Understanding the Issues in Oklahoma

Putting Oklahoma Court Orders in Context

Recent District Court orders do not resolve the allegations in the lawsuit, which remain disputed. State Farm evaluates each claim based on the facts and coverage purchased and remains focused on helping people recover after a loss.

Over the past two years, we have paid more than $1 billion to Oklahoma customers for wind and hail damage. We stand ready to explain our processes and provide full and accurate context for our decision-making.

The misleading narrative being advanced by billboard attorneys does not accurately reflect State Farm’s claims practices or the facts underlying individual claims.

State Farm Statement on District Court Order

State Farm is committed to meeting the needs of our policyholders in Oklahoma, and we’re proud of our team’s work to help communities recover after disaster strikes. Over the past two years alone, State Farm has paid more than $1 billion to Oklahoma customers for wind and hail damage. By contrast, the number of bad-faith lawsuits currently pending in Oklahoma is equivalent to approximately 1% of the roughly 30,000 residential and commercial claims State Farm has responded to each year, on average, over the past five years. State Farm takes customer concerns seriously, including concerns raised in litigation. Bad-faith lawsuits involve serious allegations, but are only that, allegations, and should be addressed through the legal process.

State Farm provides the benefits available to individual customers under their policies. A court ruling on document confidentiality during litigation does not undermine that fact. We continuously seek to enhance our processes to serve customers consistent with our commitments. Each claim is fairly and diligently evaluated based on its specific facts.

Efforts by trial lawyers to turn disputed allegations into broad, misleading conclusions about State Farm’s claims practices create unwarranted confusion for customers, agents, and communities that depend on a strong and stable insurance market after severe weather. State Farm will continue addressing these matters through the appropriate legal processes while remaining focused on delivering reliable support to Oklahomans.

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Every customer and every claim is unique. Coverage decisions are based on the specific facts of the loss and the customer's policy, not on general assumptions about what a claim should cover. While recent media coverage has often used individual homeowners' experiences to illustrate broader allegations about State Farm's claims handling, it's important to view those stories in the context of the more than half a million residential and commercial policies State Farm serves across Oklahoma and the more than $1 billion the company has paid to Oklahoma customers for wind and hail damage over the past two years.

We take these criticisms seriously and strongly disagree with characterizations of our claims practices. All claims disputes deserve careful review. Because we are committed to protecting our customers' privacy, we cannot publicly discuss all of the facts, policy provisions, or claim-specific circumstances that informed a coverage decision. As a result, most news reports do not include the full context behind an individual claim.

Coverage determinations involve many factors, including the cause and extent of the damage, the terms, conditions, endorsements, and exclusions of the customer's policy, as well as any additional information provided during the claims process. For that reason, it is not accurate to characterize a claim as simply "covered" or "not covered" without understanding the full context. Behind every claim is a person, family, or business working to recover after a loss, and we understand how important those moments are. Our goal is to evaluate every claim fairly, explain our decisions clearly, and help our customers recover as quickly as possible.

The Facts About Homeowners Insurance Coverage

Over the past two years, State Farm has paid more than $1 billion to Oklahoma customers for wind and hail damage while continuing to serve communities through more than 300 local agents.

Our Homeowners Policy provides broad protection, but like every insurance policy, it explains what is covered, what is excluded, and what deductible applies. Understanding those provisions helps set expectations before a loss occurs.
When damage isn't covered under the policy - for example, because it resulted from normal wear and tear - we explain why. Applying policy terms consistently helps ensure premiums remain fair for all customers.
We evaluate every claim individually based on the facts of the loss and the customer's policy. Similar storms—or even neighboring homes—can result in different claim outcomes depending on the particular property, the damage and the coverage purchased.
When damage is covered, we pay what is owed under the policy. When damage is not covered, we explain why and remain willing to consider any additional information a customer provides.
Applying policy terms consistently helps keep the claims process fair for all customers and supports our ability to continue paying covered claims after future storms.

The Facts About Contractor Advice

Roofing contractors play an important role in helping homeowners repair storm damage. However, they are independent businesses representing their own interests and are not responsible for interpreting or administering insurance policies.

Roofing contractors may explain what they believe insurance should cover, but they typically do not know the customer's specific policy, endorsements, or applicable exclusions.
Not every homeowner's policy provides the same coverages or endorsements.
Claims decisions are based on the customer's individual policy, the facts of the loss, and the applicable policy language—not on general assumptions about what insurance should pay.

Oklahoma’s risk is real—and it’s growing.

Oklahoma experiences some of the highest wind and hail losses in the country. At the same time, rebuilding costs (materials and labor) have risen sharply. Those two forces - more frequent or severe losses and higher repair costs - are the primary reasons behind premium pressure. Our focus is on collecting enough premium to pay claims and remain financially strong so we can keep our promises, especially after catastrophic weather.

Oklahoma premiums are priced for the risks in this state - not for losses in other states, including wildfires, earthquakes, or hurricanes. Contact your agent to discuss coverage options.

We’re built to serve customers, not chase short-term gains.

As a mutual company, we are focused on serving customers, not outside shareholders, to ensure their interests come first. Unlike publicly traded companies driven by short-term profits, mutual companies commit to being dependable sources of protection for the long haul. State Farm is committed to being a responsible steward of the resources we manage, ensuring we can continue to provide the coverage you need in the face of increasing risks. We encourage you to reach out to your State Farm agent to discuss your coverage options. Our team is here to help you navigate these changes and find the solutions that work best for you.