Georgia Roofer Loses $12,000 After State Farm Approves Claim Then Withholds Payment

Homeowner and Roofer Battle with Insurance Company Over Roof Replacement

When Venkat Garikapati, a homeowner in Cumming, Georgia, faced significant wind damage to his roof in 2021, he turned to his home insurance company, State Farm, to cover the repairs. However, what was supposed to be a straightforward claim turned into a lengthy and frustrating battle.

State Farm approved the replacement of only 38 shingles at a cost of $1,422.15, which was less than Garikapati's $2,500 deductible. As a result, the claim was closed without any payment. The roofer, David Garner, who had been hired to fix the damage, disputed this assessment, stating that the roof was in much worse condition than the insurance company claimed.

"It was torn all to pieces," Garner told a local broadcaster. "More than 70 shingles were creased or missing." Despite this, State Farm continued to deny the claim for years. It wasn't until April 25, 2024 — more than three years after the initial damage — that the insurance company finally approved a full roof replacement.

Garikapati expressed frustration with the process, noting that while State Farm is always prompt in collecting premiums, getting approval for the claim took an unusually long time. "They are never shy on collecting the monthly premium at all, but to get this approved took quite a long time," he said.

After the initial "actual cash value" check cleared, State Farm refused to pay the full replacement cost, citing a clause in Garikapati's policy that requires the repair or replacement to be completed within two years of the date of loss. This left Garner out of pocket by $12,000, and he blames the insurance company entirely for the situation.

A Contractor in a Difficult Position

As a contractor, Garner has the option of placing a lien on the property if he isn't paid. However, he doesn't want to do this to Garikapati, whom he believes is not at fault. "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 reported that an attachment to State Farm's approval estimate stated: "Replacement cost benefits will be issued contingent on completion of roof replacement and submission of photos, certificate of completion, and/or signed contract agreement with service provider."

However, when Garner submitted the necessary paperwork, he said State Farm refused to pay. "What am I supposed to do?" he asked. "I've already built the roof. I paid for the materials. I paid for the labor. Everything's done."

Garikapati eventually filed a complaint with the Georgia Office of Insurance and Safety Fire Commissioner in January, but the issue remains unresolved.

Rising Complaints Against Major Insurers

According to Atlanta News First, recent data shows a sharp increase in complaints against major insurers in Georgia. State Farm, the state’s largest insurer, had 892 complaints in 2024 — a 126% increase from 2022. Allstate had 770 complaints, up 77%, while Progressive had 557, up 49%. The office did not provide information on the outcomes of these complaints.

Garner feels like he has exhausted his options. He does not believe it would be financially feasible to sue State Farm, and he is 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."

What to Do If Your Insurance Company Falls Short

If you find yourself in a similar situation where your insurance company fails to cover the full cost of repairs or refuses to pay, there are steps you can take:

• Review Your Policy Carefully: Understand the terms, exclusions, and conditions outlined in your insurance agreement. This can help prevent misunderstandings and ensure you are aware of what is covered.
• Document Everything: Keep detailed records of all work performed, including photos, invoices, and written documentation from your contractor. This can serve as evidence if disputes arise.
• Follow Up on Claims: Use the tools and procedures provided by your insurer for handling claims and payment denials. If this doesn’t resolve the issue, consider filing a complaint with your state’s insurance agency.
• Seek Legal Guidance: If all else fails, consult with a legal professional to explore your options for recourse.

It's also important to remember that while your insurance company may deny a claim, they are not obligated to pay out on a denied claim. Additionally, ensure that any contractor you hire understands the terms of your policy and is willing to work within them.

By staying informed and proactive, you can better protect yourself and avoid situations like the one faced by Garikapati and Garner.