June 4 – Wildfire Victims Sue AAA and USAA for Selling Inadequate Coverage

Fire victims in Los Angeles County have filed lawsuits against AAA and USAA, accusing the insurers of knowingly underinsuring their homes and leaving them unable to rebuild after the Jan. 7 wildfires. The suits allege the insurers used flawed cost estimate tools and misleading practices to sell inadequate coverage, while still collecting full premiums. As a result, many families discovered—too late—that their insurance wouldn't come close to covering the true cost of rebuilding, which now exceeds $800 per square foot in some areas. The lawsuits claim fraud, negligence, and breach of contract, and call for damages and systemic reform to prevent other homeowners from facing the same crisis.