Robertson, et al. v. Farmers Union Mutual Insurance Co.

PWR has filed a class action complaint against Farmers Union Mutual Insurance Company, alleging that Farmers Union is improperly depreciating the cost of labor when adjusting property damage claims.

After having much of their home destroyed by a tornado, the Robertsons submitted a property damage claim to their insurance company, Farmers Union Mutual Insurance Company. Farmers Union had issued previously an Actual Cash Value policy of homeowners’ insurance. Pursuant to the ACV policy, Farmers Union was permitted to depreciate the cost of the materials needed to repair the Robertson’s home. The Robertson’s later discovered that Farmers Union was also depreciating the cost of the labor necessary to install the materials needed to repair the home in direct violation of the policy.

Update: On February 9, 2009, the Hon. Dennis Sutterfield certified a class of Arkansas residents who had submitted property damage claims to Farmers Union. The Court's order can be accessed at the link above.

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