Diminished Value Claims Under Homeowners Coverage Certified In Georgia Class Action

The court in Thompson v. State Farm Fire & Cas. Co., 2016 U.S. Dist. LEXIS 30308 (D. Ga. 2016), recently issued a mixed ruling on class certification regarding diminished value claims for Georgia homeowners. The plaintiffs sought certification for breach of contract claims against an insurer, as well as claims for breach of duties created by the homeowners insurance policy. The court certified a class of insureds for claims based on the insurer’s alleged breach of duty to assess damaged property for diminished value, but declined to certify a class on a separate claim for breach of duty to pay for diminished value.

In Thompson, the lead plaintiffs owned a Georgia townhouse insured by State Farm under a homeowners policy. The plaintiffs’ home suffered water damage from a burst pipe, and State Farm paid for repairs to the damaged areas. State Farm did not, however, assess whether the repaired home was diminished in value after the repairs were made, and refused to pay