Oklahoma AG Sues State Farm Over Alleged Denial of Hail Damage Claims

The Oklahoma Attorney General Gentner Drummond has filed a motion in a lawsuit against State Farm, based on numerous consumer complaints alleging coordinated denial of hail and wind damage claims. Drummond noted that Oklahoma homeowners pay some of the highest home insurance rates in the nation, intensifying concerns over these claim practices. Over 100 families have joined the lawsuit claiming State Farm deliberately denied valid claims to retain premium revenues. One affected homeowner, Chris McBee of Moore, shared that after a third-party contractor recommended roof replacement due to hail damage, State Farm later denied the claim citing minor repair needs below the deductible. State Farm responded by emphasizing that every claim is reviewed individually and denying that the lawsuit claims are accurate. The company is currently working to resolve issues with the McBee family. Oklahoma's Insurance Commissioner Glen Mulready issued a statement acknowledging ongoing market conduct investigations into roofing claim handling by insurers, including State Farm, dating back several years. The department has pioneered sending independent engineers to verify adjuster assessments, underlining the regulatory focus on consumer protection in this market segment. The Attorney General is seeking penalties, damages, structural reforms, and recovery of profits in the lawsuit. The controversy highlights tensions in the home insurance market in Oklahoma, a state prone to severe weather events, driving a critical look at insurer claims practices. Regulators continue to monitor and investigate to ensure compliance with claim handling standards and protect insured homeowners from undue claim denials.