Allstate Arizona Property Insurance Depreciation Settlement

Customers who owned or insured a structure in Arizona with Allstate Vehicle and Property Insurance Co. or its affiliates and received a payment for structural damage between April 25, 2017, and Oct. 1, 2026, may be eligible to claim a cash payment from a class action settlement.

Allstate agreed to settle a class action lawsuit alleging it improperly deducted nonmaterial depreciation from certain property insurance claims in Arizona.

Who can file a claim?

Class members must meet all of the following criteria:

• They were insured under a property insurance policy issued by any of the following: Allstate Vehicle and Property Insurance Co., Allstate Insurance Co., Esurance Property and Casualty Insurance Co., Allstate Indemnity Co., Allstate Property and Casualty Insurance Co., Encompass Insurance Co. of America, Encompass Property and Casualty Co., Encompass Indemnity Co. or North Light Specialty Insurance Co.
• They made a claim for structural damage to property located in Arizona during the class period, which is from April 25, 2017, through Oct. 1, 2026.
• Allstate issued a payment for their claim based on an Xactimate estimate.
• The payment they received included a deduction for nonmaterial depreciation from the actual cash value payment.

How much are settlement payments?

The settlement provides two main categories of payments:

• Class members who have not been paid all nonmaterial depreciation: These class members can submit a claim to receive 50% of the net estimated nonmaterial depreciation that the company withheld from the ACV payment and not subsequently paid plus simple interest at 10% per year from the date of the initial ACV payment through the effective date of the settlement.
• Class members who recovered all outstanding depreciation through the claim process: These class members can submit a claim to receive a one-time payment ranging from $10 to $360, depending on the amount of nonmaterial depreciation the company withheld.

How to claim an Allstate settlement payment

To receive a payment, class members must submit an online claim form or print and complete the PDF claim form and mail it to the settlement administrator. Class members who had more than one covered loss during the class period must submit a separate claim form for each loss.

Settlement administrator's mailing address: Allstate Hernandez Depreciation Settlement, Settlement Administrator, 1650 Arch St. Suite 2210, Philadelphia, PA 19103

The deadline to file a claim is Jan. 29, 2027.

Required claim information and proof

• Claimants must provide information about their Allstate claim, including insured name, address of the insured premises, date of loss, policy number and claim number.
• Those who are submitting as a legally authorized representative, such as for a deceased or incapacitated policyholder, must provide supporting documentation showing their authority. Contractors with an assignment must provide a copy of the assignment agreement.
• Class members using the online claim form must provide the ID and confirmation code they received with their class notice. Class members must provide the ID to submit a claim by mail.

Payout options

• Paper check mailed to the address provided

Settlement fund breakdown

The settlement fund includes:

• Settlement administration costs: To be determined
• Attorneys' fees and costs: Up to $870,000
• Service award to the representative plaintiff: Up to $7,500
• Payments to eligible claimants: Based on the number of valid claims filed

Important dates

• Deadline to opt out: Nov. 16, 2026
• Final approval hearing: Dec. 15, 2026
• Deadline to file a claim: Jan. 29, 2027

When is the Allstate settlement payout date?

The settlement administrator will mail payments to approved claimants after the court grants final approval of the settlement and any appeals are resolved.

Why did this class action settlement happen?

The plaintiffs alleged Allstate improperly deducted nonmaterial depreciation when adjusting certain property insurance claims in Arizona.

Allstate denied any wrongdoing but agreed to settle to avoid the costs and uncertainty of litigation.

Sources

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