West Bend Mutual Settlement Ends Lawsuit Over Allegedly Improper Nonmaterial Depreciation Deductions

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West Bend Mutual has agreed to settle a class action lawsuit that alleged that the insurance company wrongfully deducted “nonmaterial depreciation” from structural loss claims on both personal and commercial property policies in certain states.

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The West Bend Mutual class action settlement received preliminary approval from the court on September 9, 2025 and covers policyholders who had personal or commercial insurance policies, made a structural loss claim in one of the Class States (listed below) during the relevant time periods, received an “Xactimate” estimate to determine their actual cash value (ACV) payment, and were issued an ACV payment that improperly counted for “Nonmaterial Depreciation,” causing its value to drop.

According to the settlement agreement, the Class States and applicable time periods covered by the class action settlement include:

• Dates of loss between March 29, 2020 and June 30, 2022 for policyholders with structural loss claims in Illinois, Kentucky, Ohio, Tennessee, Virginia and Wisconsin; and
• Dates of loss between March 29, 2012 and June 30, 2022 for policyholders with structural loss claims in Missouri.

Importantly, the agreement explains that “nonmaterial depreciation” refers to the depreciation of labor costs, overhead and other non-material items calculated within the estimating software, and “structural loss” refers to physical damage to a building or structure covered by West Bend Mutual’s property insurance policies.

The court-approved website for the West Bend Mutual settlement can be found at https://NoJokeDepreciationSettlement.com/.

According to the settlement website, West Bend Mutual settlement class members who submit a valid, timely claim form are eligible to receive a one-time cash payment calculated based on the state in which a policy was held and whether nonmaterial depreciation was paid.

Class members with policies issued in Illinois, Kentucky, Missouri, Ohio or Tennessee and who submit a valid claim form are eligible to receive up to 100 percent of the nonmaterial depreciation West Bend Mutual allegedly withheld and failed to pay (or the amount that a respective class member would have received if the nonmaterial depreciation had not pushed their loss below the deductible), plus a five-percent interest rate per year starting from the date they were issued their final ACV payment through July 1, 2025.

Class members with policies issued in Virginia or Wisconsin and who submit a valid claim form are eligible to receive 80 percent of the nonmaterial depreciation West Bend Mutual allegedly withheld (or the amount that a respective class member would have received if the nonmaterial depreciation had not pushed their loss below the deductible), plus a five-percent interest rate per year starting from the date they were issued their final ACV payment through July 1, 2025.

For class members with policies in either group and whose nonmaterial deductions were initially withheld from ACV payments but were subsequently paid, their settlement payout is based on the following schedule: 

• Nonmaterial depreciation amounted to $1 to $5,000.99: $25
• Nonmaterial depreciation amounted to $5,001 to $10,000.99: $50
• Nonmaterial depreciation amounted to $10,001 to $20,000.99: $100
• Nonmaterial depreciation amounted to $20,001 to $40,000.99: $200
• Nonmaterial depreciation amounted to $40,001 to $60,000.99: $300
• Nonmaterial depreciation amounted to $60,001 to $80,000: $400
• Nonmaterial depreciation amounted to over $80,000: $500

To submit a West Bend Mutual settlement claim form online, class members can head to this page and enter the class member ID and pin found on their copy of the settlement notice. Consumers who believe they may be a class member but did not receive a settlement notice should contact the settlement administrator to confirm their identity and receive their login ID.

Alternatively, class members may download a PDF of the claim form to print, fill out, and return by mail to the address listed near the bottom of the document.

All West Bend Mutual class action settlement claim forms must be submitted online or by mail by February 6, 2026.

The court will determine whether to grant final approval to the West Bend Mutual settlement at a hearing on January 7, 2026. Compensation will begin to be distributed to class members only after final approval is granted and any appeals are resolved.

The West Bend Mutual class action lawsuit alleged that the insurance provider unlawfully depreciated nonmaterial costs like labor, overhead, and profit when paying ACV on structural loss claims and supposedly withheld money from consumers.

Did you know that some class action settlements require no proof to submit a claim? Check out the latest class action settlements.