A Washington landlord claims State Farm shuffled his water damage claim through seven different adjusters over eight months, leaving his rental property unrestored.
Steven Smith filed suit against State Farm Fire & Casualty Company in federal court on February 4, 2026, accusing the insurer of mishandling what began as a straightforward water damage claim. The case, now pending in the Eastern District of Washington, paints a picture of bureaucratic dysfunction that insurance claims professionals may find uncomfortably familiar.
The trouble started in March 2025, when a clogged toilet caused significant water damage to Smith’s rental property in Spokane Valley. He reported the loss immediately. State Farm assigned a claim specialist and, according to court filings, initially declined to cover the cost of unclogging the plumbing system. The insurer’s stated reason was that “the plumbing system was clogged and the toilet had a faulty flapper.” Smith disputes this, maintaining the toilet had no such defect…