State Farm Faces Lawsuit Over Denied Hail and Wind Claims in Alabama | Insurify

Staff WriterThe Courier-Times

Two dozen Alabama homeowners are suing State Farm, alleging the insurer baselessly denied their home insurance claims for wind and hail damage this year.

The policyholders, all of Dothan, are seeking compensation for storm damage following events that occurred between March and June. Plaintiffs in the case range from first-time homebuyers to 20-to-30-year policyholders.

Suit alleges State Farm acted in bad faith

"State Farm knew no lawful basis existed for the denials herein stated and failed to investigate properly," the suit states. The complaint also argues that State Farm misled the plaintiffs by selling them homeowners policies that buyers assumed would include coverage for wind and hail damage.

The suit also includes individual allegations by each member plaintiff. In general, the plaintiffs allege State Farm refused to investigate or cover incidents of roof damage and subsequent water damage brought on by wind and hailstorms.

Most plaintiffs are seeking financial compensation, plus costs and interest, for their losses. Some are also seeking compensation for mental anguish and emotional distress.

Total damages sought range from $18,000 to $20,000 per plaintiff, Gantt Pierce, an attorney for the plaintiffs, told Alabama television station WTVY.

"There's been a lot of damage done — to ceilings, to personal property, to things that are kind of subsequent to your roof being damaged. And by them not taking care of that in short order, it's caused more damage," Pierce told the station.

State Farm has not yet commented on the lawsuit.

What's next: Severe weather affects Alabama home insurance

Alabama is the sixth most expensive state for homeowners insurance, according to Insurify data.

At the end of 2024, the average annual cost of home insurance in Alabama was $5,445, according to Insurify. That average is likely to increase by 7% through the end of 2025, Insurify data analysts predict.

The state's location along the Gulf Coast means properties are at higher risk for damage from hurricanes, which cause more financial damage than any other type of natural disaster. Environmental risks directly affect home insurance rates in an area.