Californians Sue State-Backed Insurer for Inadequate Coverage
The number of homeowners that rely on the FAIR plan has grown exponentially as private insurers have cut their business in the state citing the increased frequency and severity of wildfires.
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California’s state-backed insurance plan has failed to provide adequate coverage for hundreds of thousands of homeowners living in wildfire zones, according to a new lawsuit.
The suit, filed in Alameda County Superior Court, alleges that the policies provided by California’s FAIR plan — the state’s insurer of last resort — fell short of the minimum coverage required by state law. It is seeking class-action status on behalf of 350,000 policyholders who may have been denied payouts for damages related to fire and smoke.