Allstate Property Insurance Depreciation Settlement

Allstate, an insurance provider, reached a settlement to resolve allegations that it improperly withheld nonmaterial depreciation from property insurance claims. This issue specifically concerns policyholders who filed a structural loss claim for property located in Arizona between April 25, 2017, and October 1, 2026, and whose payment was based on an Xactimate estimate resulting in an actual cash value payment.

The lawsuit claims that Allstate wrongfully withheld this nonmaterial depreciation, an action the plaintiffs allege violates Arizona law. While Allstate has not admitted any wrongdoing, it has agreed to pay an undisclosed amount to settle the class action allegations.

Class members who have not been compensated for the withheld depreciation may receive 50% of the net estimated nonmaterial depreciation, plus 10% annual simple interest. Those who have already received all outstanding depreciation can receive a one-time payment between $10 and $360. To participate, class members must submit a valid claim form by January 29, 2027.