Georgia Homeowner Out $12,000 After State Farm Denies Roof Damage Payout

A homeowner in Georgia is alerting the media after he feels State Farm reduced his roof damage claim without just cause.

Georgia homeowner Venkat Garikapati’s roof was damaged by heavy winds in 2021. He filed a claim with his homeowners insurance company, State Farm, to fix the damage.

State Farm assessed the damage and approved the replacement of 38 shingles at a total cost of $1,422.15 – less than Garikapati’s $2,500 deductible.

Because the cost of repairing the roof was higher than the deductible, the claim was closed without paying.

In a statement to Atlanta news outlet Atlanta News First, Garikapati claims his roof was “torn all to pieces” with “more than 70 shingles” creased or missing.

Garikapati, like many homeowners with a denied claim or low payout offer, hired a public adjuster.

The public adjuster spent years arguing with State Farm for a full roof replacement. The public adjuster showed State Farm where the roof was damaged or leaking. State Farm continued to deny the claim for years.

Eventually, however, State Farm agreed to the roof replacement, and Garikapati proceeded with roof repairs. Unfortunately, that’s where things got messy.

State Farm Denies Full Roof Replacement Payout After Three Years of Delays

State Farm approved a full roof replacement on April 25, 2024, more than three years after the original claim and storm damage.

A local roofer completed the roof replacement at a cost of around $12,000, assuming he would be reimbursed by State Farm.

Unfortunately, State Farm failed to pay the full replacement cost for the roof, pointing to a part of the insurance policy that requires repairs or replacements to be completed within two years of the date of loss to receive additional payments. State Farm had sent an initial actual cash value check but failed to pay the full replacement cost because of this clause.

Local Roofer Declines to Put Lien on Home

When contractors don’t get paid, they could put a lien on the client’s home.

Local roofer David Garner performed the full roof replacement on Garikapati’s home but was not fully reimbursed by State Farm.

Although Garikapati has a new roof, David Garner is out $12,000.

Instead of putting a lien on Garikapati’s home and blaming the homeowner, Garner is blaming State Farm:

“It’s not the homeowner’s fault that this is taking place,” explained Garner in a statement to Atlanta News First.

What am I supposed to do? I’ve already built the roof. I paid for the materials. I paid for the labor. Everything’s done.

Garner blames State Farm for continuing to deny and delay the claim, ultimately reaching a point where they could limit payout because of the time-restricted replacement value clause:

The whole reason this claim took a long time to get approved is because deny and delay, deny and delay.

As Atlanta News First explains, State Farm is the largest insurer in Georgia and receives hundreds of complaints per year. In fact, State Farm had 892 formal complaints to the Georgia Office of Insurance in 2024 – an increase of 126% from 2022. Allstate (77% increase since 2022) and Progressive (49% increase since 2022) also had higher complaint rates.

State Farm Denies Payment Because of Replacement Cost Clause

Atlanta News First obtained copies of emails between Garikapati and State Farm explaining the issue.

According to homeowner Garikapati, his State Farm insurance policy had a clause “in fine print” explaining he needed to complete repairs and replacements “within two years after the date of loss” in order “to receive any additional payments on a replacement cost basis.”

In an email with Garikapati, however, State Farm appeared to avoid mentioning this clause, simply claiming the roof repairs would be based upon the submission of photos and other evidence. Here’s how State Farm summarized the issue in an April 25, 2024 approval of the roof repairs:

Replacement cost benefits will be issued contingent completed of roof replacement and submission of photos, submission of photos, certificate of completion and or signed contract agreement with service provider.

Garikapati and Garner gave State Farm the paperwork the next week. Then, State Farm declined to pay the additional replacement cost funds.

Ultimately, Garikapati and Garner feel they acted in good faith. The homeowner paid his premiums on time for years before finally needing to make a claim. That homeowner experienced legitimate damage from a covered loss. The homeowner hired a public adjuster to negotiate with the insurer in good faith. Then, the homeowner hired a reputable local roofer to repair that damage, providing State Farm with all required documentation along the way.

According to the Atlanta News First report, the homeowner and roofer did nothing wrong – but State Farm is “sticking to its decision.” For now, Garikapati has a new roof – and Garner is out $12,000 for the cost of the roof replacement.