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Insurers colluded to limit coverage in California areas at high risk for wildfires, lawsuits allege

22 April 2025
in USA
0
Insurers colluded to limit coverage in California areas at high risk for wildfires, lawsuits allege
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Summary

Two lawsuits in Los Angeles allege that major home insurance companies, including State Farm, colluded to limit coverage in wildfire-prone areas of California, pushing homeowners onto the state’s FAIR Plan, which offers limited coverage and high premiums. The lawsuits claim this “illegal scheme” violates antitrust laws, as insurers halted new policies in areas affected by recent wildfires, leaving many underinsured. As California faces an ongoing insurance crisis, the FAIR Plan now has over 555,000 policies, more than double from 2020, amid rising premiums and limited options for homeowners.

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Tags: allegeareasCaliforniaCalifornia Department of InsuranceCalifornia WildfirescolludedcoverageHighHomeowners InsuranceinsurersLawsuitslimitriskWildfires
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