State Farm $25M Structural Damage Class Action Settlement

Individuals who owned property in Missouri that was insured by State Farm Fire and Casualty Co. and made a structural damage claim for a loss between June 5, 2012, and approximately October 2017, may be eligible to submit a claim for a cash payment from a class action settlement.

State Farm Fire and Casualty Co. has agreed to pay $25 million to settle a class action lawsuit alleging that it improperly deducted labor and other non-material costs, referred to as “non-material depreciation," from actual cash value (ACV) payments on certain structural damage claims in Missouri.

Who can file a State Farm settlement claim?

Class members must meet the following criteria:

• They were insured under a structural damage policy issued by State Farm Fire and Casual covering residential or business property in Missouri.
• They made a structural damage claim for a residential or business property located in Missouri with a date of loss on or after June 5, 2012, and before approximately October 2017.
• They received an actual cash value (ACV) payment on their claim where estimated non-material depreciation or estimated general contractor overhead and profit (GCOP) depreciation was deducted.
• Or they would have received an actual cash value (ACV) payment, but the deduction of the depreciations caused the calculated ACV figure to drop below their deductible.

Who is excluded from the class?

Certain claims are excluded from the settlement class:

• Claims under State Farm policy forms, including endorsement form FE-3650, that expressly permit the depreciation of labor within the policy text do not qualify for the settlement.
• Claims where State Farm’s actual cash value payments (ACV) exhausted the applicable insurance limits.

How much is the settlement payout?

Payment amounts will be determined by the specifics of the State Farm claim and how depreciation was applied and recovered:

• Policy holders who received an ACV payment with non-material or GCOP depreciation deducted and did not recover all depreciation through RCBs: Class members can submit a claim to receive a cash payment of 90% of the non-material depreciation that was initially deducted and not recovered, plus 50% of the GCOP depreciation, if any, that was not recovered. Payment amount will also include simple interest at 8.9% per year from Aug. 6, 2021, through the settlement effective date.
• Policy holders who received an ACV payment with non-material or GCOP depreciation deducted and recovered all depreciation through RCBs at a later date: Class members can submit a claim to receive cash payment of simple interest at 8.9% per year on 90% of the non-material depreciation and 50% of the GCOP depreciation, if any, that was initially applied but later recovered. Interest will be calculated from the date of the initial ACV payment through the final RCB payment.
• Policy holders who did not receive an ACV payment because the deduction of depreciation caused the ACV to drop below the deductible: Class member can submit a claim to receive a cash payment of 90% of the portion of non-material depreciation and 50% of the portion of GCOP depreciation, if any, that they did not receive in excess of the deductible. Payment amount will also include simple interest at 8.9% per year from Aug. 6, 2021, through settlement effective date.

How to claim a class action rebate

To claim a settlement payment, class members must print and complete the PDF claim form. The claim form can be uploaded online or mailed to the settlement administrator. A separate claim form is required for each covered loss.

Settlement administrator's mailing address: Pregon v. State Farm Settlement c/o JND Legal Administration PO Box 91215 Seattle, WA 98111

Claim forms must be uploaded online or postmarked by April 2, 2026.

Required claim information

• Policy number, claim number, date of loss and address of insured property must be included on claim form.
• Individuals submitting a claim form on behalf of a deceased class member must state how and when they became the legally authorized representative for the class member and must provide supporting documentation, which may include a court order or a letter of power of attorney.

Payout options

• Paper check mailed to the address provided.

$25 million State Farm settlement fund

The $25,000,000 settlement fund will include:

• Attorneys' fees and expenses: Up to $5,125,000
• Service award to class representative: $7,500
• Payments to approved claimants: Remaining settlement funds

State Farm is paying the costs of administering the settlement separately from the settlement fund.

Important dates

• Deadline to file a claim: April 2, 2026
• Exclusion deadline: Jan. 30, 2026
• Final approval hearing: March 3, 2026

When is the State Farm settlement payout date?

Payments will be issued to approved claimants after the court grants final approval of the settlement and claim processing is completed.

Why did this class action settlement happen?

This class action lawsuit was filed because State Farm allegedly improperly deducted non-material depreciation, such as labor and other non-material costs, from actual value payments (ACV) on structural damage claims in Missouri.

State Farm denies any wrongdoing, but agreed to settle to avoid the expense and uncertainty of further litigation and trial.

Sources

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