OKLAHOMA CITY, Oklahoma — State Farm Fire and Casualty Company has agreed to a settlement worth at least $47.86 million following an extensive investigation by the Oklahoma Insurance Department (OID) into the insurer’s handling of homeowners’ roof damage claims.
The agreement includes a minimum of $35 million in consumer restitution, a $10 million contribution to Oklahoma’s Strengthen Oklahoma Homes program and $2.86 million in regulatory fines and examination expenses.
Oklahoma Insurance Commissioner Glen Mulready announced the settlement after a market conduct examination found that State Farm improperly denied or failed to pay certain claims involving wind and hail damage and necessary roof repairs.
Oklahoma Insurance Investigation Identifies Improper Roof Claim Denials
The Oklahoma Insurance Department examined State Farm’s handling of homeowners’ insurance claims involving storm-related roof damage.
Regulators concluded that some policyholders did not receive payments for covered damage or necessary repairs, despite having purchased insurance protection for their properties.
The investigation included an unusual examination approach involving independent engineers conducting roof inspections to assess whether claims had been handled appropriately.
“Our responsibility is to stand up for Oklahoma consumers, and that means holding insurance companies accountable when they fail to meet their obligations to policyholders,” said Insurance Commissioner Glen Mulready. “We weren’t willing to simply take State Farm’s word for how these claims were handled. We took action that no other state has done in a traditional examination, putting independent engineers in the field to inspect roofs and help determine whether claims were handled appropriately. That extraordinary effort took significant time and resources, but the results matter: A minimum of $35 million is being set aside to help consumers who may have been wrongfully denied payment, and eligible homeowners will have another opportunity to have their claims reviewed. That’s what true consumer protection looks like.”
State Farm to Reopen Eligible Wind and Hail Insurance Claims
Under the settlement, State Farm must establish and fund a process allowing eligible Oklahoma homeowners to request independent reviews of previously closed claims.
Homeowners With Claims From 2021 Through 2025 May Qualify
The review process applies to eligible wind and hail damage claims with loss dates between January 1, 2021, and December 31, 2025, that were closed without payment.
The settlement’s definition also includes certain claims involving partial payments or amounts determined to fall below policy deductibles.
An independent third-party administrator, jointly selected by State Farm and the department, will examine original claim records and additional evidence provided by homeowners.
Claims determined to qualify for compensation will be paid according to the applicable insurance policy.
If the initial restitution allocation proves insufficient, State Farm and regulators will agree on additional funding.
Commissioner Encourages Eligible Homeowners to Participate
State Farm will distribute department-approved written notices explaining eligibility and how homeowners can opt into the review process.
“I cannot stress enough how important it is for eligible homeowners to take advantage of this opportunity and opt in,” Commissioner Mulready said. “If your roof claim was closed without payment during this period, don’t assume the decision was the final word. This process gives eligible Oklahomans another chance to have their claims independently evaluated. We want consumers to know this opportunity is real, understand how to participate, and have confidence that their claims will receive an independent review.”
$10 Million Investment to Strengthen Oklahoma Homes Against Severe Weather
Beyond consumer compensation, State Farm will contribute $10 million to the Oklahoma Insurance Department’s Strengthen Oklahoma Homes grant program.
The initiative helps qualifying homeowners install fortified roofing systems designed to withstand severe weather and reduce potential property damage.
According to the department, participating homeowners who successfully strengthen their roofs are experiencing average annual homeowners’ insurance premium savings of approximately $700.
The additional funding is intended to expand weather-resilience efforts and reduce future storm-related losses.
Regulators to Oversee Settlement Implementation
The Oklahoma Insurance Department will receive $2.86 million in fines and examination expenses and continue supervising the settlement’s implementation.
Oversight will include selecting the independent claims administrator, monitoring reopened claims and reviewing communications sent to eligible policyholders.
Further information about eligibility requirements, application timelines and the review process will be released as arrangements are finalized.
Homeowners can obtain updates through the department’s State Farm settlement information page.
For other insurance-related questions, residents can contact the Oklahoma Insurance Department at 800-522-0071.
The settlement represents a significant regulatory intervention in Oklahoma’s homeowners’ insurance market, combining compensation for affected policyholders with investment in measures intended to reduce future severe-weather damage.
