California homeowners are initiating a class action lawsuit against numerous insurance companies, alleging that these companies established an illegal scheme to bolster profits by dropping clients and minimizing coverage. The lawsuit claims that insurers are colluding to steer homeowners to the costly FAIR Plan, which is less comprehensive. Lawyers for the plaintiffs argue that this scheme benefits the insurers while denying consumer access to necessary coverage. Major companies like State Farm and Allstate are implicated, and similar claims have arisen from wildfire victims, emphasizing the inadequacy of current insurance offerings.
By colluding to push plaintiffs and so many like them to the FAIR Plan, the defendants have reaped the benefits of high premiums while depriving homeowners of coverage.
The class action lawsuit seeks unspecified damages for hundreds of thousands of homeowners statewide, alleging illegal schemes by insurers to boost profits through reduced coverage.
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