American Family Insurance $16.37M Wisconsin Settlement

Consumers whom American Family Insurance issued a property insurance policy in Wisconsin between Nov. 2, 2019, and May 15, 2025, and had a structural loss claim may qualify to claim $10-$200 or 63% of withheld nonmaterial depreciation plus interest from a class action settlement.

American Family Mutual Insurance Co. agreed to pay $16.37 million to resolve a class action lawsuit alleging it improperly deducted nonmaterial depreciation, such as labor, overhead and profit, from certain structural loss claims under Wisconsin property insurance policies.

Who can file an American Family Mutual Insurance claim?

Class members must meet all of the following criteria:

• American Family Mutual Insurance Co. issued them a property insurance policy in Wisconsin between Nov. 2, 2019, and May 15, 2025.
• They made a structural loss claim under Coverage A or Coverage B of the policy.
• American Family used an Xactimate estimate to determine the actual cash value payment.
• American Family withheld nonmaterial depreciation from an ACV payment or would have been issued an ACV payment but withholding nonmaterial depreciation would cause the loss to drop below the deductible.

A "structural loss" refers to physical damage to a home, building, manufactured home, condo, rental dwelling or other structure in Wisconsin covered by a qualifying American Family insurance policy. "Nonmaterial depreciation" means Xactimate software's calculation of depreciation of labor costs, overhead, profit or other nonmaterial items.

Who is excluded from the class?

• Policyholders whose claims arose under policy forms, endorsements or riders that expressly permit nonmaterial depreciation by using the words "depreciation" and "labor"
• Claims related to roof damage paid under a residential American Family Mutual Insurance roof surface payment endorsement where payment was based on a schedule and not by deducting depreciation
• Policyholders who received actual cash value payments that exhausted the insurance limits
• Policyholders whose claims American Family denied or abandoned without an ACV payment for reasons other than the withholding of nonmaterial depreciation causing the loss to drop below the deductible
• Policyholders who did not receive an Xactimate estimate

How much can class members get?

• For class members whom American Family withheld nonmaterial depreciation and did not subsequently pay it, the payment is 63% of the nonmaterial depreciation withheld from the ACV payment (or that would have resulted in an ACV payment but for the withholding) plus simple interest of 4.75% per year from Jan. 1 of the year the loss was reported through Jan. 1, 2025.
• For class members whom American Family paid all nonmaterial depreciation, the payment is a flat amount based on the total nonmaterial depreciation withheld, according to the following schedule:
• $1–$5,000.99: $10
• $5,001–$10,000.99: $20
• $10,001–$20,000.99: $40
• $20,001–$40,000.99: $80
• $40,001–$60,000.99: $120
• $60,001–$80,000.00: $160
• Greater than $80,000.00: $200

How to claim a class action payment

Class members can submit the online claim form or download, print, complete and mail the PDF claim form to the settlement administrator. The claim deadline is Dec. 1, 2025.

Settlement administrator's mailing address: Hall v. American Family Administrator, P.O. Box 2895, Portland, OR 97208-2895

Proof and documentation required to submit a claim

• To file an online claim, class members must log in with the unique ID and PIN from the settlement notice they received.
• All claimants must provide policy and claim numbers, the address of the insured premises and date of loss.
• If the claimant is a legally authorized representative (such as for a deceased or incapacitated policyholder), they must provide documentation supporting their authority
• If the claim was assigned to another party, the claimant must provide a copy of the assignment contract.

Payout options

• Paper check

Settlement fund breakdown

The settlement fund covers:

• Settlement administration costs: To be determined
• Attorneys' fees and expenses: Up to $4,092,112.50
• Service award to representative plaintiff: Up to $7,500
• Taxes: To be determined
• Payments to eligible class members: The remainder of the fund

Important dates

• Deadline for exclusion: Sept. 17, 2025
• Final approval hearing: Oct. 17, 2025
• Deadline to file a claim: Dec. 1, 2025

When is the Hall v. American Family payout date?

The settlement administrator will mail payments approximately 20-50 days after the court grants final approval and resolves any appeals.

Why did this class action settlement happen?

The class action lawsuit alleged American Family improperly deducted nonmaterial depreciation (such as labor and overhead) from certain structural loss insurance claims in Wisconsin. The plaintiff claimed this was not permitted under American Family's policies.

American Family denied wrongdoing but agreed to settle to avoid the cost and uncertainty of litigation.

Sources

1. Class notice
2. Settlement agreement
3. Claim form
4. Settlement FAQ