No doubt.
This is the second instance where I've heard that State Farm pulled the "equipment failure" or "poor design" thing. No...this is a first line of defense and is intended to get you to turn away. You'll have to go through legal motions to get them to pay up (and for $300 it's certainly not going to be worth it). This is why I didn't choose State Farm even though they offered comparable rates for my boats because I heard of another such instance on a larger scale (daggerboard ripping through hull). When I had my incident and it suddenly looked like there was going to be a fight, I approached my home owner's insurance about filing a claim to repair/replace my boat...They told me that this would be a bad idea because too many claims on my home owner's insurance would result in me being dropped! I've been paying State Farm for 15 years with one minor auto claim that entire time. That response really dissapointed me. Who is paying who here? They act like THEY are the customer and that I should feel privaledged that they will take my money.