sure we treat similar cases fairly and in a consistent manner.
• Losses resulting from weather events or catastrophes may be included when re-underwriting a policy for continued insurance coverage. Depending on numerous characteristics that are specific to each policy, State Farm may elect to simply renew the policy, send a caution letter regarding overall claim activity, recommend or require repairs/loss mitigation measures or non-renew the risk.
• Our customers are our top priority, and we want to be able to meet their needs. It is our intent and obligation to fairly and responsibly manage our business, provide the best possible service, and provide homeowners insurance for all of our customers over the long term.

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Will rates go up for my homeowners insurance?

• Rates are determined based on our anticipated need to pay future claims, not to make up for past losses. It is important to note that many factors are considered when underwriting and pricing a homeowners insurance policy because each customer’s circumstances are unique.
• We encourage all of our customers to have a conversation with their agent to make sure they are comfortable with the appropriate coverage for their unique situations, including reviewing discounts available to them that could decrease their premiums.

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“Today, subrogation is a relatively manual, time-consuming process often requiring physical checks to be mailed on a claim-by-claim basis between insurers,” says Mike Fields, innovation executive, State Farm. “You can imagine the time and resources required to complete these transactions.”

Companies across many industries are using blockchain technology to securely store data and manage transactions. State Farm is working with another insurer to understand how an enterprise blockchain solution can be used to reduce the time needed to complete the subrogation process by securely and automatically compiling all subrogation payment amounts, netting the balance and facilitating a single payment on a regular basis between insurers.

Benefits

“The blockchain solution we are working on has many potential benefits,” says Fields. “It helps us automate a manual process securely and creates a permanent transaction record of each payment which can easily be verified for accuracy. It also has the potential to decrease the amount of time for consumers to receive their deductible reimbursement.”

Subrogation is typically the last part of an insurance claims process where one insurance company recovers claim costs it paid to its customer for damages from the at-fault party.

What is Blockchain

Blockchain technology can be used to manage transactions and store information using cryptography (i.e., mathematical algorithms and secret keys that encrypt data), peer-to-peer networking and data storage. Subrogation is one example of where blockchain technology has the potential to reduce expenses while making processes more efficient and secure.

What is Subrogation?

Subrogation is a term describing a legal right held by most insurance carriers to legally pursue a third party that caused an insurance loss to the insured. In auto claims subrogation for example, information about the claim is collected and the two insurance companies negotiate the claim amount. If an agreement is reached, the at-fault insurer submits payment to the other insurer on an individual claim basis. No sensitive personal information is shared between the two companies.

What are my first steps if I have damage?

What can you expect after initially filing a claim?

Does my homeowner's policy cover hurricane damage?

What type of things are not covered by the typical homeowner's policy during a hurricane?

How do you determine what damages my home from the hurricane: flood vs. wind?

What is my hurricane deductible?

How is the hurricane deductible calculated?

Am I covered for tree debris removal?

What else do I need to know about removing downed trees from my property?

Who is going to help me with my claim?

Who clears my property?

Who pays for my living expenses?

How do I replace everything I have lost?

How do I complete a personal contents inventory of my damaged property?

How long does coverage last for a typical insurance policy?

Does State Farm have the resources to pay all of these claims?

Will rates go up for my homeowners insurance?

What are my first steps if I have damage?

• When it is safe to do so, make (or have a contractor make) temporary repairs to prevent further damage to your home or property.
• Save receipts if you purchase items such as tarps, plywood or other supplies to make repairs.
• Take photos/videos of damage for claim documentation.
• To get the claims process started, you can file your claim online, call 1-800-SFCLAIM (800-732-5246) or contact your State Farm agent.

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What can you expect after initially filing a claim?

• After a claim has been filed, a State Farm claims specialist will contact you to discuss the extent of damage and review your policy coverages.
• The complexity and collaboration needed to investigate a claim can sometimes take time, and is necessary for a proper evaluation of your claim.
• If at any time during the claims process, you have questions, do not hesitate to ask your claims specialist. We know this can be a difficult and confusing time. We are here to help you 24 hours a day, seven days a week.

