Published
October 26, 2026
Arizona property owners insured by Allstate who were paid for structural damage between April 25, 2017 and October 1, 2026, with labor and other nonmaterial depreciation withheld, may qualify to claim 50% of the unpaid amount plus 10% annual interest, or $10 to $360 if it was later repaid, from the Allstate Arizona depreciation class action settlement. Claims close January 29, 2027; the final approval hearing is set for December 15, 2026.
Current Status
Claims are open. The deadline is January 29, 2027; online claims must be completed before midnight Mountain Standard Time that day, and mailed claims must be postmarked by that date. The court has authorized notice to the class, and the final approval hearing is scheduled for December 15, 2026. No payment date had been announced as of October 26, 2026.Free settlement alerts
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Status
Claims Open
Claim Deadline
January 29, 2027
Online before midnight MST · mail postmarked by that date
Payment
50% + 10% interest, or $10–$360
Of unpaid withheld nonmaterial depreciation · flat amount if it was later repaid
Proof Required
Yes
Notice ID and Confirmation Code to file online · one form per loss
What Changed Recently?
Allstate Vehicle and Property Insurance Company and its affiliated insurers agreed to settle Hernandez v. Allstate Vehicle and Property Ins. Co., No. CV-2026 00048, a class action in the Arizona Superior Court for Mohave County. The court authorized a notice of the settlement, which the administrator, Angeion Group, has sent by mail or email to people identified from Allstate’s records, and the claim period is now open.The lawsuit claims that Allstate improperly deducted “nonmaterial depreciation” when it adjusted some Arizona structural damage claims. Allstate has denied all allegations that it acted wrongfully or unlawfully. The court has not found that Allstate did anything wrong, and the settlement is not an admission of wrongdoing.
When an insurer pays the actual cash value (ACV) of a damaged structure, it estimates the cost to repair or replace the damage and subtracts depreciation and the deductible. The settlement defines nonmaterial depreciation as depreciation applied through the “depreciate removal,” “depreciate non-material” or “depreciate O&P” settings in Xactimate or similar estimating software. Those settings depreciate items such as labor, removal work and contractor overhead and profit, not just the materials themselves.
Who Qualifies?
The settlement class covers policyholders under any property insurance policy issued by Allstate who made a claim for a structural loss on property in Arizona, where Allstate paid based on an Xactimate estimate and withheld nonmaterial depreciation from the ACV payment. The initial ACV payment must fall between April 25, 2017 and October 1, 2026.“Allstate” includes nine companies: Allstate Vehicle and Property Insurance Company, Allstate Insurance Company, Esurance Property and Casualty Insurance Company, Allstate Indemnity Company, Allstate Property and Casualty Insurance Company, Encompass Insurance Company of America, Encompass Property and Casualty Company, Encompass Indemnity Company and North Light Specialty Insurance Company. A structural loss means physical damage to a home, building, manufactured home, condo, rental dwelling or other structure in Arizona. Contents and personal property claims are not part of the definition.
The class excludes:
- Policyholders whose claims arose under policy forms or endorsements that expressly permit depreciation of labor.
- Policyholders whose ACV payments for a claim used up the policy limits.
- Policyholders whose claims were denied or abandoned without an ACV payment.
- Allstate and its officers and directors, the judicial officers assigned to the case and their staff and immediate families, and class counsel and their immediate families.
How Much Can You Get?
There are two payment types, depending on whether the withheld depreciation was ever paid back.- Class members who never got all of their nonmaterial depreciation back, which the notice says is a majority of the class, receive 50% of the net estimated nonmaterial depreciation that was withheld from their ACV payments and not later paid, plus simple interest at 10% a year from the date of the initial ACV payment through the settlement’s effective date.
- Class members who recovered all outstanding depreciation through the claim process, for example after completing repairs, receive a one-time payment of $10 to $360, depending on how much nonmaterial depreciation was withheld.
Amounts are figured claim by claim from Allstate’s records, and the notice gives no total settlement fund or cap. Interest is calculated from the date of the first ACV payment, so older claims carry more years of interest. The administrator determines each payment after reviewing the claim form and Allstate’s records.
Payments are not reduced by legal fees. According to the notice, Allstate separately pays class counsel’s fees and expenses, which counsel will ask the court to set at up to $870,000, the class representative’s service award of up to $7,500, and the costs of administering the settlement.
What Proof or Notice ID Is Required?
Filing online requires the Notice ID and Confirmation Code from the personalized notice mailed or emailed to class members; the online claim page opens only after both are entered. The online submission also asks for the address of the property where the loss occurred and an email address for the confirmation.The claim form asks for the claimant’s contact information, the insured’s name, the insured property’s address, the date of loss, the Allstate policy number and the Allstate claim number. Receipts and repair invoices are not requested. Extra documents are needed only in two situations: a legally authorized representative filing for a policyholder who has died or is incapacitated must include proof of that authority, and a claim that was assigned to a contractor must include a copy of the assignment.
