State Farm Missouri Property Insurance Lawsuit Settlement (Pregon v. State Farm)
What This Settlement Is About
A class action lawsuit against State Farm Fire and Casualty Co. alleges the company improperly deducted labor and other non-material costs — called “nonmaterial depreciation” — from actual cash value (ACV) payments made to Missouri policyholders on structural damage claims. A proposed settlement has been reached in the case, known as Pregon v. State Farm Fire and Casualty Co., about whether State Farm properly depreciated the estimated costs of labor and other non-material costs needed to replace damaged structures when making ACV payments to Missouri policyholders.
State Farm denies any wrongdoing. Missouri property insurance customers who filed a structural damage claim between June 5, 2012, and approximately October 2017 may be eligible for a cash payment — but must file a claim by April 2, 2026.
Quick Facts
- Case Name: Pregon v. State Farm Fire and Casualty Co., Case No. 24SL-CC03130
- Court: Circuit Court for the Twenty-First Judicial Circuit, St. Louis County, Missouri
- Settlement Amount: $25 million
- Who May Be Eligible: Missouri policyholders with a State Farm structural damage claim between June 5, 2012, and approximately October 2017
- Claim Deadline: April 2, 2026
- Final Approval Hearing: March 3, 2026
- Administrator: JND Legal Administration — www.pregon-v-statefarm.com | 1-877-206-2313
Current Status
The settlement is in the preliminary approval stage. The final approval hearing is scheduled for March 3, 2026. To receive a settlement payment, class members must submit a valid claim form by April 2, 2026. The exclusion deadline of January 30, 2026 has already passed. If the court grants final approval on March 3, the settlement administrator will begin processing claims and issue payments afterward. Check the official settlement website regularly for updates, as deadlines may shift.
What the Lawsuit Alleges
To understand this case, it helps to know how property insurance payouts work. When you file a structural damage claim, your insurer can pay you one of two ways: the actual cash value (ACV) — which is the replacement cost minus depreciation — or the full replacement cost benefit (RCB), which covers the actual cost to repair or rebuild.
The lawsuit centers on how State Farm calculated depreciation. Depreciation typically accounts for wear and tear on physical materials like shingles or siding. The plaintiffs alleged that State Farm went further by also depreciating labor costs — what contractors charge to do the work. Labor doesn’t age or wear out the way materials do, so policyholders argued these deductions were improper and reduced their payouts below what they were owed.
The lawsuit alleges State Farm improperly deducted labor and other nonmaterial costs, referred to as “nonmaterial depreciation,” from actual cash value payments on certain structural damage claims in Missouri. State Farm denies the allegations and contends policyholders received everything they were entitled to under their policies.
Who May Be Eligible
The settlement covers all policyholders insured under a State Farm structural damage policy who made a structural damage claim for property located in Missouri with a date of loss on or after June 5, 2012, and received an actual cash value payment on that claim where either estimated non-material depreciation or estimated general contractor overhead and profit depreciation was deducted — or who would have received an ACV payment but for those deductions causing the calculated ACV to drop below the applicable deductible.
In plain terms, you may qualify if:
- Your property (residential or commercial) was in Missouri
- It was insured under a State Farm structural damage policy
- You filed a damage claim with a date of loss between June 5, 2012 and approximately October 2017
- State Farm deducted nonmaterial depreciation or general contractor overhead and profit (GCOP) depreciation from your ACV payment — or those deductions wiped out your payment entirely by pushing it below your deductible
Settlement Details & How Much You Could Receive
Payment amounts depend on your specific claim situation. There are three scenarios:
Scenario 1 — You received an ACV payment but didn’t fully recover the depreciation through replacement cost benefits: You can claim 90% of the nonmaterial depreciation State Farm deducted and didn’t return, plus 50% of any GCOP depreciation not recovered, plus 8.9% simple annual interest from August 6, 2021 through the settlement effective date.
Scenario 2 — You received an ACV payment and later recovered all the depreciation through replacement cost benefits: You can claim 8.9% simple annual interest on 90% of the nonmaterial depreciation and 50% of the GCOP depreciation, calculated from your initial ACV payment date through your final RCB payment date.
Scenario 3 — You didn’t receive any ACV payment because the depreciation deductions pushed your payout below your deductible: You can claim 90% of the nonmaterial depreciation and 50% of the GCOP depreciation that you did not receive in excess of the deductible, plus 8.9% simple annual interest from August 6, 2021 through the settlement effective date.
How to File a Claim
You must submit a claim form for each covered loss by April 2, 2026. Each loss requires its own separate form.
What you’ll need before you file:
- Policy number
- Claim number
- Date of loss
- Address of the insured property
- Total amount of your ACV payment (if any)
- Total amount of any replacement cost benefit (RCB) payment received
- Total amount of depreciation deducted from each payment
You may upload a signed, scanned copy of a completed claim form to the official website before midnight Central Time on April 2, 2026, or mail a signed and completed claim form, postmarked no later than April 2, 2026, to the settlement administrator.
Mail to: Pregon v. State Farm Settlement c/o JND Legal Administration PO Box 91215 Seattle, WA 98111
Online: www.pregon-v-statefarm.com Phone: 1-877-206-2313 Email: [email protected]
Prior Related Cases
This is not the first time State Farm has faced this type of claim. A nearly identical lawsuit was settled previously covering Missouri policyholders with structural damage claims from an earlier period, and similar cases have been filed in Illinois, Minnesota, and other states over the same nonmaterial depreciation practice. State Farm Fire and Casualty Co. also settled a class action in Illinois claiming the company improperly deducted nonmaterial depreciation when adjusting structural loss insurance claims — indicating this was a widespread practice across multiple states, not limited to Missouri.
Frequently Asked Questions
What is the Pregon v. State Farm lawsuit about?
It’s a class action alleging State Farm improperly reduced property insurance payouts to Missouri policyholders by deducting labor costs — called nonmaterial depreciation — from actual cash value payments on structural damage claims. State Farm denies wrongdoing but agreed to a $25 million settlement.
Who is eligible to file a claim?
Missouri property owners insured by State Farm under a structural damage policy who filed a claim with a date of loss between June 5, 2012, and approximately October 2017, and whose ACV payment had nonmaterial or GCOP depreciation deducted — or who received no payment because those deductions dropped their payout below their deductible.
Is this a certified class action?
The case is a proposed class action settlement pending final court approval at a hearing scheduled for March 3, 2026.
How much money could I receive?
It depends on your specific claim. Payments are calculated based on how much depreciation was deducted and whether you later recovered it. The settlement includes 8.9% simple annual interest on qualifying amounts. Individual payment amounts vary.
How do I file a claim?
Download and complete a claim form at www.pregon-v-statefarm.com or call 1-877-206-2313. Submit one form per loss, either online or by mail, postmarked by April 2, 2026.
What documents do I need?
Your policy number, claim number, date of loss, property address, and the dollar amounts of your ACV payment, any replacement cost benefit received, and depreciation deducted.
Where can I get official information?
Visit the official settlement website at www.pregon-v-statefarm.com or contact JND Legal Administration at 1-877-206-2313 or [email protected].
Last Updated: March 2, 2026
This article is for informational purposes only and does not constitute legal advice. Legal claims and outcomes depend on specific facts and applicable law. For advice regarding a particular situation, consult a qualified attorney.
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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