3 days 4 hr agoMay. 29, 2025 6:46 pm
Two lawsuits have been filed in Los Angeles County courts that accuse property insurers of engaging in what they are calling a “group boycott.” Companies like State Farm, Farmers, and Mercury are said to have engaged in unfair practices that violate the Cartwright Act, a state law that forbids anticompetitive agreements.
The companies in question terminated policies in Pacific Palisades, Malibu, Altadena and other areas at high risk of fire damage back in 2023. This action forced homeowners to look for property insurance under the state sponsored FAIR Plan, which has limited coverage. One of those limitations was a $3 million cap on coverage for dwellings, which cost homeowners when fires destroyed their houses earlier this year.
Experts are not optimistic about the plaintiffs’ chances of winning the cases, It is often hard to provide sufficient evidence to prove the kind of deliberate action needed in these antitrust cases. But the cases do force these companies to explain their decisions to cease covering certain areas and, at the very least, will make them think twice about dropping homes from their portfolio without an explicit, valid reason.
Los Angeles Times
