State Farm to Pay $45M in Oklahoma Roof Claims: Who Qualifies & How to Reopen
State Farm will pay over $45 million after Oklahoma regulators found it wrongly denied wind and hail roof claims; $35 million is set aside for homeowners.
Image: Wikimedia Commons / Nikola (CC BY-SA 4.0)
OKLAHOMA CITY, Nov. 13 — State Farm has agreed to pay more than $45 million to settle an investigation by the Oklahoma Insurance Department that found the insurer improperly denied or underpaid homeowners’ claims for wind and hail damage to their roofs.
The settlement, announced by the department on Friday, includes at least $35 million in direct payments to affected policyholders, a $10 million contribution to the state’s Strengthen Oklahoma Homes grant program, and $2.86 million in fines and examination costs.
Key Takeaways
- State Farm will pay more than $45 million: $35 million for homeowners, $10 million for fortified-roof grants, $2.86 million in fines and costs.
- Homeowners whose wind or hail claims from 2021 to 2025 were closed without payment can have them reviewed again by an independent administrator.
- The examination covered 4,674 roof claims closed without payment and found State Farm breached the state’s Unfair Claims Settlement Practices Act.
- State Farm disputes the findings but agreed to the settlement.
Who Qualifies for the State Farm Claims Reopening in Oklahoma
The reopening covers Oklahoma homeowners who had a claim for wind or hail damage with a date of loss between Jan. 1, 2021, and Dec. 31, 2025, that was closed without payment.
State Farm will send notices, approved by the department, to eligible homeowners. “If your roof claim was closed without payment during this period, don’t assume the decision was the final word,” Insurance Commissioner Glen Mulready said.
How the Independent Review of Denied Roof Claims Will Work
State Farm will run the reopening process at its own expense. An independent administrator, chosen jointly by the department and State Farm, will review each claim against the original file and any evidence the policyholder submits. If a claim qualifies, State Farm will pay it under the policy, and if more money is needed, the two sides will agree on more.
What the $45 Million State Farm Settlement Means for Homeowners
The settlement does not resolve private lawsuits filed by Oklahoma homeowners against State Farm, which remain separate from the regulatory case. State Farm said it disagrees with the findings. “We evaluate each claim based on the facts of the loss and the customer’s policy,” the company said. It reported more than $178.5 million in underwriting losses in its Oklahoma homeowners business between 2021 and 2025, and said the settlement will not change existing coverage.
| Settlement component | Amount | Purpose |
|---|---|---|
| Consumer restitution | At least $35 million | Payments to homeowners whose claims qualify on review |
| Strengthen Oklahoma Homes | $10 million | Grants for fortified roofs that withstand severe weather |
| Fines and examination costs | $2.86 million | Paid to the Oklahoma Insurance Department |
| Total | More than $45 million | Plus more if restitution claims exceed $35 million |
The $10 million funds grants for fortified roofs, with average premium savings of $700, according to the department. See also: crop insurance premium cuts and health premiums rising for 2027. Full terms are in the Oklahoma Insurance Department’s announcement.
Frequently Asked Questions
How do I know if my State Farm roof claim qualifies for reopening in Oklahoma?
Your claim qualifies if it was for wind or hail damage, had a date of loss between Jan. 1, 2021, and Dec. 31, 2025, and was closed without payment, including partial payment or a finding that the damage fell under the deductible.
How much money will I receive from the State Farm Oklahoma settlement?
The amount depends on your policy and the administrator’s review of your claim file. At least $35 million is set aside for restitution, and if that is not enough, the department and State Farm will add more. There is no fixed payment per homeowner.
Does the State Farm settlement change my current homeowners insurance policy?
No. State Farm said the settlement will not change existing policies or coverage. It covers past claims handling and claims closed without payment between 2021 and 2025, not the terms of policies in force now.
What is the Strengthen Oklahoma Homes program and how does the $10 million help?
The program gives grants to eligible homeowners to install fortified roofs built to better withstand severe weather. State Farm’s $10 million will fund more grants.
The Oklahoma Insurance Department said it will release additional information about eligibility, timelines, and the claims review process as details are finalized.
