Over a $16,000 renter’s policy, State Farm dragged Ciressa Henderson through hell. Her reality was this: As virtually a lifelong renter, she cannot find any long-term housing because State Farm considers signing a lease permanent housing, and therefore won’t pay her.
“I was told if you sign a one-month lease or any type of lease, you forfeit your loss of use, which means that $16,251—we will keep—and you forfeit it because you found somewhere else to live,” said Henderson.
Because of this, Henderson is thrust back into Los Angeles County’s housing affordability crisis, and trapped in the high-priced short-term rental system of Airbnbs, which don’t require leases. Over half of LA County residents are renters, and over half of renters are considered “cost-burdened.”
Since State Farm is discouraging signing leases, Henderson said she moved 8 times in four months and recouped less than half of what her policy owed her.
To give an idea of what kind of bind this has put her in, one day Henderson said she had to pay $8,000 out of pocket to secure overlapping Airbnbs.
“I had to pay both of those Airbnbs at the same time on the same day to the point that that my bank wouldn’t cover the second one because it looked like fraud,” said Henderson.
None of this is spelled out in the policy. She is only told about the lease condition verbally, and not in writing, according to Henderson.
When fire swept through Henderson’s Altadena neighborhood, it took everything. The three-bedroom, two-bathroom home she and her sister had lived in for 25 years was reduced to ash. With it went decades of memories, personal belongings, and critical medication. She escaped with only the clothes on her back and a small suitcase left over from a trip.
“My $16,000 a month lupus medicine burned up in the fire,” said Henderson, who is disabled.
“Replacing that should be my concern, but my concern is State Farm.”
Ciressa’s understanding of renter’s insurance was simple: that if she lost the ability to live in her home because of a fire or natural disaster, her policy would help cover temporary housing. But State Farm imposed rules she had never seen in her policy.
“I think my idea and a lot of other people’s idea of having insurance as a renter was if you are displaced or you can’t live in a home for a while, they would help you,” said Henderson.
But as she soon found out, that wasn’t really the case. Over nearly six months, Ciressa called State Farm over 80 times (she showed us the receipts). But She was volleyed between adjusters, given conflicting answers, and made to re-submit receipts sver technicalities, such as a receipt not “looking right,” even when it showed her credit card number and was backed up by screenshots of her bank account.
Adding insult to injury, State Farm continued charging her for her renter’s policy even after her home was gone. Nearly a month after her displacement from the fire, she received a phone call from State Farm.
“’Hi, Miss Henderson,’” recalled Henderson. “’We’re just calling you. We’re not sure if you overlooked your policy or your payment, but we wanted to know if you wanna make a payment over the phone.”
“I said, ‘the house burned down.’”
“They said, ‘You should pay keep paying your policy because, technically, they didn’t cover you,” recalled Henderson. She said she was told to keep paying the policy because it would cover her as a displaced, temporary tenant
“I was told as long as I am displaced and only have temporary housing, I am still covered under renters policy, in case something happens,” said Henderson. “Not sure how true that is, I just keep paying them just in case. Was told, once I find something permanent give them a call so they can cancel policy. As that is what they are doing once you file a claim whether they pay you anything or not.
“They said that while you’re in temporary housing, they will cover you, in case something happens there.”
So Henderson was paying them, but insurance still wasn’t paying her.
But after all that, including speaking to news oerganizations and anyone who would listen for half the year, Ciressa says she was finally paid what she was owed. She now tells every renter she meets to read their policy carefully, and not to assume it will protect them.
“Number one, go read through your policy,” said Henderson.
She says it again.
“Go read through your policy.”