Latest news with #RobertRuyak
Yahoo
22-05-2025
- Business
- Yahoo
Insurance companies hit with lawsuit from families devastated by California fires: 'Refusing to compete with each other'
After wildfires rocked multiple Los Angeles neighborhoods in January, families have struggled to rebuild. Many found themselves without enough home insurance — and now, some are suing the huge companies they say are responsible for leaving them in the lurch, according to A group of 14 families has banded together against some of the biggest insurance companies in the game, including State Farm and Farmers. As explained, the lawsuit claims that these companies broke California's antitrust and competition laws by acting in unison to terminate the insurance plans of people who lived in fire-risk areas. Then, they allegedly all refused to sell new policies in those areas and, instead, directed people to the state's backup insurer, the Fair Access to Insurance Requirements. The thing is, FAIR is a last-resort plan. Traditional insurers help fund it, but its policyholders pay more money than usual for substandard protection, reported. The plaintiffs in the suit will argue that starting in 2023, the insurance giants pushed people into FAIR — or out of coverage completely — and that this set the stage for the nightmare unfolding in the aftermath of the destructive fires. "[Insurers] realized that … by working together and all refusing to compete with each other for those policies, they could force everybody into this other plan that they jointly managed and owned and do better," Robert Ruyak, attorney for the plaintiffs, told These kinds of unfair policies create a coverage gap that is catastrophic in the event of extreme weather. Remember, these intense disasters are only becoming more frequent as a result of our dirty energy sources heating up the planet. The L.A. fires caused about $30 billion in real estate losses. As the plaintiffs' case shows, many families suffering high property damages would have been covered under their old policies, but they aren't under FAIR, Ruyak explained to This lawsuit may aim to recover funds for the 14 families, which would help them rebuild their homes and their lives. A class-action lawsuit was also filed on behalf of any homeowner left vulnerable under the FAIR Plan, reported. Do you think America is in a housing crisis? Definitely Not sure No way Only in some cities Click your choice to see results and speak your mind. You can also personally support wildfire victims through several different key organizations. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Yahoo
23-04-2025
- Business
- Yahoo
California homeowners allege home insurance companies colluded to deny coverage
LOS ANGELES — A group of California homeowners is taking on insurance companies that they say illegally coordinated to deny coverage to fire-prone areas, leaving thousands of displaced residents drastically underinsured as they fight for funding to rebuild. The homeowners, many of whom were affected by the recent wildfires that torched large swaths of Los Angeles, have filed a lawsuit alleging that California insurance companies colluded in a 'nefarious conspiracy' to shut out high-risk homeowners from the insurance market. The complaint, filed Friday in Los Angeles County, accuses dozens of major insurance companies and their subsidiaries of collaborating in a 'group boycott' of certain areas to eliminate competition and force homeowners toward the state's insurer of last resort, a program known as the California FAIR Plan. The lawsuits name California's largest home insurers, including State Farm, Farmers, Berkshire Hathaway, Allstate and Liberty Mutual. None of them have provided a comment on the allegations. The FAIR Plan has its own reserves and is intended to provide basic insurance to residents who cannot find a policy through the private marketplace. While it was created by the governor and the Legislature, and the state's insurance commissioner has oversight, it is not a public program. The insurance companies named in the lawsuit jointly own and operate the FAIR plan, offering terms that limit their risk and place a higher burden on policyholders. 'They knew that they could force people, by dropping insurance, into that plan which had higher premiums and far lower coverages,' Robert Ruyak, an attorney with Larson LLP, the law firm that brought the complaint, said. 'They realized that they could take this device, which is to protect consumers, and turn it into something that protected them.' Ruyak argues the insurance companies knew they could limit their liability by directing policyholders onto the FAIR Plan, which allows companies to recoup up to half of their losses through premium increases, by agreeing that no company would insure high-risk areas. 'All of these insurance companies participate in the California FAIR Plan. They own it and manage it. It is not a California entity, it is not even a separate entity … the only way this scheme would work is if no one would pick up a dropped policy at any price, on any terms. And that's what happened.' Millions of U.S. homeowners have in recent years struggled to buy property insurance as companies have increasingly declined to offer coverage to people who live in high-risk areas, particularly as climate change has supercharged some natural disasters. An NBC News analysis in 2023 found that a quarter of all U.S. homes may be at risk of a climate-induced insurance shock. California has been among the hardest hit by what some have called an 'insurance crisis.' The state's FAIR Plan, meanwhile, has been the subject of growing scrutiny and frustration from insurance regulators and customers. The plaintiffs are asking for a jury trial and seeking payment for three times their damages. A separate class-action lawsuit filed Friday makes similar allegations. This article was originally published on
NBC News
23-04-2025
- Business
- NBC News
California homeowners allege home insurance companies colluded deny coverage
LOS ANGELES — A group of California homeowners is taking on insurance companies that they say illegally coordinated to deny coverage to fire-prone areas, leaving thousands of displaced residents drastically underinsured as they fight for funding to rebuild. The homeowners, many of whom were affected by the recent wildfires that torched large swaths of Los Angeles, have filed a lawsuit alleging that California insurance companies colluded in a 'nefarious conspiracy' to shut out high-risk homeowners from the insurance market. The complaint, filed Friday in Los Angeles County, accuses dozens of major insurance companies and their subsidiaries of collaborating in a 'group boycott' of certain areas to eliminate competition and force homeowners toward the state's insurer of last resort, a program known as the California FAIR Plan. The lawsuits name California's largest home insurers, including State Farm, Farmers, Berkshire Hathaway, Allstate and Liberty Mutual. None of them have provided a comment on the allegations. The FAIR Plan has its own reserves and is intended to provide basic insurance to residents who cannot find a policy through the private marketplace. While it was created by the governor and the Legislature, and the state's insurance commissioner has oversight, it is not a public program. The insurance companies named in the lawsuit jointly own and operate the FAIR plan, offering terms that limit their risk and place a higher burden on policyholders. 'They knew that they could force people, by dropping insurance, into that plan which had higher premiums and far lower coverages,' Robert Ruyak, an attorney with Larson LLP, the law firm that brought the complaint, said. 'They realized that they could take this device, which is to protect consumers, and turn it into something that protected them.' Ruyak argues the insurance companies knew they could limit their liability by directing policyholders onto the FAIR Plan, which allows companies to recoup up to half of their losses through premium increases, by agreeing that no company would insure high-risk areas. 'All of these insurance companies participate in the California FAIR Plan. They own it and manage it. It is not a California entity, it is not even a separate entity … the only way this scheme would work is if no one would pick up a dropped policy at any price, on any terms. And that's what happened.' Millions of U.S. homeowners have in recent years struggled to buy property insurance as companies have increasingly declined to offer coverage to people who live in high-risk areas, particularly as climate change has supercharged some natural disasters. An NBC News analysis in 2023 found that a quarter of all U.S. homes may be at risk of a climate-induced insurance shock. California has been among the hardest hit by what some have called an 'insurance crisis.' The state's FAIR Plan, meanwhile, has been the subject of growing scrutiny and frustration from insurance regulators and customers. The plaintiffs are asking for a jury trial and seeking payment for three times their damages.
