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ConsumerWatch: Allstate Denies SF Homeowners' Claims In Water Main Break

SAN FRANCISCO (CBS SF) -- A sinkhole caused by a broken water main in San Francisco's West Portal neighborhood has put some homes in danger, and the response from one insurance company left some of the affected homeowners feeling left in the cold.

Allstate Insurance has denied claims by policyholders whose homes were damaged from last week's water main break, refusing to cover the repairs, and blamed the city for the damage.

"Good hands with Allstate. We didn't get good hands, we got the finger!" said Allstate policyholder and homeowner Ray Moreno.

Allstate spokesman James Klapthorn said in a statement, "Standard homeowners' policies generally do not cover damage from a broken water main," adding that "policies can, and do, differ."

The City of San Francisco said it expects insurance companies to cover such damage and later make arrangements with the city for compensation.

The city was working on paying homeowners as soon as possible, and hoped to make payments within a week or two.

Until then, homeowners with denied claims were left with little recourse.

Related Coverage:
Lee Meets With Residents Devastated By Water Main Break

(Copyright 2013 by CBS San Francisco. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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