BROKEN ARROW, Okla. — Billy Hursh couldn’t believe what he was hearing from his insurance company.
After a hailstorm battered his roof in October 2023, two different contractors told him he needed a full roof replacement, but his insurance company, State Farm, told him the roof was in “fair” condition.
That dispute eventually led to what would become a yearslong legal battle that has now reached the highest court in the state.
Hursh told NBC News during an interview at his home that the first storm was bad enough, but eight months later, an even bigger storm hit.
“The trees are blowing sideways, and you can hear the hail, and the power is flickering on and off,” Hursh remembered.
And the damage to his roof grew worse.
This time, the Hurshes called a State Farm-recommended contractor to come look at their roof. Again, a full replacement was recommended. State Farm did agree the roof was damaged — but deemed it "minor."
“They said that any damage was under the deductible, and therefore not covered,” Hursh said.
Afraid of what could happen to their home if another storm hit, Hursh and his wife, Lacy, decided to pay out of pocket to replace the roof.
“It’s how much pain, how much hardship financially are we willing to take on up front to avoid disaster later on?” he said.
The answer: more than $22,000, borrowing against the equity of their home for the cost.
“It makes you feel like a sucker,” Hursh said. “Like I was foolish to have thought that the insurance company would hold up their end of the bargain.”
“I had no idea the degree to which we were being taken advantage of,” he said.
Allegations of a secret scheme
The Hursh family decided to take action, filing a lawsuit in state court that lays out a “pervasive, state-wide fraudulent Scheme” by which State Farm aimed to cut costs through “bad faith claims handling tactics that are rigged against the insured.”
According to the lawsuit, the company developed a “Hail Focus Initiative” — secretly narrowing the definition of hail damage to reduce the amount of full roof replacements covered by State Farm.
“State Farm uses this definition to dictate whether an insured is entitled to payment under the policy upon the filing of a valid wind and/or hailstorm claim, yet it can be found nowhere in the policy,” the lawsuit says.
The alleged hidden policy essentially creates a reality where homeowners’ insurance claims are denied before they’re even filed.
“This decision reflects simple greed: maximizing profits for State Farm at the expense of its insureds,” the lawsuit argues.
