State Auto underpaid insurance claims class action settlement

Update:

• The deadline to file a claim is now Dec. 22, 2022.

State Auto Property agreed to a class action lawsuit settlement to resolve claims it underpaid structural insurance claims in certain states.

The settlement benefits two state classes. The first class is made up of individuals in Mississippi whose homes were insured by State Auto Property and Casualty Co., State Automobile Mutual Insurance Co., State Auto Insurance Co. of Ohio, Milbank Insurance Co. or Meridian Security Insurance Co. and who made a structural damage claim for their property between April 2, 2017, and Feb. 16, 2021, that resulted in an actual cash value less nonmaterial depreciation which caused the payment to be under the applicable deductible.

The second class is made up of individuals in Illinois, Kentucky, Ohio and Tennessee whose homes were insured by State Auto Property and Casualty Co., State Automobile Mutual Insurance Co., State Auto Insurance Co. of Ohio, Milbank Insurance Co. or Meridian Security Insurance Co. and who made a structural damage claim for their property that resulted in an actual cash value less nonmaterial depreciation that caused the payment to be under the applicable deductible under an insurance policy with a one-year suit limitation between April 2, 2019, and Feb. 16, 2021, or an insurance policy with a two-year suit limitation between April 2, 2018, and Feb. 16, 2021.

State Auto, now part of Liberty Mutual, is an insurance company that offers policies for vehicles, homes, renters, business, farms and more.

According to the State Auto class action lawsuit, the company wrongfully deducted depreciation from actual cash value payments when paying out structural claims in certain states.

The class action lawsuit claims that State Auto caused some policyholders to not meet their deductibles by deducting nonmaterial depreciation of labor  from actual cash value payments. Plaintiffs argue State Auto should not have withheld labor depreciation and should have only withheld depreciation of materials and other allowed costs.

The defendants haven’t admitted any wrongdoing but agreed to a class action settlement to resolve these allegations. The exact settlement amount isn’t available in court documents.

Under the terms of the State Auto Property underpaid insurance claims lawsuit settlement, class members can receive a settlement payment based on whether their actual cash value payment deductions for nonmaterial depreciation were repaid. 

Class members who did not receive a subsequent payment for nonmaterial depreciation will receive a settlement payment equal to 105% of the depreciation deducted from their actual cash value payment.

Class members whose nonmaterial depreciation was subsequently repaid can receive a settlement payment of between $25 and $500, depending on the amount of release depreciation.

Class members from Illinois will receive 80% of the same benefits listed above.

The deadline for exclusion and objection is Sept. 26, 2022.

The final approval hearing for the State Auto Property underpaid insurance claims lawsuit settlement is scheduled for Oct. 24, 2022.

In order to receive settlement benefits, class members must submit a valid claim form by Dec. 22, 2022.

Who’s Eligible

The first class is made up of individuals in Mississippi whose homes were insured by State Auto Property and Casualty Co., State Automobile Mutual Insurance Co., State Auto Insurance Co. of Ohio, Milbank Insurance Co. or Meridian Security Insurance Co. and who made a structural damage claim for their property between April 2, 2017, and Feb. 16, 2021, that resulted in an actual cash value less nonmaterial depreciation which caused the payment to be under the applicable deductible.

The second class is made up of individuals in Illinois, Kentucky, Ohio and Tennessee whose homes were insured by State Auto Property and Casualty Co., State Automobile Mutual Insurance Co., State Auto Insurance Co. of Ohio, Milbank Insurance Co. or Meridian Security Insurance Co. and who made a structural damage claim for their property that resulted in an actual cash value less nonmaterial depreciation that caused the payment to be under the applicable deductible under an insurance policy with a one-year suit limitation between April 2, 2019, and Feb. 16, 2021, or an insurance policy with a two-year suit limitation between April 2, 2018, and Feb. 16, 2021.

Potential Award

Varies

Proof of Purchase

Proof of purchase not applicable

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

12/22/2022

Case Name

Gupta, et al. v. Aeries Software Inc., Case No. 8:20-cv-00995-FMO-ADS in the U.S. District Court for the Central District of California

Final Hearing

10/24/2022

Settlement Website

CedarViewDepreciationSettlement.com

Claims Administrator

Cedarview v. State Auto
Settlement Administrator
P.O. Box 6490
Portland, OR 97228-6490

Class Counsel

Erik D Peterson
ERIK PETERSON LAW OFFICES PSC

T Joseph Snodgrass
SNODGRASS LAW LLC

James Brandon McWherter
MCWHERTER SCOTT BOBBITT PLC

Defense Counsel

Mark L Hanover
Kristine M Schanbacher
DENTONS US LLP

Dale Gibson Russell
Blake Damon Smith
COPELAND COOK TAYLOR & BUSH