News Archive - Bloomberg: "The Insurance Hoax
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Property insurers use secret tactics to cheat customers out of payments--as profits break records.
By David Dietz and Darrell Preston Bloomberg Markets September 2007
Julie Tunnell remembers standing in her debris-strewn driveway when the tall man in blue jeans approached. Her northern San Diego tudor-style home had been incinerated a week earlier in the largest wildfire in California history. The blaze in October and November 2003 swept across an area 19 times the size of Manhattan, destroying 2,232 homes and killing 15 people. Now came another blow.
A representative of State Farm Mutual Automobile Insurance Co., the largest home insurer in the U.S., came to the charred remnants of Tunnell's home to tell her the company would pay just $184,000 of the estimated $306,000 cost of rebuilding the house."
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