Each claim form covers one loss. A policyholder with more than one qualifying Arizona structural loss during the class period files a separate form for each. A printable claim form, in English and Spanish, is on the settlement website for mailing; the site’s contact page handles questions from people who did not receive a notice.
What Is the Deadline?
The claim deadline is January 29, 2027. Online claims must be completed before midnight Mountain Standard Time on January 29, 2027, according to the notice. Mailed claim forms must be postmarked by January 29, 2027.The deadline to opt out is November 16, 2026. Exclusion requests must be mailed and postmarked by that date; the notice says they cannot be made by phone, email or on the settlement website. Opting out means receiving no payment but keeping the right to bring a separate case against Allstate over these claims. Objections, and notices of intention to appear at the hearing, are also due November 16, 2026.
How Do You Take Action?
Claims are filed through the official settlement website, HernandezDepreciationSettlement.com, run by Angeion Group. Its Submit Claim page asks for the Notice ID and Confirmation Code, then the covered loss address and claim details. The notice, claim form and Spanish versions of both are on the site.The notice asks class members not to contact Allstate or their Allstate agent about the settlement, since agents do not have information about it. Questions go to the administrator through the settlement website.
What Happens Next?
The final approval hearing is scheduled for December 15, 2026 at 10:30 a.m. in the Arizona Superior Court for Mohave County, by Zoom. The notice says the date and format can change and that updates are posted on the settlement website. At the hearing the court will decide whether the settlement is fair, reasonable and adequate and rule on the fee and service award requests.If the court approves the settlement and any appeals are resolved in its favor, the administrator finishes reviewing claims and mails each claimant a letter. Qualifying claimants receive their check with that letter; claimants who do not qualify receive a letter explaining why. If the court does not approve the settlement, no payments are made.
Sources and Verification
- Official Allstate Hernandez Depreciation Settlement website (administered by Angeion Group), including the important dates and the Submit Claim login page.
- Notice of Class Action Settlement, Hernandez v. Allstate Vehicle and Property Ins. Co., No. CV-2026 00048 (Ariz. Super. Ct., Mohave Cnty.), on the settlement website.
- Class Action Settlement Claim Form, on the settlement website.
Questions
What is nonmaterial depreciation in the Allstate Arizona settlement?
When an insurer pays the actual cash value of structural damage, it subtracts depreciation from the estimated replacement cost. The settlement defines nonmaterial depreciation as depreciation taken through the depreciate removal, depreciate non-material or depreciate O&P settings in Xactimate or similar estimating software, which apply depreciation to items such as labor, removal work and overhead and profit rather than only to materials. The lawsuit claims Allstate improperly deducted it on Arizona structural loss claims; Allstate denies wrongdoing.
Does each Allstate claim need its own claim form?
Yes. A claim form covers one covered loss. A policyholder who had more than one Arizona structural loss claim paid by Allstate during the class period must complete, sign and submit a separate claim form for each loss to be considered for payment on each one.
Do class counsel’s fees come out of Allstate settlement payments?
No. According to the notice, Allstate pays the attorneys’ fees and expenses, up to $870,000 if the court approves, the class representative’s service award of up to $7,500, and the administration costs separately, and those payments do not reduce the amounts paid to class members.
Can a roofing contractor file an Allstate depreciation claim?
A contractor that received an assignment of the insurance claim can submit a claim form, attaching a copy of the assignment. The form says a contractor who files agrees to indemnify Allstate if the policyholder also files or disputes the payment. Policyholders who assigned a claim are asked to say so on their own form.
How are Allstate Arizona depreciation settlement payments sent?
Each claimant receives a letter saying whether the claim qualifies. If the court approves the settlement and the claim qualifies, the settlement check is included with that letter. Payments are made only after final approval and any appeals are resolved; no payment date had been announced as of October 26, 2026.
About This Page
OpenClassActions.com is a consumer news and information site, not a law firm. This article is general information about the Allstate Arizona depreciation settlement. It is not legal advice, and reading it does not create an attorney-client relationship.
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Settlement Amount
50% of unpaid nonmaterial depreciation + 10% interest, or $10–$360
Per claim · no total fund stated
Case Title
Hernandez v. Allstate Vehicle and Property Ins. Co.
Case Number
CV-2026 00048
Court
Arizona Superior Court, Mohave County
Final Approval Hearing
December 15, 2026 at 10:30 AM
Via Zoom · check the settlement website for changes
Administrator
Angeion Group
Official Website
Hernandez Depreciation Settlement.com
