State Farm Faces Oklahoma AG Probe, Multiple Underpayment Lawsuits
State Farm faces a state investigation after Oklahoma AG Gentner Drummond intervened in Hursh v. State Farm over a $22,000 underpaid roof claim under its 'Hail Focus Initiative.' A Broken Arrow homeowner’s May 2025 fire claim remains unresolved seven months later, while federal suits target its 'Fire ACE' claims system.
1. Broken Arrow Homeowner’s Dispute
In May 2025 a Broken Arrow couple’s home was destroyed by a fire sparked when a squirrel chewed through garage wiring, saturating the structure with 10,000 gallons of water and collapsing every ceiling. Seven months later State Farm first acknowledged a total loss then reversed to a repair decision, leaving the family living in a trailer and prompting a lawsuit and yard sign protest.
2. Oklahoma AG’s Legal Intervention
In December 2025 the Oklahoma Attorney General filed to intervene in Hursh v. State Farm after the insurer sought to block the move. The petition alleges an internal 'Hail Focus Initiative' directed adjusters to reclassify hail damage as wear and tear, seeking remedies under state racketeering and consumer protection statutes.
3. Federal Lawsuits Over Claims Systems
A New Mexico federal suit challenges Fire ACE, alleging it incentivized claim denials and cost minimization with consulting firm guidance. In California a judge certified nearly 200,000 homeowners in a class action claiming improper depreciation of sales tax on property payouts.
4. Industry Ratings and Market Share
A major property claims satisfaction survey scored State Farm at 661 points, below the 682 industry average and ranking 14th of 16 firms. With roughly 30% of the Oklahoma homeowners market and the largest national footprint, even average complaint rates pose significant reputational and financial exposure.