Two lawsuits in Los Angeles accuse major home insurers, including State Farm, of colluding to limit coverage in California's wildfire-prone areas, violating antitrust laws. The lawsuits claim that in 2023 insurers collectively dropped or paused coverage in these regions, forcing homeowners into the state's FAIR Plan, which provides limited coverage and higher premiums. The lawsuits highlight the struggles of homeowners affected by devastating wildfires and argue that this collusion has deprived them of adequate insurance options while benefiting insurers financially. These legal actions come amid a broader insurance crisis in California.
The lawsuits allege insurers colluded to restrict coverage in high-risk wildfire areas, pushing homeowners towards the limited FAIR Plan amid an ongoing insurance crisis.
According to the lawsuit, insurers suddenly dropped coverage in fire-prone areas, affecting hundreds of homeowners who now lack adequate insurance for rebuilding.
Michael J. Bidart stated that insurers deprive homeowners of necessary coverage by colluding to push them to the FAIR Plan while benefiting from high premiums.
The suits aim to address the alleged illegal scheme that violates California's antitrust laws, impacting thousands of policyholders at risk.
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