ByAlameda County District Attorney Pamela Price claims insurers are defrauding homeowners, engaging in unlawful business practices.Alameda County District Attorney Pamela Price came out swinging Tuesday against insurance companies accusing them of "operating a widespread scheme" on California consumers, leaving them underinsured in a disaster like a wildfire.
"These insurance companies have utilized a software application that allows them to essentially defraud homeowners. One of the features of the 360 value software that we are alleging improperly estimates the replacement cost is that it's based on zip code, so it's another way of redlining," said Price.
The lawsuit was filed three weeks ago by the DA's office says they still have not gotten a response from the targeted insurance companies.State's wildfire insurance crisis is so bad, even CAL FIRE stations are struggling to get coverage"If an insurance company chooses not to unfairly cheat residents of California then that's a good thing that opens the door to insurance companies that are willing to comply with California law," said Price.