Allstate Insurance Company might wrongfully deduct administrative costs from benefits due homeowner policy holders when property damage is mold from water damage.

Investigation and pending national class action against Allstate Insurance Company and Allstate Corp., along with their affiliates, based on Allstate's claims adjustment practices under property insurance policies and the policy endorsements which provide limited coverage for mold that occurs in connection with water damage.

This class action lawsuit alleges two claims on behalf of current and former policyholders who have filed mold claims since 2002. First, the action alleges that Allstate improperly deducts its own administrative costs from the benefits due to policyholders, by deducting the costs of the professional mold assessors (typically, certified industrial hygienists), which Allstate uses to test for mold and determine a plan to remove the mold from the premises. Second, the action alleges that Allstate issues a workmanship guarantee to policyholders who agree to use Allstate contractors to clean up water damage at the premises, but Allstate fails to honor the workmanship guarantee whenever faulty workmanship by Allstate's contractors cleaning up the water damage results in mold.

The action seeks to recover the costs of the mold assessors charged to policyholders and the unreimbursed mold damages to policyholders, and also seeks injunctive relief to prohibit Allstate from continuing these practices.