Seeking Justice for Customers of State Farm Faced with Race Discrimination in Homeowners Insurance Claims Coverage

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Co-Chair of the firm’s Sexual Violence, Title IX, and Victims’ Rights Practice Group

In
Indiana
Michigan
Missouri
Ohio
&
Wisconsin

Seeking Justice for Customers of State Farm Faced with Race Discrimination in Homeowners Insurance Claims Coverage

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Have You Filed a Homeowners Insurance Claim with State Farm in the Midwest Since 2022?

Experiencing race discrimination in an insurance claim can be the ultimate indignity for a homeowner who has just experienced damage to their property. Recent data shows that insurance claims filed by Black homeowners insured by State Farm Fire and Casualty (“State Farm”) in Midwestern states including Illinois, Indiana, Michigan, Missouri, Ohio, and Wisconsin are subjected to greater scrutiny in claims processing, causing significant financial and emotional harm.

In an ongoing lawsuit, co-led by Sanford Heisler Sharp and Fairmark Partners, the plaintiffs allege that this pattern of homeowners insurance discrimination is the result of State Farm’s Save & Exit use of algorithmic tools to handle the high volume of homeowner insurance claims it receives.

According to our proposed class action lawsuit, State Farm’s use of algorithmic tools results in a pattern of discriminatory results, with white homeowners almost a third more likely than Black homeowners to have their claims processed quickly, while Black homeowners are more likely to have their claims flagged for greater scrutiny, including for being potentially fraudulent.

For Black homeowners, this undue delay impacts their ability to quickly obtain insurance benefits and can harm the value of their homes and their quality of life.

The Plaintiffs allege that State Farm’s actions violate the Fair Housing Act (FHA).

As our litigation proceeds, we are interested in speaking with Black customers of State Farm with homeowner insurance policies in Illinois, Indiana, Michigan, Missouri, Ohio, and Wisconsin who fall into any of the following categories: 

 

  • Have submitted a claim since 2022
  • Have been investigated by State Farm for a fraudulent claim OR have had their claim sent to State Farm’s Special Investigation Unit (“SIU”)
  • Own a single-family detached house, condo, townhouse, cooperative unit, mobile home, or manufactured house with a homeowners insurance policy (not renters’ insurance)