William Young et al v. The Allstate Company

On January 26, 2024, the California jury returned a $97,497.57 verdict in favor of William and Kelly Young after their insurance company, Allstate Insurance Company was found liable for intentional misrepresentation of the insurance contract.

Case Background

On May 1, 2020, William and Kelly Young filed a lawsuit against Allstate Insurance Company for intentional misrepresentation before the California Central District Court. This case was assigned to Judge Terry J. Hatter, Jr and referred to Magistrate Judge Pedro V. Castillo. [Case number: 2:20-cv-04048]

Cause

William and Kelly Young, a married couple, purchased a homeowner’s insurance policy from Allstate Insurance Company (“Allstate”), believing it would cover the rebuilding of their home if destroyed by wildfire. In November 2018, the Youngs lost their home in the Woolsey Fire. They soon discovered that Allstate had significantly misled them about their ability to rebuild the home for the amount previously stated. For over thirty years, the Youngs relied on their friend, a long-time Allstate agent, to determine their insurance needs. They frequently informed the agent, and later his son, another Allstate agent, that they had no idea about the cost to rebuild their house in the event of total loss. Both agents assured them that their policy limits were adequate. Trusting these assurances, the Youngs continued to renew their policies based on this information. After the fire, the agents admitted they were unsure of the actual rebuild costs. They revealed that Allstate had used a formulaic estimate, which was known to be inadequate. All