NU Online News Service, Aug. 30, 2:01 p.m. EDT
Farmers Insurance Group is being sued by more than 1,000 victims of the Station Fire in California who allege the insurer acted in bad faith and "unjustifiably and unreasonably" failed to pay or underpaid claims.
The suit, filed in the state Superior Court in Los Angeles, alleges Farmers "failed to thoroughly and objectively investigate plaintiffs' claims and pay full policy benefits."
The Station Fire occurred about a year ago and burned more than 160,000 acres, destroying about 200 structures including nearly 90 homes. Damages sought are not specified, but the lawsuit states the plaintiffs should be entitled to punitive damages and attorneys' fees.
The plaintiffs in the lawsuit said their properties suffered soot, ash, char and wind damage. They said they were victims of Farmers' alleged unfair claims practices, including allegedly hiring consulting firm Accenture and other investigators "who assisted in implementing bad faith claims practices which were utilized in handling and improperly denying benefits" to homeowners, according to the lawsuit.
Farmers spokesman Jerry Davies stated, "Farmers claims professionals investigated claims through initial inspections and, when appropriate, employed the expertise of independent environmental hygienists and laboratories to assist us in evaluating whether damage occurred. Once covered damage was found, the claim was adjusted."
He added that Farmers has paid more than 2,000 customers for claims related to the Southern California wildfires in 2009.
A spokesperson for Accenture said the company is not a party to the lawsuit and so it would not be appropriate to comment.
The Station Fire was the largest wildfire in Los Angeles County history. The fire forced the evacuation of thousands of people and caused insured losses that have been estimated as high as $106 million, according to the Insurance Information Network of California.
Updated with comments from Farmers and Accenture
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