Allstate Arizona Depreciation Class Action Settlement
Allstate agreed to settle a class action claiming it improperly deducted "Nonmaterial Depreciation" (such as labor) when paying certain Arizona property claims for structural damage. Eligible Arizona policyholders who were paid on a structural loss claim between April 25, 2017 and October 1, 2026 can file a claim by January 29, 2027 for 50% of the net estimated Nonmaterial Depreciation that was withheld and never later paid, plus 10% simple annual interest, or a one-time payment of $10 to $360 if the depreciation was later recovered.
Settlement structure
Claims-made
Allstate pays each approved claim by formula; no fixed fund
Top payout
50% + interest
Of net withheld nonmaterial depreciation, plus 10% simple interest per year
Claim deadline
Jan 29, 2027
86 days remaining
You may be owed money
Get claim instructions and more information directly from the official settlement website. Deadline: Jan 29, 2027.
Do you qualify?
You are a Class Member if ALL of the following apply:
- You were a policyholder under an Allstate property policy and made a claim for structural damage to property in Arizona between April 25, 2017 and October 1, 2026.
- Allstate paid the claim based on an Xactimate estimate and withheld Nonmaterial Depreciation from an actual cash value (ACV) payment.
- Excluded: Claims under policy forms that permit labor depreciation; policyholders whose claims exhausted policy limits; claims denied or abandoned without an ACV payment; Allstate and its officers and directors; assigned judicial officers, their staff, and immediate families; and Class Counsel and their immediate families.
Not sure if you qualify? Call the Settlement Administrator at 1-866-945-4242, or get more information from the settlement website directly at HernandezDepreciationSettlement.com.
What happened
This lawsuit, Hernandez v. Allstate Vehicle and Property Insurance Company, claims that Allstate improperly deducted Nonmaterial Depreciation, meaning depreciation on costs other than materials such as labor, when calculating actual cash value payments on Arizona structural damage claims. The case is pending in the Superior Court of Arizona for Mohave County, and the Representative Plaintiff is Lillie Hernandez.
Allstate denies that it did anything wrong, and the Court has not decided who is right. The parties agreed to settle to avoid the cost and risk of further litigation. Attorneys' fees, expenses, the service award, and administration costs are paid by Allstate separately and do not reduce payments to class members.
How to file a claim
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1. Confirm you are eligible
You must have made an Arizona structural damage claim to an Allstate entity between April 25, 2017 and October 1, 2026, and received an ACV payment from which Nonmaterial Depreciation was withheld.
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2. Understand your payment
If Allstate never paid back all of the withheld Nonmaterial Depreciation, you may receive 50% of the net estimated amount withheld, plus 10% simple interest per year from your initial ACV payment. If you later recovered all outstanding depreciation through the claims process, you may receive a one-time payment of $10 to $360, depending on the amount withheld.
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3. Get the details from the settlement website
Get claim instructions and more information from the official settlement website at HernandezDepreciationSettlement.com. Online claims are due by midnight Mountain Standard Time on January 29, 2027, and mailed Claim Forms must be postmarked by January 29, 2027 and sent to: Allstate Hernandez Depreciation Settlement, c/o Settlement Administrator, 1650 Arch Street, Suite 2210, Philadelphia, PA 19103.
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4. Receive your payment
Payments are mailed only after the Court grants final approval at the December 15, 2026 Final Approval Hearing, any appeals are resolved, and claims administration is complete.
Key dates
- Nov 16, 2026 Opt-out & objection deadline Soon
- Jan 29, 2027 Claim filing deadline Upcoming
- Dec 15, 2026 Final Fairness Hearing (10:30 a.m., via Zoom) Upcoming
- TBD after final approval Payments issued to claimants Pending
The Final Approval Hearing is scheduled for December 15, 2026 at 10:30 a.m. via Zoom before the Superior Court of Arizona for Mohave County. Requests for exclusion must be postmarked, and objections filed, by November 16, 2026. The Court may move the hearing or change its format, so check HernandezDepreciationSettlement.com for updates.
Where the money is going
This is a claims-made settlement with no fixed fund. Allstate pays each approved claim using the settlement formula. Attorneys' fees and expenses, the service award, and notice and administration costs are paid by Allstate separately and do not reduce class member payments.
Fee, expense, and service award amounts are maximums subject to Court approval at the December 15, 2026 Final Approval Hearing. The Court may award less. Individual payment amounts depend on the Nonmaterial Depreciation withheld on each claim.
Common questions
How much money will I receive?
It depends on your claim. If withheld Nonmaterial Depreciation was never fully paid, you may receive 50% of the net estimated amount withheld plus 10% simple annual interest from your initial ACV payment through the Effective Date. If you later recovered all outstanding depreciation, you may receive a one-time payment of $10 to $360. No fixed amount is guaranteed.
Do I need to submit proof of purchase?
You must submit a valid Claim Form to be paid. Payments are calculated from Allstate's claim records. Anyone filing on behalf of a class member must include proof of legal authority. Get more information about what the Claim Form asks from the settlement website directly.
What if I didn’t receive a notice?
Notices were sent to policyholders identified in Allstate's records. If you believe you fit the class definition but did not receive a notice, get more information from the settlement website directly at HernandezDepreciationSettlement.com or call 1-866-945-4242.
Does staying in the class affect my right to sue later?
Yes. Unless you exclude yourself by November 16, 2026, you will release Allstate and the other Released Persons from the Released Claims defined in the Settlement Agreement, whether or not you file a claim. The full release is in the Settlement Agreement at HernandezDepreciationSettlement.com.
When will payments be sent out?
Payments will be mailed after the Court grants final approval at the December 15, 2026 hearing, any appeals are resolved, and claims administration is complete. Check HernandezDepreciationSettlement.com for updates.
Dapeer Law, P.A.
Consumer class action attorneys based in South Florida. We track settlements so you don’t have to.
Similar open settlements
This page is for informational purposes only and does not constitute legal advice. Dapeer Law, P.A. is not the administrator of this settlement and is not affiliated with Allstate Vehicle and Property Insurance Company and related Allstate and Encompass entities, Angeion Group (the Settlement Administrator), or Class Counsel Erik Peterson of Erik Peterson Law Offices, PSC, James Brandon McWherter of McWherter Scott Bobbitt, PLC, T. Joseph Snodgrass of Snodgrass Law LLC, Michaile Berg of Berg Law, and Broc Wickland and Jake Baldridge of Whitney Whitney Baldridge Atkinson, PLLC. The case is Hernandez v. Allstate Vehicle and Property Insurance Company, Case No. CV-2026 00048, pending in the Superior Court of the State of Arizona in and for the County of Mohave before the assigned judge of the Mohave County Superior Court. Class representatives are Lillie Hernandez. Allstate denies wrongdoing. This website is attorney advertising. Past results do not guarantee future outcomes.