If you had an American Family Insurance property policy in Arizona and filed a structural damage claim between June 24, 2018, and November 4, 2022, you may be owed money. A class action settlement could return part of the depreciation that was withheld from your claim.
Here’s what you need to know and how to claim your payment.
Why is there a lawsuit?
Policyholders accused American Family Mutual Insurance Co. and Homesite Insurance Co. of improperly withholding nonmaterial depreciation (like labor and overhead) when paying structural loss claims. This practice allegedly reduced the actual cash value (ACV) payments owed to consumers under Arizona law.
The companies deny wrongdoing but agreed to a $2.4 million settlement to resolve the claims.
Who qualifies?
You may be eligible if:
You had an American Family Insurance property policy in Arizona
You filed a structural loss claim (Coverage A or B) between June 24, 2018 – November 4, 2022
An Xactimate estimate was used to calculate your payment
Your ACV payment had nonmaterial depreciation withheld (or would have, but the withholding dropped it below the deductible)
How much can people get?
Payments depend on when your claim was made and whether depreciation was later paid:
Nov. 2, 2019 – Nov. 4, 2022 (non-Homesite policies): 100% of withheld depreciation + interest
June 24, 2018 – Nov. 1, 2019 (or Homesite policies): 50% of withheld depreciation + interest
If you eventually received withheld depreciation: flat payments based on the original withheld amount:
| Withheld Amount | Flat Payment |
|---|---|
| $1–$5,000.99 | $10 |
| $5,001–$10,000.99 | $20 |
| $10,001–$20,000.99 | $40 |
| $20,001–$40,000.99 | $80 |
| $40,001–$60,000.99 | $120 |
| $60,001–$80,000 | $160 |
| Over $80,000 | $200 |
What Are Your Options?
Here’s a quick look at your choices in this settlement:
| Option | What It Means | Deadline |
|---|---|---|
| Submit a Claim | Get your cash payment (varies, up to $200 or more). | December 1, 2025 |
| Exclude Yourself | No payment; keep the right to sue separately. | September 17, 2025 |
| Object | Tell the Court you disagree with the settlement. | September 17, 2025 |
| Go to the Hearing | Ask to speak about your objection in Court. | October 17, 2025 at 9:00 a.m. CT |
| Do Nothing | No payment; give up your rights. | N/A |
How to File a Claim
To get your share, fill out a Claim Form online or by mail. Include required details (claim number, policy number, date of loss, etc.).
Claims Administrator:
Zubia v. American Family Administrator
P.O. Box 2734, Portland, OR 97208-2734
888-894-9318
If you had an Arizona property insurance policy with American Family and filed a claim during the class period, you could get money back.
