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Nationwide Underpaid Home Insurance

Did your insurance company underpay your claim by depreciating the cost of labor?

Underpaid Home Insurance

Depreciated Cost of Labor for Home Repairs Class Action Lawsuit Investigation

Are you a homeowner who filed a first-party home insurance property claim? Did your insurance company underpay your claim by depreciating the cost of labor?

Homeowners who suffer property damage—including water damage, storm damage, roof leaks, or other types of property damages—can file claims to their home insurance companies to reimburse them for repairs. However, some homeowners allege that insurance companies are underpaying those claims.

The leading cause for underpayment according to consumers is that insurance companies nationwide are reportedly underpaying homeowners for the cost of repairing property damage to their homes.

In response, some homeowners are considering legal action against their insurers for failing to live up to their insurance contract terms. In July 2020, a class action lawsuit was filed in a Kentucky federal court against State Farm Fire and Casualty Insurance Co. on the grounds of allegedly improperly including labor costs when calculating depreciations to determine the actual cash value of a property.

The ruling to proceed may force the insurance company to correct over 65,000 policyholders’ underpayments.

File Your Underpaid Home Insurance Claim

Shamis & Gentile, P.A. is currently investigating claims by homeowners who have been underpaid by their home insurance companies.

You may qualify if you subscribe to all three of the following:

  • You are a homeowner who has suffered property damage
  • You have filed a first-party home insurance property claim to your home insurance company
  • You were underpaid your claim because your insurance company depreciated the cost of labor for repairs

If you filed a home insurance property claim for property damage and were underpaid, you do not have to fight your insurer on your own.

Underpaid Home Insurance Claims

Homeowners rely on their insurance companies to provide coverage for property damage and other issues that affect their property. However, insurance companies all too often seem to be more attentive to their bottom lines than they are to the people and businesses to which they provide coverage.

One way that insurance companies allegedly shortchange policyholders is by selling “replacement cost” insurance that allows them to pay only the “actual cash value” (ACV) of a claim until the policyholder replaces or repairs the property damage. Some insurers are reportedly not only depreciating physical costs of the property, but also depreciating labor costs without warning policyholders that they would do so.

In April 2019, the Tennessee Supreme Court ruled that home insurance companies cannot depreciate labor costs when considering cash value for a property damage claim.

The homeowners in the case reportedly suffered damage to their properties and submitted an insurance claim, but their insurance company reportedly calculated the replacement cost of the damaged property then subsequently depreciated both labor and material costs. Accordingly, the homeowners sued the insurer and argued that the insurance company’s practice of depreciating labor costs constituted a breach of their contracts.

This is merely one example of a home insurance company underpaying their policyholders. A current class action lawsuit investigates how widespread this practice may be, seeking potential plaintiffs nationwide who may have been the target of underpaid home insurance policy claim schemes.

How to File an Underpaid Home Insurance Claim Lawsuit

If you believe you were underpaid for the labor portion of your home insurance claim, an attorney can help you determine whether it makes sense for you to take legal action against your insurance company.

If all three of the below scenarios apply to you, you may qualify to join this nationwide class action lawsuit investigation into underpaid home insurance claims and seek compensation.


Homeowners who have suffered property damage


Who have filed a first-party home insurance property claim to their home insurance companies


Were underpaid their claim due to a depreciated cost of labor for repairs by their insurance companies

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Underpaid Home Insurance

Underpaid Home Insurance Claim FAQ’s

What is the Home Insurance Claim Process?

What is the Depreciation of Labor?

How do you make a home insurance claim?

Can you keep home insurance claim money?

Why do insurance companies underpay home insurance claims?

Depreciation of labor costs is a reason for underpaying insurance claims?

Was your home insurance claim underpaid?

How do I file a home insurance claim lawsuit?

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