State Farm settles for more than $45 million following investigation into Oklahoma roof damage claims
State Farm settles for more than $45 million following investigation into Oklahoma roof damage claims
Mario Gonzalez/KFOR Fri, November 13, 2026 at 6:04 PM UTC
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OKLAHOMA CITY (KFOR) — The Oklahoma Insurance Department announced on Friday that State Farm has agreed to a more than $45 million settlement after an investigation into roof damage claims.
According to the department, an examination found that State Farm improperly denied or failed to pay for roof damage and necessary repairs that were submitted by insured Oklahoma homeowners on claims regarding damage from strong winds and hail.
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The settlement will dedicate at least $35 million to help affected families, $10 million to the state's Strengthen Oklahoma Homes grant program, and $2.86 million in fines and examination costs to OID.
A news release states that eligible homeowners who had a claim submitted for the damage with a date of loss between January 1, 2021, and December 31, 2025, that was closed without payment will have another opportunity to have their claims independently reviewed.
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Our responsibility is to stand up for Oklahoma consumers, and that means holding insurance companies accountable when they fail to meet their obligations to policyholders.We weren't willing to simply take State Farm's word for how these claims were handled. We took action that no other state has done in a traditional examination, putting independent engineers in the field to inspect roofs and help determine whether claims were handled appropriately. That extraordinary effort took significant time and resources, but the results matter: A minimum of $35 million is being set aside to help consumers who may have been wrongfully denied payment, and eligible homeowners will have another opportunity to have their claims reviewed. That's what true consumer protection looks like.
Insurance Commissioner Glen Mulready
State Farm is expected to establish a claim reopening process for eligible Oklahoma homeowners for those with claims between January 1, 2021, and December 31, 2025. An independent third-party claims administrator will review each eligible claim.
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If the administrator determines a claim qualifies for payment, State Farm will pay it according to individual policy terms, with provisions to negotiate additional funding if needed beyond the initial $35 million allocation.
State Farm will also mail department-approved written notices to eligible homeowners explaining how to opt into the review process.
"I cannot stress enough how important it is for eligible homeowners to take advantage of this opportunity and opt in," Commissioner Mulready said. "If your roof claim was closed without payment during this period, don't assume the decision was the final word. This process gives eligible Oklahomans another chance to have their claims independently evaluated. We want consumers to know this opportunity is real, understand how to participate, and have confidence that their claims will receive an independent review."
More information about eligibility, timelines, and the claims review process will be released once details are finalized.
On Friday morning, State Farm provided the following statement about OID's market conduct examination.
State Farm disagrees with findings and characterizations in the Oklahoma Insurance Department's market conduct examination report. We evaluate each claim based on the facts of the loss and the customer's policy. Over the past five years, State Farm has responded to more than 100,000 claims in Oklahoma. A limited review of individual claims should not be mistaken for a complete picture of our overall claims-handling practices.
While other insurers reduced coverage or exited Oklahoma, State Farm remained committed to the state despite more than $178.5 million in net underwriting losses from 2021 through 2025 and more than half a billion dollars over the past 20 years.
State Farm has reached a settlement with OID that provides a path forward for customers, including a claims review program for eligible Oklahomans and a contribution to the Strengthening Oklahoma Homes Program to help homeowners better prepare for future storms.
Severe weather, rising repair costs, and affordability pressures continue to challenge Oklahoma's insurance market. Our commitment remains unchanged: treating customers fairly, paying what we owe, and maintaining the financial strength to be there when the next storm strikes.
State Farm
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