An Aurora woman is the latest to initiate a class action against State Farm, alleging the insurer improperly refused to cover customer claims stemming from burglaries and thefts.
Takeisha Harrison filed a complaint Aug. 28 in Cook County Circuit Court concerning the renter’s policy she obtained Jan. 12, 2021, with a one-year effective window opening March 23. She believed the policy would cover “accidental direct physical loss” to her personal property up to $30,300. She also referenced a personal articles policy effective June 2, 2021, through June 2, 2022, covering seven pieces of jewelry worth a combined $87,900 based on written appraisals she provided to State Farm.
According to the complaint, Harrison’s Aurora apartment was robbed Oct. 23, 2021, with all the covered jewelry stolen. She said she reported the theft to the Aurora Police Department and State Farm. The complaint details State Farm’s claims process, including multiple requests for dozens of supporting documents having Harrison and her daughter sit for sworn examinations.
State Farm finally denied the personal articles claim on Sept. 8, 2022, citing “a violation of policy provisions” with a letter asserting Harrison “intentionally concealed and/or misrepresented material facts and/or circumstances relating to this insurance claim” and claiming she repeatedly failed or refused to provide “the records and documents we reasonably and repeatedly demanded.”
Although Harrison said she can’t find the denial letter under the renter’s policy, she did provide a Dec. 29, 2022, letter supporting her allegation the denial was on the same grounds as the refusal under the personal articles policy.
In a breach of contract claim, Harrison said the renter’s policy specifically covered “accidental direct physical loss” to personal property as a result of theft. She offered an alternative to that claim, seeking a declaratory judgment. A third count accuses State Farm of operating in bad faith. Harrison said the majority of residents in her ZIP code are Black, as is she, and alleged the company wouldn’t treat its clients who live elsewhere in the same manner.
She called for creating a class of possibly “hundreds and likely thousands” of Illinois residents whose ZIP code constitutes a majority of Black residents and who “submitted personal property theft claims on homeowners, renters and personal article policies between August 28, 2018 until the time judgment is entered that were denied for fraud, misrepresentation or failure to cooperate by State Farm.”
The class allegations open with a count of fraudulent misrepresentation, arguing “State Farm knew it would not pay” theft claims when issuing policies to people who would be eligible for class membership.
“Instead, State Farm would employ overly intrusive investigations through their Special Investigations Unit requiring the submission of items and the recorded examinations of both insureds and individuals beyond the insured’s control that would not have been required of non-African Americans,” Harrison alleged. “After employing these overly intrusive investigative methods, State Farm would deny class member claims on the basis of a failure to cooperate, misrepresentation or fraud.”
Harrison also alleged a violation of state consumer fraud and deceptive business practices law. In addition to class certification and a jury trial, she seeks a court order that the claimed losses are recoverable under clients’ policies and forcing State Farm to pay for said losses. She also seeks compensatory and punitive damages.
Steven Mikuzis, of Mag Mile Law, Chicago, is representing Harrison.
Other lawsuits facing State Farm include a 32-state class action alleging it fraudulently reduced the amounts paid for cars deemed a total loss and another saying it holds out on interest allegedly owed to Illinois claimants from awards and judgements.