this post was submitted on 22 Apr 2025
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Insurers, including State Farm and 24 other companies that hold 75% of California’s home insurance market, were part of an “illegal scheme” in violation of California’s antitrust and unfair competition laws, according to one of the lawsuits, filed last week.

The lawsuit said the companies worked together in 2023 to “suddenly and simultaneously” drop coverage or halt writing new policies in fire-prone areas, including in neighborhoods like Pacific Palisades and Altadena that were leveled in the January wildfires that destroyed nearly 17,000 structures and killed at least 30 people. That has forced hundreds of homeowners onto the FAIR Plan that offers limited coverage capping at $3 million, leaving them underinsured and now struggling to rebuild after the fires, says the lawsuit filed by a group of homeowners who lost their houses in the LA fires.

The other lawsuit includes all policyholders who obtained the FAIR Plan after January 2023, when the conspiracy allegedly began, the suit says.

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[–] Dasus@lemmy.world 3 points 4 months ago (1 children)
[–] ColeSloth@discuss.tchncs.de 2 points 4 months ago

Most of the houses there are over five million d9llars....