'Deny and delay': This Georgia roofer is out $12,000 after State Farm approved a homeowner's claim to fix his roof — then refused to pay out in full. What to do if it happens to you

Local roofer in the lurch

When a contractor does work on a home and isn't paid for it, they may be able to place a lien on the home. However, Garner doesn't want to do that to Garikapati.

"It's not the homeowner's fault that this is taking place," Garner said.

Despite the clause in Garikapati's insurance policy, Atlanta News First reports an attachment to State Farm's approval estimate stated: "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."

But when Garner submitted the paperwork, he said State Farm wouldn't pay up.

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

Garikapati filed a complaint with the Georgia Office of Insurance and Safety Fire Commissioner in January, per Atlanta First News, but that went nowhere.

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

Atlanta News First says it looked at recent complaints filed with the commissioner’s office and found that State Farm, the state's biggest insurer, had 892 complaints in 2024, up 126% from 2022. It also found that Allstate had 770 complaints, up 77% from 2022, while Progressive had 557, up 49% from 2022. The office did not supply information about the results of complaints.

Garner feels like he’s out of options — he doesn't think it would be financially feasible to sue State Farm, and he's not interested in holding Garikapati responsible.

"He was operating in good faith, just like I was," Garner said.

A spokesperson for State Farm told Atlanta News First "we believe we have provided every benefit available to the customer within their policy."

Stop overpaying for home insurance

Home insurance is an essential expense – one that can often be pricey. You can lower your monthly recurring expenses by finding a more economical alternative for home insurance.

Officialhomeinsurance can help you do just that. Their online marketplace of vetted home insurance providers allows you to quickly shop around for rates from the country’s top insurance companies, and ensure you’re paying the lowest price possible for your home insurance.

Explore better rates

What to do if your insurance company comes up short

So, what can you do if your home insurance company comes up short on funds or doesn't pay?

First, you should read the terms of your policy carefully. What happened to Garikapati above wasn't exactly his fault, but it seems the fine print of his policy provided the insurance company with an out. Familiarizing himself with those details may have prevented the situation above from occurring.

One thing you'll want to check your policy for is exclusions. There are certain things your insurer may not pay for, which should be outlined in your policy agreement. It's also important to read the terms of your claim approval carefully to make sure you and your contractor are in compliance.

But from there, if you believe an insurer isn't paying out like it's supposed to, you should collect evidence. Document all of the work that was done so you can show if it was in accordance with what your insurer approved. That means taking pictures and getting a write-up from your contractor detailing the work performed.

Your insurer may have tools in place for claims and payment denials. Follow those once you've gathered your documentation. If that doesn't work, you can try to file a complaint with your state's insurance agency. If that doesn't work, you may want to seek legal guidance.

To be clear, there’s a difference between your insurance company denying a claim and refusing to pay following an approval. There should be no expectation your insurer will pay out on a claim that’s been denied.

Also keep in mind that any contractor you hire may not be as understanding as Garner, and you don’t want yours to come after you for their money. So, you should do all that you can to ensure everything is above board.