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Does my homeowner’s policy cover hurricane damage?

• Unless the damage is excluded in the policy, a typical homeowners policy provides coverage for accidental direct physical loss to your dwelling and may also provide coverage for personal property damage from a hurricane. Flood damage is not covered.

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What type of things are not covered by the typical homeowners policy during a hurricane?

• Flooding is not covered under homeowners policies. It is a separate coverage that can be purchased through the federal government’s National Flood Insurance Program. State Farm agents enrolled in the NFIP Direct Program are able to write and service flood insurance coverage directly through the federal government program. Homeowners who have flood coverage and have experienced flood damage should report their claim to their flood insurance carrier so that damages can be assessed. To contact NFIP: 1-888-379-9531. 
• Backup Sewer and Drain: If you have water damage, contact your agent for guidance. Damage from water that enters a home through a sewer, drain, or sump pump is excluded from a homeowners’ policy but coverage may be added to your policy for an additional premium. Homeowners should contact their agent for more information.

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How do you determine what damages my home from the hurricane: flood vs wind?

• Policyholders are always encouraged to file a claim should they think they have damage from the hurricane. Coverage and any possible exclusions are then determined during the claims process.

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 What is my hurricane Deductible?

• The insurance industry uses hurricane deductibles to account for increased exposure in areas prone to major storm events such as hurricanes.
• State Farm applies hurricane deductibles when a named storm has been declared by the National Weather Service (NWS).
• We encourage State Farm policyholders to review their insurance policy language for the specific provisions related to hurricane deductibles and contact their State Farm agent if they have questions.
• When does the hurricane deductible apply? Each state differs on when the hurricane deductible will apply. Generally, it will apply when a named storm has been declared by the National Weather Service (NWS). Other conditions apply and are outlined in the policy.

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How is the hurricane deductible calculated?

• Hurricane deductibles vary. If a policy includes one, State Farm policyholders can find it in their policy documents, or they can contact their State Farm agent.

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Am I covered for tree debris removal?

• If a windstorm causes a tree to fall but it does not damage your covered real property (such as your house, fence, carport or garage), the homeowners policy does not cover tree debris removal.
• If a windstorm causes a tree to fall and it damages your covered real property, then coverage is provided to remove the tree from the house, fence, carport or garage to perform repairs to that property. State Farm will also provide up to $500.00 to remove the tree debris from the residence premises. 

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What else do I need to know about removing downed trees from my property?

• When hiring a tree removal company you should make sure they are licensed and bonded.
• Also make sure tarping (if appropriate) is included in their work (or another contractor) so that once the tree is removed from the structure, additional damage does not occur through an open/exposed roof. Water mitigation/removal is the next step to reduce the damage caused by water that may have entered your house through the exposed areas.
• Before signing any contracts, talk with your State Farm claim specialist for guidance following a loss.

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Who is going to help me with my claim?

• The State Farm team is here to help. Our claims operation includes a dedicated, mobile workforce, specially trained to handle catastrophe claims. These teams are prepared to go anywhere in the country within hours of being notified. They provide claim service, 24 hours a day and 365 days a year.

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Who clears my property?

• State Farm homeowners insurance may provide coverage, subject to policy terms and limits, to remove debris from the residence premises. The responsibility to hire someone to clear your land rests with you. We recommend you contact your claim specialist, as they will be able to determine if coverage applies and how much State Farm will pay. Make sure any removal company is licensed and bonded.

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Who pays for my living expenses?

• If covered damage is so extensive that your residence is uninhabitable, then Additional Living Expenses (ALE) may be available. Generally, ALE reimburses you for increased living expenses you incur as a result of your home being uninhabitable and is subject to the deductible and the terms and conditions of the policy. ALE is available to you while your home is uninhabitable and being repaired, replaced or up to 24 months, whichever is shorter, and as otherwise indicated in your specific policy.

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How do I replace everything I have lost?

