Homeowners Hit Farmers Group Over Fire Claims

Law360, New York (February 17, 2010, 1:45 PM EST) -- Scores of homeowners have filed a breach of contract and damages suit against Farmers Group Inc. in a Los Angeles court, claiming that the insurer underpaid or denied claims in bad faith after fires ravaged Southern California in 2008.

The lawsuit, filed Tuesday in Los Angeles County Superior Court, says the Los Angeles-based insurer failed to reimburse 173 homeowners whose policies specifically provide coverage of direct physical loss or damage to their homes.

The lawsuit claims, among other things, that the insurer hired biased adjusters who...
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