Sport Investors League
  • Politics
  • Stocks
  • Investing
  • Business

Sport Investors League

  • Politics
  • Stocks
  • Investing
  • Business
Business

California homeowners allege home insurance companies colluded to deny coverage

by admin April 28, 2025
April 28, 2025
California homeowners allege home insurance companies colluded to deny coverage

LOS ANGELES — A group of California homeowners is taking on insurance companies that they say illegally coordinated to deny coverage to fire-prone areas, leaving thousands of displaced residents drastically underinsured as they fight for funding to rebuild.

The homeowners, many of whom were affected by the recent wildfires that torched large swaths of Los Angeles, have filed a lawsuit alleging that California insurance companies colluded in a “nefarious conspiracy” to shut out high-risk homeowners from the insurance market.

The complaint, filed Friday in Los Angeles County, accuses dozens of major insurance companies and their subsidiaries of collaborating in a “group boycott” of certain areas to eliminate competition and force homeowners toward the state’s insurer of last resort, a program known as the California FAIR Plan.

The lawsuits name California’s largest home insurers, including State Farm, Farmers, Berkshire Hathaway, Allstate and Liberty Mutual. None of them have provided a comment on the allegations.

The FAIR Plan has its own reserves and is intended to provide basic insurance to residents who cannot find a policy through the private marketplace. While it was created by the governor and the Legislature, and the state’s insurance commissioner has oversight, it is not a public program. The insurance companies named in the lawsuit jointly own and operate the FAIR plan, offering terms that limit their risk and place a higher burden on policyholders.

“They knew that they could force people, by dropping insurance, into that plan which had higher premiums and far lower coverages,” Robert Ruyak, an attorney with Larson LLP, the law firm that brought the complaint, said. “They realized that they could take this device, which is to protect consumers, and turn it into something that protected them.”

Ruyak argues the insurance companies knew they could limit their liability by directing policyholders onto the FAIR Plan, which allows companies to recoup up to half of their losses through premium increases, by agreeing that no company would insure high-risk areas.

“All of these insurance companies participate in the California FAIR Plan. They own it and manage it. It is not a California entity, it is not even a separate entity … the only way this scheme would work is if no one would pick up a dropped policy at any price, on any terms. And that’s what happened.”

Millions of U.S. homeowners have in recent years struggled to buy property insurance as companies have increasingly declined to offer coverage to people who live in high-risk areas, particularly as climate change has supercharged some natural disasters. An NBC News analysis in 2023 found that a quarter of all U.S. homes may be at risk of a climate-induced insurance shock.

California has been among the hardest hit by what some have called an “insurance crisis.” The state’s FAIR Plan, meanwhile, has been the subject of growing scrutiny and frustration from insurance regulators and customers.

The plaintiffs are asking for a jury trial and seeking payment for three times their damages. 

A separate class-action lawsuit filed Friday makes similar allegations.

This post appeared first on NBC NEWS

0
FacebookTwitterGoogle +Pinterest
previous post
Amazon and Nvidia say AI data center demand is not slowing down
next post
Silver Crown Royalties Announces Closing of Final Tranche of its Non-Brokered Private Placement

Related Posts

Inflation and $2,000 camps are creating a summer...

July 25, 2024

The White Stripes sue Trump for using ‘Seven...

September 11, 2024

Kraft Heinz to remove artificial dyes from U.S....

June 18, 2025

As Joann Fabrics and JCPenney announce store closings,...

February 18, 2025

Pennsylvania Sen. Casey warns Amazon, Target and Walmart...

June 24, 2024

Renters’ hopes of being able to buy a...

May 8, 2024

Disney rolls out line-skipping park passes costing up...

October 18, 2024

Amazon gets FAA approval for new delivery drone...

November 7, 2024

Vanguard fined more than $100 million by SEC...

January 18, 2025

Peloton announces Ford exec, founder of Apple Fitness+...

November 2, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent

    • US sanctions Palestinian Authority officials after rejecting global push to give it control of Gaza

      August 1, 2025
    • US, UK and a dozen other nations call out Iran attempts to ‘kill, kidnap, harass’ citizens

      August 1, 2025
    • Banned chemicals found in American shampoo, sunscreen and tampons across major brands

      August 1, 2025
    • Homesick GOP senators mull throwing out the rules over stonewalling Dems

      August 1, 2025
    • Trump backs stock trading ban so lawmakers like Pelosi can’t continue ‘ripping off’ constituents, WH claims

      August 1, 2025

    Categories

    • Business (1,046)
    • Investing (2,743)
    • Politics (3,370)
    • Stocks (1,155)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: sportinvestorsleague.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 sportinvestorsleague.com | All Rights Reserved