April 21 - Lawsuits Allege Insurers Colluded to Drop Coverage in Fire-Prone Areas

Two new lawsuits filed in Los Angeles claim that major home insurance companies, including State Farm, worked together to stop offering coverage in California areas at high risk for wildfires. The lawsuits accuse 25 insurers of violating antitrust laws by suddenly dropping or limiting policies in communities devastated by recent fires, forcing thousands of homeowners onto the FAIR Plan — a last-resort insurance option with high premiums and limited protection. As a result, many fire survivors are now underinsured and unable to fully rebuild their homes.