• For personal contents (the Coverage B portion of your policy), typically, you are initially paid actual cash value (replacement cost minus depreciation). Then, when you actually replace the damaged personal contents, you will receive the difference as a replacement cost benefit. This assumes the replacements occur within the designated time frame of the contract.

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How do I complete a personal contents inventory of my damaged property?

• Your claim specialist is available to assist customers with completing the inventory. Customers who do not need a face-to-face meeting can provide their inventory to their claim handler for processing or submit them electronically directly to their claim file 24/7.
• Customers do not have to wait until their entire inventory is completed to submit to their claim. We encourage submitting inventories by rooms to make it easier for our customers to compile.
• State Farm recommends grouping items of similar quality/price/age: For Example: clothing-jeans-20 pair/shirts-30/etc, cleaning supplies, over-the-counter medication/kitchen utensils as this can help expedite the process. Unusual, specialty or high cost items should be listed individually.
• Again, if you need any assistance with the contents inventory process, all you have to do is ask your claim specialist for help.

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How long does coverage last for a typical insurance policy?  

• An insurance policy is a contract. You pay for coverage for a specified amount of time defined as the policy period (for example six months or a year). The contract protects you for that specified amount of time and for losses you incur under that contract.

• Coverage is not cumulative year to year, meaning your premiums do not add up like a savings account to be used when there is a claim.

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Does State Farm have the resources to pay all of these claims?

• Disasters like these are a reminder that our business is highly volatile. Despite that volatility, our long history of financial strength is what allows us to keep the commitments we have made to our customers, helping to remove some of the uncertainty from their lives during times of loss.

• We have faced countless significant weather and other major disasters over our 95-year history, and we stand ready for more as we help people manage the risks of everyday life, recover from the unexpected, and realize their dreams.

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Will rates go up for my homeowners insurance?

• Rates are determined based on our anticipated need to pay future claims, not to make up for past losses. It is important to note many factors are considered when underwriting and pricing a homeowners insurance policy because each customer’s circumstances are unique.
• We encourage all of our customers to have a conversation with their agent to make sure they are comfortable with the appropriate coverage for their unique situations, including reviewing discounts available to them that could decrease their premiums.

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Insurance provided by TNCs may be limited in scope and coverage. Personal auto policies generally do not extend coverage to the use of personal cars as taxis or livery vehicles, including their use in TNC services.

To adapt to changing customer needs, beginning June 26, 2017, State Farm will offer a Transportation Network Company Driver Coverage endorsement in five additional states, Arkansas, Maryland, Nevada, Vermont and Wyoming.

The endorsement will be available starting June 26, 2017.

Earlier this year Arizona, Florida, Kansas, Michigan, Missouri, Montana, New Hampshire, New Jersey, New Mexico, Pennsylvania, South Carolina, Texas, Utah, Virginia and Washington, D.C. received the coverage endorsement, and twenty-three jurisdictions obtained the endorsement in 2016: Alabama, California, Colorado, Connecticut, Delaware, Georgia, Idaho, Indiana, Iowa, Kentucky, Louisiana, Maine, Minnesota, Mississippi, North Dakota, Nebraska, Ohio, Oklahoma, Oregon, Tennessee, Washington, West Virginia and Wisconsin.

"Adapting and innovating to our customers' changing needs is critical," said Vicki Harper, State Farm Public Affairs Specialist. "This new product is an example of our commitment to our customers and provides them coverage, and peace of mind, when they use their personal cars to provide TNC services."

TNCs may provide high liability coverage limits while a paying passenger occupies the driver's vehicle or when the driver has been connected with a passenger and is on the way to pick that person up. But TNCs tend to provide a much lower limit of liability coverage when drivers are just available for hire and may not provide the drivers with any medical payments, comprehensive, or collision coverages at all. The TNCs may not be providing coverage for injuries to the driver or coverage for any damage to the driver's personal car.

This new, optional State Farm TNC Driver Coverage endorsement is cost-effective and provides an opportunity for our customers to obtain coverage that will fill the gaps between their base auto policy and the coverage provided by a TNC.

