Allstate to pay Californians millions after controversial damage assessment!

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Allstate to Pay $2.4 Million to California Homeowners Due to Misappraisals; Deadline for objection is November 10, 2025.

Allstate zahlt 2,4 Millionen Dollar an kalifornische Hausbesitzer aufgrund von Fehlbewertungen; Frist für Widerspruch bis 10. November 2025.
Allstate to Pay $2.4 Million to California Homeowners Due to Misappraisals; Deadline for objection is November 10, 2025.

Allstate to pay Californians millions after controversial damage assessment!

Allstate Insurance Company has agreed to pay customers a total of $2.4 million to settle a lawsuit over excessive premiums. This decision follows a class action lawsuit alleging that Allstate manipulated home replacement cost estimates by double counting built-in garage space. Primarily affected are California homeowners who have Allstate policies.

Despite the allegations, Allstate denies any wrongdoing. However, the company decided to settle the lawsuit to avoid high costs of further legal disputes. The payout to eligible homeowners will vary from $20 to $4,248.70 depending on the number of garage spaces, years of insurance, location and premiums paid.

Processing details

All eligible households covered by Project UIN 203019 will automatically receive checks; no claim form is required. The total amount of the settlement is $4 million, of which $1.33 million is for attorneys' fees, $170,000 for expenses, $20,000 to the plaintiff and administrative costs.

Homeowners are advised to update their addresses with the manager if these have changed. **The deadline for opting out or filing objections to the settlement is November 10, 2025.** Final approval of the settlement is scheduled for December 2, 2025. Payouts are expected to be made within 30 days of this approval and any appeals.

Context to the lawsuit

The current developments come at a time when trust in insurance companies' practices is increasingly under scrutiny, particularly when it comes to transparent pricing. In addition to the financial payments, the plaintiffs also hope for a more comprehensive review of Allstate's rating systems to ensure such incidents are avoided in the future.

The increase in disputes in the insurance industry shows the importance of closely reviewing policies and ratings. California homeowners face increased vulnerability to such corporate practices, making such lawsuits increasingly relevant.