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A Pennsylvania judge recently ruled that All State
Insurance is liable for "misleading and deceptive" practices
against consumers involved in auto collisions with All State insured
members.
What the deal?
Let's say that you are insured with Company X and were involved in an
accident with an All State insured member. All State would send you a
brochure titled, "Do I need an Attorney." In part of the
ruling, the judge said this brochure "created confusion." Many who
read the ad didn't hire an attorney when assured by All State that the claim
would be handled quicker without one. Information provided on other All
State forms requested personal and medical information. The judge ruled that
this info could be damaging against that person if the case eventually went
to court.
Do you have a State Farm Homeowner's policy?
Pay attention to recently mailed information that states that
"guaranteed replacement costs" and "guaranteed extra
coverage" is no longer covered on most policies. The mailer also
contains language stating that replacement costs, in the event of a
catastrophic incident (fire, etc), would provide only for "similar,
rather than equivalent" coverage. It's so important to read the entire
contents of this mailing. It's also important to be sure that your home is
insured for full-replacement value and that the coverage will permit
re-construction on the same site.
This State Farm policy change is just one of
potentially many to be seen with homeowner policies. Contact your policy
representative to be sure that current coverage is adequate. This may
be a time when switching insurance companies to get this adequate coverage
may be necessary.
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