In the case of the sprinkler leak, State Farm issued a denial letter, citing a “vacancy condition” in the policy. Green Lamb contends that it was using the entire building for its own operations at the time of the leak and that the damage should have been covered. They argue that State Farm’s blanket denial does not comply with Nebraska law, which requires a reasonable and accurate explanation for claim denials.
The hailstorm incident in 2021 also saw State Farm initially underestimate repair costs by a significant margin. Green Lamb claims that the insurer either intentionally ignored the extent of the damage or failed to detect it due to an improper investigation. Despite three separate estimates, Green Lamb maintains that State Farm’s payments have never reflected the full replacement cost of the damaged roof.
Green Lamb’s allegations of State Farm’s bad faith conduct highlight a critical issue for policyholders – insurers not acting in their best interests. It is crucial to hold insurance companies accountable for their actions and ensure they treat policyholders fairly.
