State Farm $25M Structural Damage Class Action Settlement

Individuals who owned property in Missouri that State Farm Fire and Casualty Co. insured by and who 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. agreed to pay $25 million to settle a class action lawsuit alleging it improperly deducted labor and other nonmaterial costs, referred to as “nonmaterial depreciation," from actual cash value payments on certain structural damage claims in Missouri.

Who can file a State Farm settlement claim?

Class members must meet the following criteria:

• State Farm Fire and Casualty insured them under a structural damage policy 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 payment on their claim in which State Farm deducted estimated nonmaterial depreciation or estimated general contractor overhead and profit depreciation.
• OR they would have received an actual cash value payment but State Farm's deduction of the depreciations caused the calculated ACV figure to drop below their deductible.

Who is excluded from the class?

The settlement class excludes certain claims:

• 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 exhausted the applicable insurance limits

How much is the settlement payout?

The settlement administrator will determine payment amounts by the specifics of the State Farm claim and how the company applied and recovered depreciation:

• Policyholders who received an ACV payment with nonmaterial or GCOP depreciation deducted and did not recover all depreciation through RCBs can submit a claim to receive a cash payment of 90% of the nonmaterial depreciation that State Farm initially deducted and did not recover plus 50% of the GCOP depreciation, if any, it did not recover. The payment amount will also include simple interest at 8.9% per year from Aug. 6, 2021, through the settlement effective date.
• Policyholders who received an ACV payment with nonmaterial or GCOP depreciation deducted and recovered all depreciation through RCBs at a later date can submit a claim to receive a cash payment of simple interest at 8.9% per year on 90% of the no-material depreciation and 50% of the GCOP depreciation, if any, that State Farm initially applied but later recovered. The settlement administrator will calculate interest from the date of the initial ACV payment through the final RCB payment.
• Policyholders who did not receive an ACV payment because the deduction of depreciation caused the ACV to drop below the deductible can submit a claim to receive a cash payment of 90% of the portion of nonmaterial depreciation and 50% of the portion of GCOP depreciation, if any, that they did not receive in excess of the deductible. The payment amount will also include simple interest at 8.9% per year from Aug. 6, 2021, through the 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. They can upload the claim form online or mail it to the settlement administrator. Each covered loss requires a separate claim form.

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

Class members must upload the claim form online or postmark it by April 2, 2026.

Required claim information

• Class members must include the policy number, claim number, date of loss and address of the insured property on the claim form.
• Those 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

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

When is the State Farm settlement payout date?

The settlement administrator will issue payments to approved claimants after it completes claim processing and the court grants final approval of the settlement.

Why did this class action settlement happen?

This class action lawsuit alleged State Farm improperly deducted nonmaterial depreciation, such as labor and other nonmaterial costs, from actual value payments 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