BROKEN ARROW, Oklahoma
Billy and Lacy Hursh couldn’t believe what they were hearing from their insurance company, State Farm.
Release Date
03/11/2026
In October 2023, after a severe hailstorm damaged their roof, two different contractors told them they needed a complete replacement, but their insurance company said the roof was in good condition. Then, eight months later, another storm was even stronger and ripped through their roof.
That dispute eventually escalated into what would become a years-long legal battle that has now reached the state’s highest court.
Hursh said, “The trees are moving sideways, you can hear the hail, and the electricity is flickering.” And the damage to their roof worsened.
The Hurshs called a contractor recommended by State Farm to inspect their roof. Again, they recommended a complete replacement. State Farm acknowledged the roof was damaged but deemed it “minor.” “They said any damage was below the deductible and therefore not covered.”
Fearful of what might happen to their home if another storm hit, the Hursh family decided to pay for the roof repairs out of pocket.
It cost over $22,000, borrowing from their home’s value to cover the expense.
Hursh said, “It makes you feel like a fool. It’s like I was a fool to think the insurance company would honor their end of the bargain. I had no idea how far they were taking advantage of us.”
The Hursh family decided to take action and filed a lawsuit in state court alleging a “widespread, statewide fraudulent scheme” by which State Farm sought to cut costs through “bad faith claims management tactics manipulated against the insured.” Because of the lawsuit, the company developed a “Hail Focus Initiative,” which secretly restricted the definition of hail damage to reduce the number of complete roof replacements covered by State Farm.
“State Farm uses this definition to determine whether a policyholder is entitled to a payout under the policy when filing a valid wind and/or hail claim; however, it is not found anywhere in the policy,” the lawsuit states.
The alleged hidden policy creates a reality where homeowners’ insurance claims are rejected even before they are filed.
The Hursh family and their law firm reported that more than 600 homeowners in Oklahoma have similar pending lawsuits against the company, the state’s number one property insurer.
State Farm denies any wrongdoing, calling the initiative an effort it first undertook in 2020 to improve the accuracy, quality, and consistency of wind and hail claims processing and to address both overpayments and underpayments.
State Farm has paid more than $1 billion to Oklahoma customers for wind and hail damage to their homes and properties.
The Hurshes, along with Oklahoma Attorney General Gentner Drummond, filed a motion to intervene in the case in December, writing: “Oklahoma residents can endure inflation and Oklahoma storms, but they cannot endure a system where they are charged more while actually having less insurance.” “What we have here is what I believe is an intentional scheme to defraud customers,” they wrote. “We have discovered and concluded that State Farm has a scheme to deceive.” “They are violating their duty of good faith and fair dealing with the people of Oklahoma, and that requires me to intervene and hold them accountable.”
State Farm opposed the motion to intervene, arguing that the attorney general’s office lacks the regulatory authority to investigate the company. A state court disagreed and granted Drummond’s motion, giving him the power to investigate. While the case is being resolved in civil court, Drummond has not ruled out the possibility of filing even more serious charges against the company. He stated that his office is investigating potential violations of Oklahoma’s Organized Crime and Corrupt Organizations Act (ORICO).
