A California federal judge signaled on Wednesday that he is inclined to certify a class of almost 200,000 homeowners in ongoing litigation alleging that State Farm underpays property insurance claims by depreciating sales tax on repairs and replacements. The legal action, which involves homeowners who have made claims with State Farm, centers on the insurance company’s alleged practice of reducing claim payments by depreciating sales tax, potentially leaving policyholders with significant out-of-pocket expenses. The judge’s indication suggests that the case could proceed as a class action, potentially affecting numerous homeowners who have dealt with State Farm regarding property damage claims.
