Insurers Facing Heat Under Unfair Competition Law Over Coverage Cuts

While fire crews continue to battle the fires ravaging Southern California, focus has begun to shift towards rebuilding communities lost to the flames. Property insurance has taken the spotlight, and frustration is mounting with insurers that decided last year not to renew policies in communities needing them the most.¹ Homeowners affected by the reduction in coverage may find themselves looking for restitution under California's Unfair Competition Law.²

Like the recent fires, the 1994 Northridge earthquake devastated the community, leaving thousands displaced and turning to their homeowners' policies. Insurance companies paid a reported $15.3 billion in the aftermath of the quake.³ However, many homeowners were surprised to learn that their earthquake endorsements had been terminated. Still others were unable to obtain home coverage of any kind after the quake.