When Allstate adjusted an Arizona property claim, the first check could come with a deduction for depreciation on materials that were not yet replaced. A proposed class settlement in Mohave County Superior Court would pay back part of what was held from certain Arizona policyholders, with interest. Claim forms are due by January 29, 2027, but no money moves unless the judge approves the deal.
What the Hernandez lawsuit says about nonmaterial depreciation
The case is Hernandez v. Allstate Vehicle and Property Insurance Company, No. CV-2026 00048. The settlement website says it concerns “whether Allstate properly deducted Nonmaterial Depreciation when adjusting certain property insurance claims in Arizona.” The representative plaintiff is Lillie Hernandez.
The class notice describes the practice in claim terms. Allstate paid on an Xactimate estimate and withheld nonmaterial depreciation from an actual cash value payment, and the class is built around claims handled that way. The notice does not put a price on the whole practice…