In the wake of the January 2025 LA wildfires, many homeowners found that they were underinsured. (Credit: Pierce/Adobe Stock)

California homeowners affected by January’s Los Angeles wildfires have filed suits against USAA and AAA, alleging both insurers participated in "systemic" fraud by deceiving policyholders about the extent of their coverage.

The complaints, both filed by law firm Bentley & More, are nearly identical aside from which insurer is mentioned. They claim that both AAA and USAA represent to their insureds that their agents possess the expertise to help determine the cost to rebuild their homes and ensure all of their features are properly covered. However, in the wake of the LA wildfires, many insureds who had taken their advice found that they were underinsured.

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Brittney Meredith-Miller

Brittney Meredith-Miller is assistant editor of PropertyCasualty360.com. She can be reached at [email protected].