State Farm has agreed to a class action lawsuit settlement to resolve claims it deducted non-material depreciation from Missouri structural insurance policyholder claims.
The settlement covers Missouri policyholders insured under a State Farm structural damage policy who filed a structural insurance claim for damages on or after June 5, 2012, and received an actual cash value (ACV) payment that included deductions for non-material depreciation or general contractor overhead and profit. It also covers policyholders who would have received an ACV payment but did not because those depreciation deductions reduced the ACV amount below the applicable deductible.
The class period for the settlement is June 5, 2012, to approximately October 2017.
State Farm is an insurance company that offers a variety of insurance products, including home insurance. According to a class action lawsuit resolved by this settlement, State Farm wrongfully deducted non-material depreciation from Missouri structural insurance policyholder claims.
State Farm has not admitted any wrongdoing but agreed to pay an undisclosed sum to resolve these allegations.
Under the terms of the State Farm settlement, class members can receive a cash payment based on the depreciation deducted from their structural insurance claim.
Class members who received an ACV payment but did not recover deducted depreciation through replacement cost benefits may receive 90% of the non-material depreciation and 50% of the general contractor overhead and profit depreciation that were deducted, plus 8.9% simple interest on those amounts.
Class members who received an ACV payment and later recovered the deducted amounts through replacement cost benefits may receive 8.9% simple interest on 90% of the non-material depreciation and on 50% of the general contractor overhead and profit depreciation.
Class members who did not receive an ACV payment because depreciation deductions reduced the ACV below the deductible may receive 90% of the non-material depreciation and 50% of the general contractor overhead and profit depreciation that were not paid, to the extent those amounts exceed the deductible, plus 8.9% simple interest.
The deadline for exclusion and objection is Jan. 30, 2026.
The final approval hearing for the State Farm settlement is scheduled for March 3, 2026.
To receive a settlement payment, class members must submit a valid claim form by April 2, 2026.
Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.