“I’m so lost”
Mr. Young, the salesman hired by State Farm to arrange repairs to Ms. Burgess’ house, has seen insurers knock down and lobby other black customers – even though his Los Angeles-based company Valley Green, which specializes in repairing damaged homes depends on the insurers for the business.
He fought on behalf of Langston Phillips, who nearly lost his house during a fight with his insurer Pacific Specialty. Three years ago, Mr. Phillips’s kitchen had been flooded in a burst pipe and ruined parts of his three-bedroom house in Inglewood. A Pacific Specialty appraiser found that the company owed Mr. Phillips to repair costs of just over $ 11,000. Mr. Phillips’ contractor said his house needs far more extensive repairs.
Pacific Specialty asked Mr. Young to take a look. Mr. Young decided the repairs would cost more than $ 33,000. A battle ensued in which Mr. Young sided with Mr. Phillips despite being hired by Pacific Specialty. Because of the dispute, the amount Pacific Specialty was willing to pay to pay Mr. Phillips even reached him, forcing him to move into a single hotel room with his two children while he waited for his kitchen to be rebuilt. On a particularly bad day, he emailed a Pacific Specialty representative asking for clarification on when some of that money would arrive. “I’m so lost,” he wrote.
“We strive to pay claims as quickly and fairly as possible in order to bring the insured back to their pre-loss standard of living,” said Kara Holzwarth, Pacific Specialty General Counsel. “We find that water leakage can be fraught with disagreement.” She said Pacific Specialty’s treatment of Mr. Phillips had nothing to do with his race.
After two years of fighting, Mr. Phillips gave up. Concerned about the loss of the house, he moved back in and started working on weekends to pay for the repairs – replacing the cabinets, floors, and plumbing – that he was doing himself. “I’m bone tired,” he said.
Mr. Young has since realized that most insurers are unwilling to work with him. He is currently suing 17 insurance companies in succession for discrimination after the companies refused to include him on their supplier lists. He has reached a confidential settlement in his lawsuit against travelers and has pending complaints against others.
“I’m the only one who rattles the cages,” he said, “and says why don’t you give minority sellers work?”
Niraj Chokshi contributed to the coverage.
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