Claims denied: Allstate customers often see repeated denials of roof replacement insurance claims
LOVELAND, Colo. — Living on the border of Berthoud and Loveland in northern Colorado, Brent Danner is accustomed to peace and quiet.
But a July 20 hail storm broke the silence — and a lot of other stuff on his property.
Danner wasn't worried though. He has homeowner's insurance through Allstate and thought a roof replacement would be a no-brainer. But one Sunday, he got a call to let him know that the claim was denied.
"They said that they couldn't see the damage and that the damage didn't exceed our $2,500 deductible, which is insane," Danner said.
IkeJon Nissen, who owns Berthoud-based roofing company Roof Link , had a different take. He called the damage "textbook" and estimated a cost of $74,000.
Danner appealed the denial. While some of his neighbors received their insurance checks within two weeks, Nissen said others in the area also saw their claims denied, and they all had one thing in common: They're Allstate customers.
"I think this year, we're at 21 Allstate claims in my company in the Berthoud area, and the first eight were all denied," Nissen said.
Denver7 Investigates researched complaints filed against Allstate for denied claims through the Colorado Division of Insurance and found more than 40 closed complaints during the past year. Out of those claims, more than 25% resulted in Allstate paying the customer anywhere from $1,500 to $26,000.
One complaint from Highlands Ranch noted that "all of my neighbors have had new roofs from these storms. I have been denied three times." In Greeley, one person wrote, "When I ask for answers on why they're not covering the roof, they're very vague on the subject." A Lakewood resident said they "would urge (the Department of Regulatory Agencies) to take a very hard look at Allstate's practices."
These three complaints resulted in a payout from Allstate.
But in many cases, the state's investigator could not resolve the dispute, writing in one claim that "we do not have the authority to compel the company to adjust the claim decision."
A spokesperson for the state's Division of Insurance told Denver7 Investigates that Allstate has not been fined within the past five years for its claims-handling practices.
"I think the state does a good job — a really good job — with the tools they have," said Brad Levin, an attorney who specializes in bad-faith insurance claims.
He said that state regulators have limited power and mostly just facilitate communication between the insurance company and the customer. This means some consumers have to go to court.
A 2008 Colorado statute requires insurance companies to not unreasonably deny or delay payment of claims or they will have to pay attorney's fees and double for damages.
"It does not necessarily solve the problem," Levin said. "And the reason for that has to do with the costs that are involved."
He said these cases often go to federal court and can take years to hash out.
After Denver7 Investigates reached out to Allstate, Danner said his new roof was finally approved, but he still thinks the delays and denials are a story that needs to be told.
"I think it's sad that Allstate's slogan is 'You're in good hands,' but the reality is you're not. And it's just a gimmick," he said.
Allstate declined interview requests and did not respond to questions regarding the complaints. The company did provide a statement regarding Danner's claim, stating, "We conduct thorough reviews of each claim and address them according to each customer's policy. Regarding this specific claim, we worked with the customer and the claim has been fully resolved."