Customers in these states who drive for a TNC should contact their local State Farm agent to learn more about the new State Farm TNC Driver Coverage endorsement.

(Individual State Graphics Available for Download Below)

Satchel filled with curriculum materials. Check. A silver dollar. Check. A positive attitude. Check.

These are some of the tools Ian Wickline, Stacie Lehman and Lad Drago use when they teach Junior Achievement (JA) courses.

"I remember an insurance agent teaching JA when I was in the 5th grade," says Ian, IT analyst. "It made an impression on me. This is my chance to give back, represent State Farm^® and leave a lasting impression on the kids I teach."

Ian has been teaching JA courses to third-grade students in the same classroom and for the same teacher for 11 years.

"I explain to the class how a city works, and how and why a city is laid out the way it is," he says. "The students also learn about money, including information about checking and savings accounts, and how to open a business."

Junior Achievement USA provides financial literacy, work readiness and entrepreneurship programs for K-12 students across the country. State Farm has been associated with JA for more than 20 years. JA volunteers teach the courses and share their personal work experiences in the classroom.

Ian, Stacie and Lad volunteer with JA for different reasons

Stacie currently teaches fourth graders how money moves around a community. "I show them different coins. Some of them have never seen a silver dollar or half-dollar coin since they aren't used much," she says. "To teach them about production, we have a factory where we make paper doughnuts and decorate them."

"I've been teaching JA courses to kindergarten, second-, third- and fourth-grade students for eight years," says Stacie, a State Farm P&C secretary. "I love working with kids because they soak in all of the new information and grasp the meaning. It's awesome to go week after week and see how they remember all the new things we talked about the previous week."

Lad, a State Farm agent in Spanish Fort, Alabama, recently taught his first class. "It was Economics for Success," says Lad. "I teach sixth graders about budgeting, taxes and the difference between gross and net income."

"I tell them what they save can equate to the type of car they drive or the home they live in," Lad continued. "One student exclaimed it wasn't fair how much taxes were taken out of a paycheck. I explained what that money was used for. He still thought it was unfair, but he understood it better."

"It's also not too early to talk to them about careers," he says.

"I have one girl who makes bracelets and sells them," says Ian. "I told her to take the principles she learns in the JA class and apply them to her small business. These classes allow kids to dream."

"I love it when kids recognize me in the store, and I get cards from them at the end of the session," says Stacie. "They are always happy and energetic. Oh, to be seven again!"

"I look forward to teaching the class. The kids make my day," says Lad. "I enjoy their energy and their worldly outlook. They give me high fives when I leave the classroom. That's the best."

JA recently presented State Farm the Bronze U.S. President's Volunteer Service Award. The Award recognizes individuals' and organizations' significant time contribution to volunteer service.

State Farm associates volunteered more than 6,400 hours of financial education programs to students throughout the U.S. to earn the 2014 – 2015 award. State Farm has been involved in JA for more than 20 years.

"Junior Achievement helps empower young people to own their economic success. And they do it through volunteers from organizations like State Farm," said Ed Quijano, a State Farm assistant vice president who accepted the award.

"There's something about the process of inspiring kids to dream big and reach their potential that also helps to enrich the lives of the volunteers themselves. Everyone benefits from getting involved with JA."

Click here to find opportunities to serve with your local Junior Achievement.

Insurance provided by TNCs may be limited in scope and coverage. Personal auto policies generally do not extend coverage to the use of personal cars as taxis or livery vehicles, including their use in TNC services.

To adapt to changing customer needs, beginning March 21, 2016, State Farm will offer a Transportation Network Company Driver Coverage endorsement in California.

"Adapting and innovating to our customers' changing needs is critical," said Tom Conley, State Farm Senior Vice President. "This new product is an example of our commitment to our customers and provides them coverage, and peace of mind, when they use their personal cars to provide TNC services."

