For Immediate Release:
November 13, 2026
Mulready Announces More Than $45 Million in State Farm Settlement Following Extensive Roof Claims Investigation
State Farm to Reopen Eligible Wind and Hail Claims, Provide a Minimum of $35 Million for Consumer Restitution and Contribute $10 Million to Strengthen Oklahoma Homes Program
OKLAHOMA CITY – The Oklahoma Insurance Department (OID) today released its market conduct examination of State Farm Fire and Casualty Company (State Farm), concluding an extensive investigation into the company’s handling of Oklahoma homeowners’ claims for wind and hail damage to roofs.
The examination found that State Farm improperly denied or failed to pay for roof damage and necessary repairs on claims submitted by Oklahoma homeowners who had purchased insurance coverage to protect their homes.
As a result of the examination, State Farm has agreed to a settlement totaling more than $45 million, including a minimum of $35 million dedicated to making affected consumers whole, $10 million for Oklahoma’s Strengthen Oklahoma Homes grant program, and an additional $2.86 million in fines and examination expenses payable to the Department.
Most importantly, eligible Oklahoma homeowners who had a claim for wind and hail damage with a date of loss between January 1, 2021, and December 31, 2025, that was closed without payment will have another opportunity to have their claims independently reviewed.
Closed without payment claims include those for insureds who received partial payment or whose claims were determined to be under the deductible amount.
“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.”
Under the settlement, State Farm will establish a claim reopening process, at its own expense, for eligible Oklahoma homeowners who had a claim for wind and hail damage with a date of loss between January 1, 2021, and December 31, 2025, that was closed without payment.
An independent third-party claims administrator, mutually selected by the Department and State Farm, will review each eligible claim. The administrator will evaluate the original claim file and any additional documentation or evidence submitted by the policyholder.
If the independent administrator determines that a claim qualifies for payment, State Farm will pay the claim in accordance with the insured’s individual policy. If more funds are needed to pay all claims, then an additional amount will be agreed upon between OID and State Farm.
State Farm will send written notices, approved by the Department, to eligible homeowners explaining the review process and how to opt in. The Department will also work to help consumers understand the process and recognize that the official outreach is legitimate.
“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.”
In addition to consumer restitution, State Farm has agreed to contribute $10 million to the Oklahoma Insurance Department’s Strengthen Oklahoma Homes grant program.
The program helps eligible homeowners strengthen their homes against severe weather by installing fortified roofs designed to better withstand Oklahoma’s challenging weather conditions.
Homeowners who participate and successfully fortify their roofs are seeing an average homeowners’ insurance premium savings of $700.
The additional funds will support the program’s continued efforts to reduce storm damage, strengthen communities, and make Oklahoma homes more resilient.
The $2.86 million in fines and examination expenses will be paid directly to the Oklahoma Insurance Department.
The Department will continue overseeing the implementation of the settlement, including the claims reopening process, the selection of the independent claims administrator, and communications with eligible policyholders.
Additional information about eligibility, timelines, and the claims review process will be released as details are finalized.
If you have questions about other insurance issues, please contact the Oklahoma Insurance Department at 800-522-0071 or visit our website at www.oid.ok.gov.