Staunton Lodge v. Pekin Insurance - Illinois Property Depreciation Settlement

What happened

Pekin Insurance Company and The Farmers Automobile Insurance Association allegedly improperly deducted depreciation attributable to labor costs when adjusting some property insurance claims in Illinois. The insurance companies denied all allegations of wrongdoing. The parties settled to avoid litigation costs and trial, with the court making no determination of fault.

Do you qualify?

Policyholders under Commercial or Personal Lines property insurance issued by Pekin Insurance Company or The Farmers Automobile Insurance Association who made a structural loss claim for Illinois property between September 10, 2018 and July 30, 2020, and from which nonmaterial depreciation was withheld or caused the loss to fall below the deductible.

What the settlement pays

For those with unpaid nonmaterial depreciation: 115% of net estimated nonmaterial depreciation withheld (average $2,728). For those who recovered all depreciation: $34.22 to $130.74 depending on policy type (average $43.39).

Who is in the class

All policyholders under any commercial or personal lines property insurance policy issued by Pekin or Farmers, who made: (a) a Structural Loss claim for property located in the State of Illinois during the applicable Class Periods as defined below; and, (b) that resulted in an ACV Payment from which Nonmaterial Depreciation was withheld, or that would have resulted in an ACV Payment but for the withholding of Nonmaterial Depreciation causing the loss to drop below the applicable deductible.

Quoted from the settlement notice.

How to file

Complete and sign a claim form and mail it to the address provided, or upload it on the settlement website. The claim deadline was November 22, 2022. For payment eligibility and amount determination, you must submit a claim form. Call 1-855-579-1267 for assistance.