PAnews.com, Port Arthur, Texas

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September 7, 2012

Texas DA investigating State Farm hurricane claims

AUSTIN —  Investigators in Texas have opened a criminal probe into how State Farm handled perhaps thousands of insurance claims from homeowners involving hurricane damage.

Gregg Cox is head of the public integrity unit of the Travis County District Attorney’s office in Austin. He said Friday that his team first began its investigation months ago, but that he couldn’t comment further.

Some homeowners have sued State Farm’s Texas subsidiary, State Farm Lloyds, alleging that their claims for hurricane-related damage were improperly denied.

ABC News is reporting that Cox’s office’s investigation began after authorities received communications from State Farm managers in Texas related to the company’s denial of claims for a type of roof damage that commonly occurs during hurricanes.

Cox said he’s not sure how long the probe may take.

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