TNCs in California provide $1 Million liability coverage while a paying passenger occupies the driver's vehicle or when the driver has been connected with a passenger and is on the way to pick up that person. However, TNCs provide a much lower limit of liability coverage when drivers are just available for hire and may not provide the drivers with any medical payments, comprehensive, or collision coverages at all. The TNCs may be providing no coverage for injuries to the driver and no coverage for any damage to the driver's personal car.

The new, optional State Farm TNC Driver Coverage endorsement (California) enables a policyholder to have his/her personal auto policy fill in the coverage gaps left by TNC-provided insurance. This cost-effective endorsement provides the driver with the full liability coverage limits(s) he has under his/her auto policy during the period of time when the driver is "available for hire." Additionally it provides the driver with all other coverages applicable to his/her auto policy during all periods of TNC driving.

California customers who drive for a TNC should contact their local State Farm agent to learn more about and see if they are eligible for this new State Farm TNC Driver Coverage endorsement.

A hail research field study isn’t exactly anyone’s idea of romantic. Swapping candle lit dinners for life on the road chasing storms probably wouldn’t work for most couples. But Dr. Tanya Brown and Dr. Ian Giammanco are anything but conventional.

Dr. Tanya Brown is the lead research engineer and director of hail research for the Insurance Institute for Business and Home Safety (IBHS). She conducts a major field study on hailstorms with a team that includes lead research meteorologist Dr. Ian Giammanco.

In addition to their research, the pair also happens to be dating.

Giammanco and Brown met while attending graduate school at Texas Tech University in Lubbock, TX, where they worked on several thunderstorm and hurricane field research projects. Since then, amid week-long beef jerky binges and of course the storms, Giammanco and Brown found some common ground.

The Research

IBHS develops safety research that can be translated into real world solutions, and the hail study is no exception. Giammanco and Brown seek to improve weather forecasts and influence the design of roofing products to be better prepared for hail damage.

Their hope is to leverage this study to decrease property losses caused by hail. The the work is being done in the central plain region of the United States. They study hail characteristics such as size, shape, density and hardness, so they can come as close as possible to Mother nature when they produce hailstones at the IBHS Research Center.

Love at First Hail

According to Brown, “We definitely did not have a love at first site kind of relationship. We had known each other for at least a year before we really ever had a conversation more than just saying hi while passing in the hallway.”

At the time they met, years before the hail field study had begun, they realized they both had a passion for field research.

It takes a special kind of love not only to be research partners, but also life partners. Brown explains, “I’d say our dedication to field work is what really ties us together.”

Bonded by a common goal that will eventually benefit the common good , their relationship is the perfect blend of uniqueness. “There’s not a lot of people out there that will basically give up their whole life for weeks or even months at a time to live in crummy hotels and eat fast food every meal of every day, not to mention braving the wind, hail, rain and storm surge, and actually enjoy doing it and get to do it with their significant other,” says Brown.

Benefits of the Study

The pair remains motivated; they believe in the good that this study will be able to produce. According to IBHS, as the population increases and the spacing between buildings decrease, there has been a significant uptick in damage due to hailstorms. In fact, from 1999 to 2011 hail was the number one cause of losses for Texas homeowners coming in at $10.4 billion according to The Texas Department of Insurance.

State Farm supports the work of Dr. Brown and Dr. Giammanco and believes in the good that can come from this kind of research. Besides studying hail, researchers also test hail resistant roofing material in the hopes of preventing damage. The field study also seeks to improve weather forecast models and hail detection.

Ups and Downs

But working with a loved one isn’t always easy, “we do disagree sometimes about the project, but ultimately we will arrive at what is best for the project, and that is a big reason that we’ve been so successful,” Giammanco says.

Ultimately their differences complement each other, Giammanco explains, “Tanya makes sure that I let things go when I need to so that I don’t obsess about things like a missed forecast or not enough data.”

Brown explains further, “We have worked together for so long that we really have a natural rhythm, and each take advantage of each other’s strengths. There are a lot of things I don’t have to worry about taking care of because I know he’s got my back and vice-versa. It makes us really efficient and successful.”

