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Missouri residents who had a property insurance policy with American Family and experienced a structural loss between April 28, 2017, and Nov. 4, 2022, may qualify to claim a cash payment from a class action settlement.
American Family Mutual Insurance Co. S.I. agreed to settle a class action lawsuit alleging it improperly deducted nonmaterial depreciation, such as labor, overhead and profit, from certain structural loss insurance claims in Missouri. The plaintiffs argued their policies did not permit this.
Who can file an American Family Insurance claim?
Class members must meet all of the following criteria:
- American Family issued them a property insurance policy in Missouri between April 28, 2017, and Nov. 4, 2022.
- They made a structural loss claim under Coverage A or Coverage B of their policy.
- American Family used an Xactimate estimate when determining their Actual Cash Value payment.
- They were either:
- Issued an ACV payment from which nonmaterial depreciation was withheld or
- Would have been issued an ACV payment but the withholding of nonmaterial depreciation caused the loss to drop below their deductible.
How much is the Missouri property insurance payout?
The amount class members can claim depends on whether nonmaterial depreciation was withheld from their ACV payment and whether it was later paid to them.
- If nonmaterial depreciation was withheld from a class member's ACV payment and not subsequently paid, or if withholding it caused their loss to drop below their deductible, they can claim 90% of the withheld amount plus simple interest at 4.75% per year from January 1 of the year the loss was reported through Jan. 1, 2025.
- If all nonmaterial depreciation withheld from a class member's ACV payment was later paid to them, they can claim a flat payment based on the total amount of nonmaterial depreciation:
- $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: $200
How to claim a class action rebate
Class members can file a claim online or download and print a PDF claim form, complete it and mail it to the settlement administrator. The claim deadline is Oct. 10, 2025.
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: Hirsch v. American Family Administrator, P.O. Box 2510, Portland, OR 97208-2510
Proof and documentation required
- All claimants must provide their American Family policy number, American Family claim number and the date of the loss.
- To file an online claim, claimants must log in with the unique ID and PIN from the settlement notice they received.
- Legally authorized representatives (such as for a deceased or incapacitated policyholder) must provide written proof of their authority.
- Contractors must provide the assignment contract.
Payout options
- Paper check
American Family settlement fund breakdown
American Family Mutual Insurance Co. will pay the following costs separately from payments to eligible class members:
- Settlement administration costs: To be determined
- Attorneys’ fees and expenses: Up to $9,437,500
- Service awards to class representatives: Up to $7,500 each (up to $22,500 total)
Important dates
- Exclusion deadline: July 28, 2025
- Final approval hearing: Aug. 26, 2025
- Claim deadline: Oct. 10, 2025
When is the Hirsch et al. v. American Family payout date?
Payments will be mailed to eligible class members approximately 40 days after the court grants final approval of the settlement and any appeals are resolved.
Why did this class action settlement happen?
The class action lawsuit alleged American Family improperly deducted nonmaterial depreciation, such as labor, overhead and profit, from structural loss insurance claims in Missouri. The plaintiffs argued this was not allowed under their policies.
American Family denied any wrongdoing but agreed to settle to avoid the costs and uncertainties of litigation. The court has not decided in favor of either party.
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