On May 21, 2024, a major hailstorm pounded Tulsa County, Oklahoma, leaving many roofs damaged by golf ball–size hail. Tim Willard says a State Farm adjuster initially told him his roof needed replacement; the insurer later denied the claim and canceled his policy. Willard replaced the roof with savings and loans so another company would insure his home, then sued State Farm.
Willard’s story is echoed in hundreds of lawsuits nationwide claiming that State Farm, the country’s largest home insurer, has used internal practices to deny or reduce payments for hail and wind damage. NPR reviewed nearly two dozen of those cases and related court filings; plaintiffs’ attorneys say the documents reveal methods the company allegedly used to limit roof-replacement payouts.
Oklahoma has become the litigation center. A plaintiffs’ firm said more than 600 suits were pending against State Farm in the spring of 2024. Oklahoma Attorney General Gentner Drummond has intervened in at least one case, alleging a covert program to deny and underpay roof claims. State Farm denies wrongdoing, saying it pays valid claims based on policy language and facts, and that it works to shield customers from predatory contractors and lawyers.
Plaintiffs point to two main tactics they say State Farm began using around 2020. First, adjusters and engineers allegedly applied company-created terms and exclusions that do not appear in customers’ policies — for example, requiring proof of “functional damage” or a visible fracture through a shingle before approving replacements. In Wisconsin, Nicole Maziasz says State Farm denied her 2023 hail claim after an engineer concluded her shingles had no “functional damage.” Her policy did not define that phrase; the couple later settled for roughly the cost of a new roof and attorneys’ fees.
Second, plaintiffs contend State Farm limited adjusters’ authority to declare roofs total losses, routing those decisions to managers who applied the insurer’s internal damage criteria. In a 2022 deposition, a former claims specialist, Amy Lanier, testified that teams were instructed to deny claims even when individual adjusters thought payment was appropriate, and that staff were often told to classify storm-damaged roofs as “wear and tear.” State Farm’s lawyers say there was no company-wide directive to override adjusters and call the program an effort to increase claims accuracy and correct overpayments and underpayments.
The company argues that paying for losses not covered by policies ultimately raises costs for other policyholders and makes insurance less affordable.
These disputes are unfolding against broader pressures on the home-insurance market. Warmer temperatures and changing weather patterns are increasing the frequency and severity of storms, floods and wildfires, raising claims and repair costs. Hail is an especially costly peril: industry data cited in filings indicate hail drove roughly $51 billion in insured losses from severe storms in a recent year and often represents the bulk of severe-storm claims.
Home insurance prices have climbed — some trackers show average U.S. rates up roughly 46% since 2021 — and insurers have pulled back from higher-risk areas. Nonrenewals have risen in states such as Florida, South Carolina, California and Oklahoma, shrinking options for homeowners and increasing scrutiny of insurers’ claims practices.
State Farm, a mutual company owned by its policyholders, reported improved earnings after earlier underwriting losses. The company told NPR it paid more than $1 billion for wind and hail damage in Oklahoma over the past two years and emphasized that its homeowner policies provide broad coverage in a state with frequent wind and hail losses.
Plaintiffs’ attorneys say litigation has yielded jury verdicts and settlements that back their claims. In one Oklahoma case, a jury awarded $325,000 plus breach-of-contract damages after finding State Farm acted in bad faith. Other settlements have returned multimillion-dollar recoveries to homeowners, though many include confidentiality terms and require the return or destruction of corporate discovery materials.
State Farm has faced high-profile disputes before: in 2022 the company agreed to pay $100 million to resolve federal allegations related to Hurricane Katrina claims handling. Plaintiffs’ lawyers and consumer advocates say regulatory oversight is sometimes too limited, leaving homeowners to pursue relief in court. The National Association of Insurance Commissioners notes that state regulators investigate formal complaints and often settle disputes without litigation, but consumers still have access to the courts when they believe laws were broken.
The insurance industry counters that aggressive legal advertising and frivolous suits increase costs for everyone. Industry groups such as the Insurance Information Institute have campaigned against what they call “legal system abuse,” and State Farm has pointed to such commentary in its defense.
Oklahoma’s insurance regulator says it has been probing roof-claim handling for two years, but investigative materials are confidential. Attorney General Drummond argues state enforcement is needed because sealed settlements do not deter alleged misconduct; his office is also looking at other insurers.
Veteran lawyers who have litigated against State Farm for decades describe recurring tactics when insurers seek to limit payouts. Jeff Marr, an Oklahoma plaintiffs’ attorney who has sued State Farm since 1999, says similar strategies resurface whenever companies tighten claims practices.
For homeowners, the consequences can be immediate and severe: denied or underpaid claims can force families to borrow, delay needed repairs, or face accelerating property damage and even higher foreclosure risk. Experts warn that persistent claim denials in storm-prone areas can depress neighborhood property values and strain local public resources.
State Farm maintains it follows policy language and the law and says efforts to refine claims handling are part of its responsibility to policyholders. Plaintiffs, the Oklahoma attorney general and some juries have reached different conclusions. The litigation and regulatory reviews are ongoing, and Drummond has said he hopes state enforcement will produce penalties that discourage bad practices and prompt broader industry accountability.