The most difficult part of their nomadic relationship is having them both away from home at the same time, “there’s no one there to check the mail, water and cut the grass, and most importantly, take care of my beagles,” Brown says.

But they know they are meant to be together. “Tanya is the only girl I know who would swim and wade through storm surge water to retrieve instrumentation during a field project, so she is the girl for me!” Giammanco says.

The Impact

With all the good Brown and Giammanco hoped would come out of their studying of severe weather, love was not what they expected, but they’re glad it did. Even still, they remain dedicated and focused on their work, Brown says, “We definitely push each other to achieve success and fill in each other’s gaps, which makes us well-suited to tackling such a complex issue such as hail. We’re definitely looking forward to continuing our research partnership both in the field and in the lab, and look forward to making a huge impact in the coming years.”

The more successful the study is the better educated homeowners, insurance companies, and roofing manufacturers can be. With this knowledge and combined power, hailstorm damage can hopefully fall significantly.

2013 IBHS Hail Field Project Highlights from IBHS on Vimeo.

When Claire’s only child, Jude, was born, she instantly fell in love. As the weeks went by, Claire and her mother, Liz, started to notice that something was wrong. Jude cried often and wouldn’t gain weight. Then one day, after five seizures, a call to 9-1-1, and hospitalization, Jude was diagnosed with epilepsy.

Typically, people with seizure disorders have difficulty qualifying for an affordable life insurance policy, but thanks to Jude’s grandmother, he is protected for life. When Jude was 20 days old, Liz purchased a whole life insurance policy for him with a Guaranteed Insurability Option (GIO) rider. It will not only allow Jude to purchase additional insurance in the future without proof of insurability, but it will also build cash value that might be used for other things throughout his life, including future medical costs or education.

“I got life policies for both of my grandchildren right after they were born,” said Liz. “I had purchased them for my children and then wanted them for my grandchildren as well. I like the policy because it’s affordable, it builds cash value, and it offers the guaranteed insurability. It just seemed like the best life-long policy.”

Claire feels their unique story shows how important life insurance is and that it’s something all families should consider. Although Jude’s epilepsy diagnosis was quite unexpected (there is no family history), the disease is actually rather common – according to the Epilepsy Foundation, 50 million people are affected worldwide and almost 500 new cases of epilepsy are diagnosed every day in the U.S.

“As a mother, we believe that we have the ability to protect our children from everything. With Jude having the seizures when he was little, I realized there are a lot of things I can’t protect him from,” Claire said. “There are things in life moms can’t prevent or control. It’s like if there was a big earthquake, you know what – I couldn’t stop it… I couldn’t make the earth stop shaking. But I feel like Jude’s life insurance is a safety net. I know that no matter what happens throughout his life, he will always have that.”

Liz feels Jude’s life insurance policy is a gift that will keep on giving, probably longer than she’ll be around. “It will certainly outlast any of the other type of gifts that a grandmother could give,” Liz said. “Blocks, toy trucks, whatever will be discarded, but this will keep going for him. Because I took the guaranteed insurability rider, he will be able to continue to add life insurance over time throughout his life – like when he gets married or he has a child. He can add more and it will continue to build cash value.”

Despite Jude’s health issues, he is exuberant, active, rambunctious, and goes nonstop from morning to night. He loves taking things apart and putting them back together, making new friends, and is very loving, especially to his mom and grandma.

“Obviously, as a mom, you fall in love instantly…but as I’ve watched him get older and have to go through so much, and he’s just so amazing…that your heart grows more and more every day,” Claire says.

Life insurance helped prepare the family when the unexpected came their way and they are now in a good place. They are dealing with and overcoming the challenges of epilepsy and are positive about Jude’s future. He’s down to one epilepsy medication, attends a regular preschool program, does everything any other five-year-old child does, and has a very bright future.

“I think it’s going to be really great,” Claire said. “I really hope he’s able to inspire other children like him to reach for the stars…because there’s nothing that he can’t do, not with that smile!”