A US insurance giant is preparing to hand millions of dollars to homeowners to settle claims that it overcharged premiums for years.
Allstate Insurance Company has agreed to settle a class action lawsuit alleging the company inflated replacement cost estimates by mistakenly including built-in garage space twice in calculations.
This led to higher premiums for affected California homeowners. Allstate says it denies wrongdoing but settled to avoid further litigation costs.
Eligible class members are California homeowners with Allstate policies impacted by Project UIN 203019, which corrected the square footage errors.
Payments range from $20 to $4,248.70 based on garage bays, policy years, location, and premiums paid.
No claim form is required and checks will be mailed automatically.
The total settlement fund is $4 million, which will include $1.33 million in attorney fees, $170,000 in expenses, a $20,000 award to the plaintiff and administration costs.
Homeowners must update addresses with the administrator if changed.
The deadline to opt out or object is November 10, 2025 and the final approval hearing is December 2, 2025.
Payouts typically follow about 30 days after approval and any appeals.
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