MERRIMACK – Most of Merrimack has probably seen it by now: the kind of blue minivan a soccer mom might drive – except with angry white letters painted across the windows:

“!!!WARNING!!! STATE FARM IS NOT YOUR NEIGHBOR!…HOUSE FIRE OCT 24, 2009 STILL NOT IN!!”

Karen and Michael Gagnon, of 52 Naticook Road, are tangled in a bitter dispute with their insurance company, and they decided to go public with their frustration.

The couple also launched a blog filled with stories about their experience with State Farm Insurance and placed a giant sign in their front yard claiming “corrupt claim practices” and “shoddy workmanship.”

“Don’t get burned by State Farm!” a portion of the sign says to the backdrop of red, orange and yellow flames.

The Gagnons accuse State Farm, their insurance company of more than 20 years, of not only nickel-and-diming their claim, but also refusing to fix portions of the house that are not structurally sound.

State Farm spokesman Doug Nadeau declined to comment specifically on the case until the company has permission from the Gagnons to speak publicly.

Company practice is to not discuss disputes or any other customer issues with the media unless the policyholder approves, and the Gagnons had not done so as of Friday afternoon, Nadeau said.

But Nadeau and a State Farm claims manager, Scott Gross, reviewed for The Telegraph how the company generally handles fire-damage claims and added that most customers are happy with the results of the process.

State Farm tries to rebuild a home beyond what local and state codes dictate to keep policyholders satisfied, they said.

But the Gagnons say they are more than unsatisfied with State Farm’s handling of their claim. And their public messages expressing that dissatisfaction have certainly attracted attention.

The roughly 8- by 8-foot sign caught the eye of Merrimack Police Chief Michael Milligan on his way to church July 4, he said.

“It certainly grabbed my attention,” he said.

But the sign didn’t appear to break any laws – there were no threats and it appeared to be sitting squarely on the Gagnons’ property, he said.

“An individual certainly has the right to express themselves,” Milligan said.

The blog, launched June 29 at statefarmfraud.wordpress. com, has prompted comments of support from friends, acquaintances and strangers who have seen the van around town.

The house caught fire the afternoon of Oct. 24. The fire began in the chimney, and fire damage was contained mostly to the attic, although portions of the master bedroom wall and the home’s exterior were charred. The family was home at the time, but escaped without injury. The house was declared uninhabitable.

The Gagnons are temporarily living in a rental home in Merrimack with their 10-year-old son, Adam, and Karen’s 23-year-old daughter, Kayleigh, who recently graduated from the University of New Hampshire.

Michael Gagnon, 40, owns a landscaping business. Karen, 42, is a certified public accountant who is on long-term disability leave.

The cause of the fire is unclear. Merrimack Fire Chief Michael Currier could not be reached for comment. Karen Gagnon said the cause is undetermined.

Gagnon said State Farm is only willing to honor the estimate from the contractor it recommended for the job, even though that estimate is only 35 percent of what her contractor said the project will costs.

The two sides have very different takes on the extent of repairs needed to return the home to its previous condition. An engineering firm hired by State Farm, well-known EFI Global, filed a report this spring claiming that most of the roof rafters escaped heat or fire damage. The engineering firm the Gagnons hired on their own dime to dispute those claims, Pennsylvania-based BE Structural, filed a report last month saying the entire roof needs to be torn down and replaced because it is structurally unsound.

The Gagnons also want State Farm to cover full replacements of the home’s drywall, duct work and electrical system due to water damage they fear could lead to mold and smoke damage. The insurance company is only replacing a portion of each.

While not directly discussing the Gagnons’ case, Gross and Nadeau of State Farm outlined how the company handles damage claims from fires.

After helping a policyholder through the initial stage of recovery immediately after a fire, State Farm prepares cost estimates for repairing the damaged structure and property items, Gross said. An estimate is also prepared for the cost of temporary housing.

The rebuilding of a home can take several weeks or months, Gross said. The policyholder can choose a contractor, or State Farm can recommend one, he said. Throughout the process, State Farm will work with a municipal inspector to ensure the new elements of the structure meet local and state codes, Gross said.

If the policyholder and State Farm disagree on the cost of replacing an item, three appraisals are conducted, and the two sides settle for the “best” estimate, Gross and Nadeau said.

Occasionally, but not always, they said, the two sides differ on whether something in the structure should be repaired. If that happens, State Farm consults with an outside engineer to decide if the work is needed, they said.

“There is not always a lot of discretion about what we can do,” Gross said. “There’s the policy, but also there’s the law of New Hampshire and the local municipalities.”

But State Farm always aims to rebuild at a standard above what local and state code demands, Gross said.

If customers are unhappy with the results of a claim process, they can pursue the matter with the state Insurance Department, Nadeau said.

“That is welcome,” Nadeau said. “We want to make sure the policyholder is being treated fairly.”

Although the two parties are at a standstill right now, Karen Gagnon said she’s not planning to give up the fight and will file a lawsuit against State Farm.

“It’s not just about a wall anymore. It’s not about a cabinet,” she said. “It’s about putting people in unsafe conditions.”

Ashley Smith can be reached at 594-6446 or asmith@nashuatelegraph.com.