For residents across the Great Plains and Midwest, it’s a situation that likely leaves them gritting their teeth in frustration. Hailstorms have been increasing in frequency and intensity, often leaving devastation in their wake. For families whose roofs are destroyed by one of these tempests, there’s comfort in knowing they have homeowners’ insurance for this very reason. Or do they?
Instead of receiving funds for a full roof replacement after a hailstorm, residents in states like Oklahoma are having their insurance claims denied by State Farm over shingle “wear and tear” arguments. In a catch-22 that has to sting, some of them are then told by the insurance company that their homeowner’s policy will be canceled because their roof isn’t functional. As you might imagine, this has led to a bevy of lawsuits filed by Oklahoma homeowners accusing State Farm of instituting an internal program to deny claims and encourage underpayment for roof damage caused by hailstorms and other weather-related events.
While Oklahomans are not the only policyholders engaging in legal battles with insurance companies over denied roof claim payouts, it’s estimated that the state’s residents have over 600 pending lawsuits against State Farm. The settlements reached often include strict confidentiality agreements for the plaintiffs, including a provision that all corporate documents surrendered in discovery must be destroyed or returned to the company. This can deny those pursuing legal action some much-needed ammunition to get a roof back over their heads.
Are You There, Good Neighbor? It’s Me, Homeowner
For many people, a home is the most valuable asset they’ll ever own. A homeowner’s policy protects this investment. The owners enter into a contract with an insurance company that states that, in exchange for monthly or annual premium payments, they’ll receive payments to cover damage to their house from agreed-upon perils that are above their deductible level. While most homeowner’s policies cover fire, hail, and wind damage, you’ll usually have to purchase a separate policy for earthquake or flood losses (if they’re available).
Due to weather conditions brought on by climate change, storms have continued to intensify over the past decade. This has been especially prevalent in hailstorms battering states in the central part of the nation, with studies showing increases in both the number of storms and the size of hailstones. For weather-related insurance filings, hail damage makes up the lion’s share of the claims.
State Farm ranks among the largest players in the insurance industry, with almost 100 million policies in effect as of the end of 2025. It’s a mutual insurance company, which means its policyholders are considered members, and it doesn’t answer to external shareholders like a publicly owned firm. As such, State Farm’s financial goals are to earn enough profit to support future growth and remain financially sound.
Given the number of lawsuits from Oklahoma residents seeking a new roof, the company might have a difficult time convincing its members that it’s staying true to its mission. The spate of complaints filed by angry policyholders accuses State Farm of implementing a new initiative that uses exclusions and definitions for assessing wind and hail damage that aren’t in the customer’s policy copy. This includes forcing adjusters to use these internal parameters when determining whether a home’s roof has suffered enough damage to justify a full replacement.
Those claiming that State Farm has been acting in bad faith to its insureds point to changes in how hail damage to roof shingles is assessed. According to lawsuits, State Farm’s current initiative considers a shingle as destroyed by hail only when it’s completely punched through. Other types of damage, such as cracks or flaking, are considered normal “wear and tear” and are often grounds for denying compensation. With policy termination over the roof’s condition looming, homeowners who can’t fund the repairs themselves may have no other option but to take the insurance company to court.
This Would Be Easier if Hailstorms Would Stop
Lawsuits charging State Farm with breach of contract, fraud, and bad faith aren’t the only issues the insurer is dealing with. Both Oklahoma Attorney General Gentner Drummond and the Oklahoma Insurance Department are looking into the company’s practices. It’s also facing investigations in California over claims from last year’s wildfires.
As homeowner insurance rates skyrocket, the number of people choosing not to renew their coverage is also rising. For those who may be left with nothing but ashes or a home without a roof, it’s a difficult and dangerous decision to have to make.
Related Resources
- Why You Should Buy Homeowners Insurance (FindLaw’s Owning a Home)
- When To Get a Lawyer for Hurricane Damage (FindLaw’s Law and Daily Life)
- How To Understand Your Home Insurance Coverage (FindLaw’s Owning a Home)
