Plaintiffs Accuse Insurer of Breach Following Storm Damage

In a dramatic legal battle over insurance claims, RF Housing LLC and RF Holdings Trust have filed a lawsuit against American Family Insurance Company, alleging breach of contract and bad faith. The complaint was filed on February 12, 2026, in the United States District Court for the District of Arizona. The plaintiffs accuse American Family Insurance Company of failing to fulfill its obligations under an insurance policy following severe storm damage to their property.

The case revolves around a property located at 2622 N 30th St, Phoenix, Arizona, which suffered significant damage from a high-velocity windstorm on September 27, 2025. According to the plaintiffs, they had a valid insurance policy with American Family Insurance that was supposed to cover such damages. Despite timely premium payments and the submission of an independent forensic evaluation report by Roof Rider Academy confirming storm-related damage, the insurer allegedly denied full coverage. “Defendant’s conduct deprived Plaintiffs of the security, protection, and benefits for which they paid premiums,” states the complaint.

RF Housing LLC and RF Holdings Trust claim that American Family Insurance acknowledged some level of liability but concluded that damages were below the deductible threshold. They further allege that the insurer issued letters limiting coverage to minimal repairs and denying substantial portions of the claim without adequate justification. The plaintiffs argue that this decision was made despite clear evidence of covered damages exceeding two linear feet on the dwelling roof alone.

The plaintiffs are seeking compensatory damages for economic losses incurred due to the alleged breach of contract by American Family Insurance. They also demand consequential damages resulting from what they describe as bad faith conduct by the insurer. Additionally, they seek punitive damages aimed at punishing American Family Insurance for its alleged willful misconduct and deterring similar actions in future cases.

Represented by attorney Michael Yaakov Katz from Insurance Litigation Group P.A., RF Housing LLC and RF Holdings Trust have demanded a jury trial to resolve these issues. They are calling upon Judge J.T., who is presiding over Case No. 2:26-cv-01002-JJT in Phoenix Division’s District Court of Arizona.