Erie Insurance Claim Depreciation Settlement

If you are a Pennsylvania policyholder of Erie Insurance Exchange or Erie Insurance Company who filed a structural damage claim and had depreciation deducted from your claim, you may qualify to claim up to 80% plus interest from a class action settlement.

Erie Insurance Exchange and Erie Insurance Company have agreed to pay $1.75 million to settle a class action lawsuit alleging improper deduction of depreciation for labor and other nonmaterial items when adjusting property insurance claims in Pennsylvania.

Who is eligible for a settlement payout?

Class members must meet the following criteria:

• You are a policyholder under any property insurance policy issued by Erie Insurance Exchange or Erie Insurance Company.
• You made a structural damage claim for property located in Pennsylvania during the applicable Class Periods, which was a covered loss.
• Your claim resulted in an actual cash value payment from which Nonmaterial Depreciation was withheld, or you would have received a payment but the withholding of Nonmaterial Depreciation caused the loss to drop below the applicable deductible.

Class periods are as follows:

• Residential policyholders of Erie Insurance Company: Loss occurred between May 8, 2022, and September 5, 2023.
• Residential policyholders of Erie Insurance Exchange: Loss occurred between May 19, 2022, and September 5, 2023.
• Commercial policyholders of Erie Insurance Company: Loss occurred between May 8, 2021, and September 5, 2023.
• Commercial policyholders of Erie Insurance Exchange: Loss occurred between May 19, 2021, and September 5, 2023.

Class exclusions

These policyholders are excluded from the settlement:

• Policyholders whose policy forms explicitly permitted deduction of nonmaterial depreciation.
• Policyholders who received actual cash value payments that exhausted their insurance limits.
• Policyholders whose claims were denied or did not result in actual cash value payments.

How much is the class action payment?

• Claimants can receive a cash payment equal to 80% of the nonmaterial depreciation withheld and not later paid. Additionally,
• Claimants will also receive a single interest award ranging from $25 to $500. The amount will be determined by the total amount of nonmaterial depreciation withheld from the claim.

How to claim your settlement payout

To claim your class action rebate, you must submit a claim form.. You can file a claim online or download the PDF claim form to print and mail to the settlement administrator.

Settlement Administrator's mailing address: Settlement Administrator c/o Rust Consulting, Inc. - 8807, PO Box 2599, Faribault, MN 55021-9599.

Completed claim forms must be must be postmarked or submitted online by May 30, 2025.

Required proof and information

• Claimant ID number from notice require to submit an online claim.
• Policy number, claim number, date of loss, and insured property address must be included.
• If your claim was assigned to a contractor, you must include the name and address of the contractor to whom the insurance claim was assigned, when, and why.
• A copy of the contract or other written evidence of the assignment must be included with the claim form.

Claim payment options

Payments will be issued in the form of a check mailed to the address provided on the claim form.

Class action settlement fund

The settlement fund breakdown is as follows:

• Attorneys' fees and expenses: Up to $1,750,000
• Service awards to class representatives: $7,500 each
• Payments to valid claimants: 80% of withheld depreciation plus $25 to $500 interest
• Settlement administration costs: Paid separately by Erie Insurance

Important dates

• Final Approval Hearing: April 11, 2025
• Deadline to File a Claim: May 30, 2025

When is the Erie Insurance settlement payout date?

The final approval hearing is scheduled for April 11, 2025. Claims will be processed and payments will be issued to class members with approved claims after the court grants final approval to the settlement.

Why did Erie Insurance agree to a settlement?

The class action lawsuit alleged that Erie Insurance improperly deducted depreciation for labor and other nonmaterial items from property insurance claims. Erie Insurance denies wrongdoing but agreed to settle to avoid the cost of continued litigation.

Sources

1. Official Settlement Website FAQ
2. Settlement Agreement Document