State Farm Missouri Class Action, $25M Settlement for Underpaid Structural Damage Claims Vexatious Refusal Claims 2026

If you are a Missouri homeowner whose property damage claim was underpaid by State Farm, you may be entitled to a cash payment. As of January 30, 2026, a $25 million class action settlement is open for claims. This agreement resolves allegations that State Farm improperly deducted labor and other non-material costs from insurance payouts, leaving policyholders with less than they were owed.

State Farm Missouri Settlement: The Main Answer

What Happened in the State Farm Missouri Case?

The lawsuit, Pregon v. State Farm Fire and Casualty Co. (Case No. 24SL-CC03130), alleged that State Farm breached its contracts with Missouri policyholders. The core issue involves non-material depreciation. When policyholders filed claims for structural damage—such as a damaged roof from hail or foundation issues—State Farm calculated the “Actual Cash Value” (ACV) of the loss.

Plaintiffs argued that State Farm systematically deducted the cost of labor from these payments. Under Missouri law, labor does not lose value over time (depreciate) like a physical shingle or piece of wood does. By deducting labor costs, State Farm allegedly underpaid thousands of valid insurance claims across the state.

Who is Eligible for Compensation?

You are a class member and eligible for a payout if you meet the following criteria:

• You were insured under a State Farm structural damage policy for property located in Missouri.
• You made a claim for residential or business property damage with a date of loss on or after June 5, 2012.
• You received an ACV payment where State Farm deducted non-material depreciation (labor) or General Contractor Overhead and Profit (GCOP).
• Alternatively, you are eligible if your claim was denied simply because these deductions pushed the total value below your deductible.

What are the Settlement Terms and Payouts?

State Farm has agreed to a $25 million fund to resolve these claims. The amount each person receives depends on their specific claim history:

• For those who never recovered depreciation: You can receive 90% of the non-material depreciation initially deducted, plus 50% of the GCOP depreciation, and 8.9% simple interest.
• For those who later recovered depreciation: If you eventually received your full replacement cost, you are still eligible for 8.9% simple interest on the time you were deprived of those funds.
• For those below the deductible: You can claim 90% of the withheld depreciation that exceeded your deductible.

What is the Deadline and How to File?

To receive your money, you must act before the upcoming spring deadline. As of January 30, 2026, the key dates are:

• Exclusion/Objection Deadline: January 30, 2026 (Today).
• Final Approval Hearing: March 3, 2026.
• Claim Form Deadline: April 2, 2026.

You must submit a valid Claim Form online at Pregon-v-StateFarm.com or mail it to the Settlement Administrator (Pregon v. State Farm Settlement, c/o JND Legal Administration, PO Box 91215, Seattle, WA 98111).

What You Must Know About Missouri Insurance Law

Missouri Revised Statutes and Vexatious Refusal

This settlement is grounded in Missouri’s strict insurance protections. Under Missouri Revised Statutes § 375.420, insurers can be held liable for “vexatious refusal to pay” if they deny or underpay claims without reasonable cause.

While this class action focuses on the breach of contract regarding depreciation, the settlement provides a streamlined way for homeowners to get paid without having to prove “bad faith” in an individual trial, which can be costly and time-consuming.

Acceptance Means Waiving Future Rights

Accepting a payment from this $25 million fund means you are granting a “release.” This is a legal term meaning you cannot sue State Farm again for the same labor depreciation issue related to that specific claim.

However, this does not waive your right to file future, unrelated claims for new damage to your home. If your structural damage resulted in losses far exceeding the settlement’s 90% offer, you had until January 30, 2026, to opt out and pursue an individual lawsuit.

Common Reasons for Claim Denial

Even if you are a class member, your claim could be rejected by the administrator if:

• Missing Policy Info: You fail to provide your policy or claim number.
• Excluded Forms: Your policy included specific endorsement forms (like FE-3650) that explicitly allow for labor depreciation.
• Exhausted Limits: Your original payout already reached the maximum “limit of liability” on your policy.

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What to Do Next: Your Action Plan

Step 1: Gather Your Documentation

Search your records for any structural damage claims filed with State Farm since June 2012. You will need your policy number, claim number, and the address of the property. If you no longer have the paperwork, you can contact your State Farm agent or the settlement administrator at 1-877-206-2313 to see if you are in their database.

Step 2: Review Your ACV Payouts

Look at the “Summary of Loss” or “Estimate” provided by the State Farm adjuster. Check for line items that say “Depreciation” and see if they applied to labor costs. If they did, you are likely entitled to the 8.9% interest and the 90% reimbursement offered in this 2026 settlement.

Step 3: File the Official Claim Form

Visit the official settlement website and complete the form before April 2, 2026. Do not wait for the final hearing in March. Because this is a “common fund” settlement, those who submit early and with complete documentation are processed first once the court grants final approval.

FAQs About the State Farm Missouri Settlement

What is the State Farm Missouri structural insurance settlement about?

It resolves claims that State Farm improperly lowered payouts for home repairs by deducting depreciation from labor costs. Missouri law generally prohibits depreciating labor, as only physical materials lose value over time.

How much money can I get from the State Farm Missouri settlement?

Most eligible members will receive 90% of the labor depreciation withheld from their claim, plus 8.9% simple interest. For some, this could result in hundreds or even thousands of dollars depending on the size of the original repair estimate.

Who is eligible to file a claim in the State Farm Missouri class action?

Any Missouri policyholder who filed a structural damage claim with State Farm between June 5, 2012, and October 2017 (for some forms) or later, and had labor depreciation deducted from their ACV payment.

What is the deadline to file a State Farm Missouri settlement claim?

The deadline to submit or postmark your claim form is April 2, 2026. If you miss this date, you will not receive a payment even if you are eligible.

What proof do I need to submit a State Farm structural damage claim?

You generally need your policy number, claim number, and date of loss. You must also sign a statement under penalty of perjury that the information provided is accurate to the best of your knowledge.

Last Updated: January 30, 2026

Disclaimer: This article is for informational purposes and does not constitute legal advice. Check the official settlement website for the most current court updates.

Claim your payout today: Visit Pregon-v-StateFarm.com before April 2, 2026, to ensure you receive your portion of the $25 million fund.

Stay informed, stay protected. — AllAboutLawyer.com

About the Author

Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
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