Liberty Mutual Depreciation Settlement: Texas Claims Due March 17, 2027

A class action accuses Liberty of improperly deducting what's called "Nonmaterial Depreciation" from Texas home and property damage claims, reducing payouts not just for materials, but also for labor, equipment, removal, and overhead and profit, using Xactimate or Symbility estimating software. Liberty denies any wrongdoing but agreed to settle rather than continue fighting the case in court.

The settlement has not been finalized. The Court granted preliminary approval on July 24, 2026, and a Final Approval Hearing is scheduled for December 17, 2026, where the Court will decide whether to approve it fully. Payments will only be issued if the settlement receives final approval and survives any appeals.

You may be eligible if you held a personal (not business) property policy with Liberty and filed a claim for damage to your home or another structure between May 25, 2020 and May 5, 2025, specifically a claim where Liberty used Xactimate or Symbility and withheld Nonmaterial Depreciation from your actual cash value (ACV) payment. You can also qualify if that withheld depreciation dropped your loss below your deductible, meaning you received no ACV payment at all. Some policyholders are excluded, such as those whose policies specifically allowed labor depreciation, or whose payments already exhausted their policy limits.

Payout amounts vary by situation. If the withheld depreciation was never reimbursed, you can recover 51.5% of the Nonmaterial Depreciation withheld, plus 4.875% simple interest. If Liberty already repaid the withheld depreciation in full, you'll instead receive a flat payment ranging from $25 to $500, depending on how much Nonmaterial Depreciation was involved. Attorneys' fees and administrative costs are paid separately and won't reduce your payment.

To see if you're included, check for the Class Notice and Claim Form mailed to you by the Claims Administrator. Your Claim Form includes a 10-character "Unique ID" and a 4-digit "PIN", if you've misplaced these, click "Where can I find my login information?" on the claim login page.

When filing, you'll confirm pre-filled details like your name, address, policy number, claim number, and date of loss, then sign and date to verify accuracy. No receipts or additional proof are required in most cases. Extra documentation is needed only if you're filing on behalf of someone who has died or cannot file themselves (you'll need written proof of your status as Legally Authorized Representative), or if the claim was assigned to another party, like a contractor (you'll need a copy of that assignment agreement). After filing online, you'll receive a confirmation code by email, save it.

If your Claim Form is incomplete, the Administrator may reach out, giving you 30 days to correct it. If your payment includes enough interest to trigger tax reporting requirements, you may also be asked to submit a Form W-9.