KINGSQUEAK.ORG & KC2RGW.COM

In my previous summary, your hero left off by filing a written dispute of the ludicrous claim settlement offered by Allstate. In a nutshell, they didn’t pay for anything at all of significance with regard to the damage inflicted by hurricane Irene.

Well the game is still going here. What they do is continually rotate your claim dispute among agents, who in turn claim to have called the customer, send you a letter saying “we have tried to reach you but you never answer and will cancel your claim” over and over again.

In fact I have called each of them at least three times, leaving detailed voicemail each and every time and I have not spoken to an employee of Allstate since the claims adjuster was on my property in front of me.

This is a carefully orchestrated fraud here. There is simply no way this is accidental. Every one of the myriad of phone numbers they have to reach me have voice mail and call history logging on the accounts. I mean they have just plain *never* even called, not even once.

All I can tell any of you reading this is to be sure you dump Allstate before you learn your lesson too. My roof (the one they claimed was undamaged) continues to pour in water even in the lightest rain causing sheet rock to fall in through the ceiling. My out of pocket expenses were almost $9k for the repairs to heating equipment and they never came forward to do any mold abatement work either so the long term effects of all of this are still to be determined.

I was offered a few hundred dollars for paint and sheet rock repairs without any remedy for the actual fix for the problems.

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So I’ve been looking into banking alternatives since my current bank is a company that I really don’t want to support any longer. This has run me straight into a wall that honestly I was surprised to find was so common.

I’m looking into credit unions and alternative online banking solutions and have found, at least so far, they all fail to deliver on the following, somewhat basic facilities. Mind you, many that I have looked into are far from small operations.

Passwords

I have been just plain stunned at how bad the password policies are, after checking through about six different online banking alternatives. The worst one of all was a 4 digit PIN, numeric only for access to online banking! Most are 8 chars, but alpha-numeric only, no special characters at all…this is just plain INSANE.

Online banking is such a huge target, anyone providing this service should provide for at LEAST 12+ characters, accepting any printing character a keyboard can produce. Please, a 4 digi numeric PIN? This could be cracked in a disturbingly short amount of time with a computer 15 years old.

Two-factor authentication as an option. Really…this is not hard to do. There are completely free HOTP compatible two-factor tokens all over the place. Why oh why haven’t banks just freely adopted two-factor token auth by now? I even protect my email access this way, yet my bank account is far more exposed.

One Time Use Credit Card Numbers

So, in a single year I was frauded three times due to making purchases through vendors that use the small merchant bank transaction systems. Even though I wasn’t charged for the problem by my bank, I had to go through a security audit process to file the claim and then change my CC number across about a dozen or more established accounts that I have…THREE TIMES in a single year.

My current big evil bank has a disposable card system whereby for each online transaction I make, I generate a new CC number specific to that purchase. This has options for the max limit of that number (which I set to the next even $5 amount vs the total) and an expiration date (which I set to 60 days). This means there is a 60 day window for fraud exposure, with a maximum potential yield of the difference between my transaction and the next higher $5 increment.

These one-time CC numbers also mean that I can sign up for nasty services that require annual renewals and do so automatically without my consent and they simply can’t get to my account beyond the initial transaction. This allows me to opt-out from companies that will make it nearly impossible to cancel. They simply have no valid information for my account unless I choose to give it to them for the next year of service.

These things are not expensive to implement, nor for a customer to understand, yet here I am, struggling to find anyone who has. If you apply all of the above the potential for fraud is dropped dramatically. I’ve spent a couple years of active online transactions using the disposable CC numbers without a single fraud issue. This has saved me a lot of hours of aggravation and I can’t even imagine the cost overhead to my provider that has been saved.

Get with the program banks!

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Some lessons learned from Allstate Insurance, just a warning to any friends who have a policy with them for homeowners.

They have declined to cover what is close to a $10k bill to replace a water heater and furnace that were damaged by water when my sump pump wasn’t running due to the power outage we had. The water killed the electronics in both and I was ordered by the gas company to never use them again…after having had the fire department here for a gas leak and CO alarm when I re-lit the pilot.

Mind you, nothing unusual was going on, just normal water accumulation and once power restored after four days, the pump pumped out 8″ of water in the basement in only 30 minutes. This wasn’t flooding or runoff, this was just normal accumulation that happens any time it rains here.

It turns out that they have a hidden loophole they don’t inform their customers about. For a pittance of $20-$50 annually they would have covered up to $10k in damage from the sump issue. Trouble is, they don’t tell anyone about this. So for not paying $140 in total policy increases they are trying to make me eat $10k in repairs.

With a roof leak that was caused by the storm, they finally arrived today to do an evaluation and ruled that there was no damage. I have a ceiling that is constantly leaking now and all they are paying for is paint and sheetrock. If I just replace that, it will just leak right through in a week or so anyway. Of course, having to eat the furnace repair, leaves me with pretty much nothing to fix the roof. Fun.

They are completely useless and I recommend highly that if you have a homeowner’s policy with Allstate that you dump them for anyone else as soon as possible, before you too find out how little they will do for you.

** UPDATE

16 SEP 2011

Allstate finally pays out… a whopping $751. They still deny the claim on the $8500 repairs for the furnace and water heater entirely. This check is for the roof damage that caused a permanent leak, where a ceiling is falling inside.

$751 isn’t even enough to pay for the materials to do this repair myself, it would be a few grand easily to have this properly repaired.

I have filed for a review, but it looks like I would have to sue them to get them to make good at this point. We’ll see.

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