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State Farm faces lawsuit as owner alleges profit-motivated claim denials

Koteiba Azzam, a Sunland Park, New Mexico homeowner, filed a complaint in the United States District Court for the District of New Mexico alleging that State Farm Fire and Casualty Insurance Company systematically denied and underpaid his claim after water from a burst pipe caused extensive damage to his property on January 24, 2025 or about this date. According to the complaint, State Farm’s investigation was “insufficient and unreasonable,” resulting in the denial of full coverage for repairs, including full roof replacement and associated contractor costs. The insurer is accused of closing the claim prematurely and leaving the property in poor condition.

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