American Family Insurance class action settlement for Arizona properties

American Family Insurance has agreed to a class action lawsuit settlement to resolve claims it withheld nonmaterial depreciation from certain Arizona property insurance claims.

The settlement benefits individuals who were issued property insurance policies in Arizona by American Family, made a structural loss claim under the policy, had an Xactimate estimate used in the determination of the actual cash value (ACV) payment and had an ACV payment from which nonmaterial depreciation was withheld between June 24, 2018, and Nov. 4, 2022.

Plaintiffs in the class action lawsuit accused American Family of withholding nonmaterial depreciation from ACV payments on structural loss claims. This practice allegedly violated Arizona law.

American Family Insurance is a property and casualty insurance company that offers a range of insurance products, including home, auto, life and business insurance.

American Family has not admitted any wrongdoing but agreed to pay an undisclosed sum to resolve the class action lawsuit.

Under the American Family Insurance settlement, class members may receive a cash payment based on the amount of nonmaterial depreciation withheld from their ACV payment.

• For claims made between Nov. 2, 2019, and Nov. 4, 2022, class members can receive 100% of the withheld nonmaterial depreciation that was not later paid.
• For claims made between June 24, 2018, and Nov. 1, 2019, or for claims made under a Homesite policy, class members can receive 50% of the withheld nonmaterial depreciation that was not later paid.

Class members who eventually got paid all of their nonmaterial depreciation can still receive a smaller payment based on how much was originally withheld from their ACV payment:

• $10 for withheld amounts between $1 and $5,000.99
• $20 for withheld amounts between $5,001 and $10,000.99
• $40 for withheld amounts between $10,001 and $20,000.99
• $80 for withheld amounts between $20,001 and $40,000.99
• $120 for withheld amounts between $40,001 and $60,000.99
• $160 for withheld amounts between $60,001 and $80,000
• $200 for withheld amounts over $80,000

The deadline for exclusion and objection is Sept. 17, 2025.

The final approval hearing for the American Family Insurance settlement is scheduled for Oct. 17, 2025.

To receive settlement benefits, class members must submit a valid claim form by Dec. 1, 2025.

Who’s Eligible

The settlement benefits individuals who:

• Were issued property insurance policies in Arizona by American Family between June 24, 2018, and Nov. 4, 2022
  
• Made a structural loss claim under Coverage A or Coverage B of the policy
  
• Had an Xactimate estimate used in the determination of the actual cash value payment
  
• Were issued an ACV payment with nonmaterial depreciation withheld, or would have been issued an ACV payment, but the withholding of nonmaterial depreciation caused the loss amount to fall below the deductible.
  

Potential Award

Varies

Proof of Purchase

Claim number, policy number, date of loss, address of loss, phone number, email address, signature and date.

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

12/01/2025

Case Name

Bradley Martin, et al. v. American Family Mutual Insurance Co. S.I., Case No. 2025-LA-0000021, in the Tenth Judicial Circuit Court in Peoria County, Illinois

Final Hearing

10/17/2025

Settlement Website

ZubiaDepreciationSettlement.com

Claims Administrator

Zubia v. American Family Administrator
P.O. Box 2734
Portland, OR 97208-2734
888-894-9318

Class Counsel

Erik Peterson
ERIK PETERSON LAW OFFICES PSC

Brandon McWherter
MCWHERTER SCOTT BOBBITT PLC

T. Joseph Snodgrass
SNODGRASS LAW LLC

Robert Hanauer
HANAUER LAW OFFICE LLC

Defense Counsel

Mark L. Hanover
Kristine M. Schanbacher
Emily C. Eggmann
DENTONS US LLP