underinsured

Each of the homeowners had policies with State Farm, and some were underinsured by more than $2 million when their homes were completely destroyed by the Palisades and Eaton fires.

Six couples and one individual who lost their homes in the devastating Los Angeles fires are suing State Farm, claiming that they were “misled” by the insurance company and that their homes were deliberately and “grossly underinsured.”

This marks the second time L.A. fire victims have sued insurers because they believe they were systematically underinsured.

In 2022, the department completed an exam into whether the company’s underwriting practices left policyholders underinsured after wildfires in 2015 and 2017, which destroyed more than 14,000 homes and other structures.

A group of California homeowners filed suit Wednesday against AAA and USAA, alleging that the insurers left them systematically underinsured and unable to rebuild after the Jan. 7 firestorms in Los Angeles County destroyed their homes.