State Farm Insurance nonmaterial depreciation class action settlement

Update:

• The court granted this settlement final approval Sept. 28, 2023.

• Let Top Class Actions know when you receive a check in the comments section below or on our Settlements & Payouts Facebook group.

State Farm Fire and Casualty Co. settled a class action lawsuit in Illinois that claimed the company improperly deducted nonmaterial depreciation when adjusting some structural loss insurance claims.

The settlement class includes anyone who had a structural loss claim for property in Illinois on a State Farm policy between May 21, 2013, and April 2017 that included an actual cash value (ACV) payment including non-material depreciation or general contractor overhead and profit depreciation being withheld. Class members were supposed to receive notice of the settlement.

The class action claimed that State Farm improperly deducted non-material depreciation when adjusting some structural loss insurance claims in Illinois.

State Farm is a nationwide insurance company that recently celebrated 100 years in business. State Farm has 19,400 agents and 67,000 employees, according to the settlement website. 

Class members who had the depreciation deducted and did not recover that amount in replacement cost benefits will receive a settlement payment of 100% of the estimated non-material depreciation that was initially deducted from the ACV payment. They will also receive 50% of the estimated general contractor overhead and profit depreciation that was deducted.

Class members who had the depreciation deducted but later recovered the amount through replacement cost benefits will receive a payment equal to simple interest at 4.4% per year on the depreciation and 4.4% per year on 50% of the estimated general contractor overhead and profit depreciation, calculated from the date of the initial ACV payment through the final replacement cost payment. 

If the class member did not receive an ACV payment because the application of estimated non-material or general contractor overhead and profit depreciation caused the calculated ACV number to drop below the deductible, the claimant will receive 100% of the portion of the estimated non-material depreciation and 50% of the portion of the estimated general contractor overhead and profit depreciation that the policyholder did not receive in excess of the deductible plus 4.4% simple interest per year.

If the claim had a date of loss on or after May 21, 2014, but before Sept. 23, 2015, under a policy with a one-year suit limitation clause, or if it was under State Farm policy form number CMP4100 or other policy with a two-year suit limitation clause with a date of loss on or after May 21, 2013, but before Sept. 23, 2014, then the person would receive 47.5% of the amount that would otherwise be calculated in the other sections of the settlement.

The exclusion and objection deadline has passed.

A final fairness hearing in the settlement took place Sept. 28, 2023.

The claim form deadline is Oct. 28, 2023.

Who’s Eligible

Anyone who had a structural loss claim for property in Illinois on a State Farm policy between May 21, 2013, and April 2017 that included an actual cash value (ACV) payment including non-material depreciation or general contractor overhead and profit depreciation being withheld.

Potential Award

Varies

Proof of Purchase

N/A

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

10/28/2023

Case Name

Sproull, et al. v. State Farm Fire & Casualty Co., Case No. 16-L-1341, in the Circuit Court for the 3rd Judicial Circuit of Madison County, Illinois

Final Hearing

09/28/2023

Settlement Website

Sproull-v-StateFarm.com

Claims Administrator

Rust Consulting Inc.
Settlement Administrator – 7928
PO Box 2599
Faribault, MN 55021-9599
833-472-1757

Class Counsel

David T Butsch
Christopher E Roberts
BUTSCH ROBERTS AND ASSOCIATES LLC

Christopher W Byron
Christopher J Petri
BYRON CARLSON PETRI AND KALB LLC

Joseph Snodgrass
SNODGRASS LAW LLC

Defense Counsel

Joseph A Cancila, Jr. 
Jacob L Kahn
RILEY SAFER HOLMES AND CANCILA LLP

Patrick Cloud
HEYL ROYSTER VOELKER AND ALLEN PC