State Farm saved $1.4B by changing roof claim rules, unsealed records show

Unsealed internal documents reveal that State Farm saved approximately $1.4 billion in a single year by changing how it evaluated hail and wind damage roof claims starting in 2020. According to the records, the company shifted its approach to reduce indemnity payouts, significantly lowering the ratio of roof replacements to repairs. Internal communications noted that the company moved from replacing five and a half roofs for every one repaired to roughly two replacements for every one repair by 2022.

This revelation is central to a legal conflict involving nearly 1,000 Oklahoma homeowners and state officials. In a separate legal action, homeowners Craig and Elizabeth Gutierrez have filed a petition to force the Oklahoma Insurance Department to release a long-running investigation into State Farm’s claims-handling practices. The plaintiffs argue that Insurance Commissioner Glen Mulready has missed statutory deadlines for disclosing the results of the review.

Oklahoma Attorney General Gentner Drummond has criticized the delay in releasing the investigation, alleging that residents are suffering due to the lack of regulatory transparency. While the Insurance Department indicated the review might not conclude until 2026, plaintiffs claim the delay is politically motivated.