Members of the settlement class do not need to take any action in order to receive their allotted part of the funds, as they will reportedly be processed automatically through Allstate’s systems.
Allstate has agreed to pay a $4 million settlement in a class action suit alleging the insurer double-counted the garage space of some California homes while setting premiums.
The original suit was filed in August 2020, by Tisha Hilario in the District Court for the Northern District of California on behalf of herself and a punitive class who claimed they were charged excessive homeowners insurance premiums by Allstate after their garage spaces were double-counted.
The complaint alleges that Allstate was negligent in these actions, and in violation of the California Unfair and Fraudulent Business Practices Act.
The class action suit received preliminary approval in September, and it includes Californians with Allstate homeowners policies whose homes include a built-in garage. Affected policyholders were included in Allstate’s Project UIN 203019, which was a “corrective action” process from the insurer that increased the recorded square footage of some homes. This led to the square footage of some built-in garage spaces being counted twice when the insurer was determining the “total finished living area” and “total living area” of dwellings.
The class action suit alleges that Allstate’s miscalculations in that process led to inflated premiums for some California homeowners.
Members of the settlement class do not need to take any action in order to receive their allotted part of the funds, as they will reportedly be processed automatically through Allstate’s systems. However, if an affected insured would like to be excluded from the settlement, they must request that exclusion by November 10.
The court will decide whether to grant final approval for Allstate’s settlement at a hearing on December 2, with compensation distribution to begin once final approval has occurred and any appeals are resolved.
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