Homeowners Depreciation Class Action Settlement

Several insurance companies have agreed to a settlement that would provide compensation to holders of some commercial property and residential homeowners insurance policies whose nonmaterial depreciation was improperly deducted.

The Class consists of all policyholders under any residential, manufactured home, condo, dwelling or rental property homeowners insurance policy issued by LM Insurance Corp., Liberty Insurance Corp., Liberty Mutual Fire Insurance Co., and Safeco Insurance Company of America who made a structural loss claim for property in Tennessee or Mississippi during the applicable Class Periods that was a covered loss. 

Also included is any policyholder under any commercial property insurance policy issued by Ohio Security Insurance Co. who made a structural loss claim for property in Tennessee, Mississippi, or Ohio during the applicable Class Periods that was a covered loss that resulted in an actual cash value payment from which nonmaterial depreciation was withheld, or that would have resulted in such a payment but for the nonmaterial depreciation withholding causing the loss to drop below the deductible.

There are a few exceptions; details can be found on Question No. 7 on the settlement website’s FAQ page.

The applicable Class Periods are:

• For Tennessee LM policyholders: structural loss claims with dates of loss on or after May 31, 2018
• For Tennessee Liberty, Liberty Fire and Safeco policyholders: structural loss claims with dates of loss on or after Oct. 17, 2018 
• For Tennessee Ohio Security policyholders: structural loss claims with dates of loss on or after March 2, 2018
• For Mississippi policyholders of LM, Liberty, Liberty Fire, and Safeco: structural loss claims with dates of loss on or after Oct. 17, 2016 
• For Mississippi policyholders of Ohio Security: structural loss claims with dates of loss on or after March 2, 2017
• For Ohio policyholders of Ohio Security: structural loss claims with dates of loss on or after March 24, 2018

The class action lawsuit claimed the companies improperly deducted depreciation attributed to costs of labor and other nonmaterial items while adjusting homeowners insurance claims in Tennessee and Mississippi and commercial property damage claims in Tennessee, Mississippi, and Ohio.

The companies say they have acted appropriately and deny all allegations of wrongdoing.

As part of the settlement agreement, the insurance companies will pay Class Members filing valid claims as follows:

• For Class Members to whom all nonmaterial depreciation has not been paid: 100 percent of the estimated nonmaterial depreciation withheld and not later paid, plus 5 percent interest on that amount from the last actual cash payment to the date the settlement received preliminary approval
• For Class Members to whom all nonmaterial depreciation was withheld and later paid: 5 percent interest on the estimated nonmaterial depreciation initially withheld, from the date of the last actual cash value payment from which nonmaterial depreciation was withheld to the date it was paid.

The deadlines for consumers to object to or exclude themselves from the settlement have passed.

Claim forms must be submitted no later than March 23, 2021.

Who’s Eligible

The Class consists of all policyholders under any residential, manufactured home, condo, dwelling or rental property homeowners insurance policy issued by LM Insurance Corp., Liberty Insurance Corp., Liberty Mutual Fire Insurance Co., and Safeco Insurance Company of America who made a structural loss claim for property in Tennessee or Mississippi during the applicable Class Periods that was a covered loss. 

Also included is any policyholder under any commercial property insurance policy issued by Ohio Security Insurance Co. who made a structural loss claim for property in Tennessee, Mississippi, or Ohio during the applicable Class Periods that was a covered loss that resulted in an actual cash value payment from which nonmaterial depreciation was withheld, or that would have resulted in such a payment but for the nonmaterial depreciation withholding causing the loss to drop below the deductible.

There are a few exceptions; details can be found on Question No. 7 on the settlement website’s FAQ page.

Potential Award

Varies.

• For Class Members to whom all nonmaterial depreciation has not been paid: 100 percent of the estimated nonmaterial depreciation withheld and not later paid, plus 5 percent interest on that amount from the last actual cash payment to the date the settlement received preliminary approval
• For Class Members to whom all nonmaterial depreciation was withheld and later paid: 5 percent interest on the estimated nonmaterial depreciation initially withheld, from the date of the last actual cash value payment from which nonmaterial depreciation was withheld to the date it was paid.

Proof of Purchase

If you sign a claim form as the representative of a deceased or incapacitated Class Member, you must submit written proof that you are their legally authorized representative.

Contractors to whom an insurance claim was properly assigned by a policyholder must submit written proof of the assignment with the filed claim form.

Claim Form

CLICK HERE TO FILE A CLAIM »

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

03/23/2021

Case Name

Martin Holmes, et al. v. LM Insurance Corp., et al., Case No. 3:19-cv-00466 in the U.S. District Court for the Middle District of Tennessee, Nashville Division

Final Hearing

02/05/2021

Settlement Website

HomeownersDepreciationSettlement.com

Claims Administrator

Homeowners Depreciation Settlement
c/o JND Legal Administration
P.O. Box 11050
Seattle, WA 98111
1-833-928-2552
info@homeownersdepreciationsettlement.com

Class Counsel

Erik D. Peterson
MEHR, FAIRBANKS & PETERSON TRIAL LAWYERS PLLC

J. Brandon McWherter
Jonathan L. Bobbit
MCWHERTER SCOTT BOBBITT PLC

T. Joseph Snodgrass
LARSON KING LLP

Defense Counsel

Rodger Eckelberry
Mark A. Johnson
Andrea Wiltrout
BAKER & HOSTETLER LLP

George (“Buck”) T. Lewis
Nicole Berkowitz
BAKER DONELSON

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