LA lawsuits accuse insurance companies of colluding to ‘suddenly and simultaneously’ drop coverage in fire-prone parts of California

Quick Summary:

The lawsuits come as California is struggling with an ongoing insurance crisis, where companies are boosting rates, limiting coverage or pulling out completely.

The state Department of Insurance said it is not involved in the suits but said its focus is on protecting consumers.“Californians deserve a system that works — one where decisions are made openly, rates reflect real risk, and no one is left without options,” department spokesperson Gabriel Sanchez said in a statement.

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.

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Article Details

Author / Journalist: Trân Nguyễn, The Associated Press

Category: EconomyBusiness

Markets: United StatesMali

Topics: Homeowners insurance California Insurance Los Angeles Lawsuit Wildfires

Source Website Secure: Yes (HTTPS)

News Sentiment: Negative

Fact Checked: Legitimate

Article Type: News Report

Published On: 2025-04-22 @ 09:40:26 (11 hours ago)

News Timezone: GMT +8:00

News Source URL: fortune.com

Language: English

Article Length: 725 words

Reading Time: 5 minutes read

Sentences: 4 lines

Sentence Length: 182 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Fortune

News ID: 28140472

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