A group of California homeowners are suing CSAA Insurance Exchange for allegedly underinsuring their homes, according to a report by the Petaluma Argus-Courier.
The homeowners filed the lawsuit, which is related to last year's wildfires in the Golden State, in Sonoma County Superior Court, accusing the insurer of committing negligence and fraud in their homeowners policies for years. CSAA Insurance Exchange allegedly underestimated the real costs of rebuilding the policyholders' homes after a natural disaster, the publication said.
The lawsuit also reportedly claims that CSAA Insurance Exchange also changed the terms of the policies, without properly informing the homeowners, to make them responsible for updating the coverage they would need to rebuild depending on current construction costs.
A CSAA spokeswoman in a statement to the newspaper said the 2017 wildfires had a devastating impact on certain communities and that the insurer takes all policyholder concerns seriously.
CSAA Insurance Exchange is the Northern California insurance arm of American Automobile Association Inc.