Los Angeles, California – A group of homeowners affected by the devastating January wildfires in Los Angeles County has filed lawsuits against some of California’s largest insurance companies, including State Farm, accusing them of violating the state’s antitrust and unfair competition laws by colluding to push customers into limited-coverage policies.
The lawsuits, filed Saturday in Los Angeles Superior Court, claim that major insurers conspired to reduce competition and drive homeowners into the California FAIR Plan — the state’s insurer of last resort — which offers less coverage at higher premiums. A separate class action lawsuit was also filed the same day, echoing these allegations.
In a statement, attorney Michael J. Bidart of Shernoff Bidart Echeverria LLP said insurers “reaped the benefits of high premiums while depriving homeowners of coverage” they were willing and able to pay for. The lawsuits name State Farm and other top carriers required to support the FAIR Plan…