Koteiba Azzam, a homeowner in Sunland Park, N.M., has filed suit 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 or about Jan. 24, 2025. According to the complaint, State Farm’s investigation was “insufficient and unreasonable,” resulting in the denial of full coverage for repairs, including a complete roof replacement and associated contractor costs. The insurer is accused of closing the claim prematurely and leaving the property in disrepair.
State Farm faces lawsuit as homeowner alleges profit-driven claim denials
