Bentley & More LLP Files Lawsuit Against AAA and USAA Over Wildfire Underinsurance
Bentley & More LLP Files Lawsuit Against AAA and USAA Over Wildfire Underinsurance
Bentley & More LLP has filed lawsuits on behalf of Los Angeles County homeowners who lost their homes in the devastating January 2025 Eaton and Palisades wildfires. The lawsuits accuse insurance giants AAA and USAA of systematic underinsurance and deceptive practices, leaving fire victims without adequate funds to rebuild.
According to the claims, both insurers relied on flawed cost-estimating software, 360Value, which dramatically undervalued rebuilding costs—offering coverage as low as $264 per square foot when actual costs ranged from $800 to $1,400. Many homeowners allege they were misled into believing their policies provided sufficient protection and were even prevented from purchasing higher coverage limits.
These allegations are backed by previous investigations from the California Department of Insurance, which found widespread underinsurance issues across the industry.
To learn more about the case and its implications for California homeowners, read the full coverage from:
- Daily Journal – “Homeowners accuse AAA and USAA of wildfire underinsurance”
- San Francisco Chronicle – “Thousands of L.A. homeowners lacked coverage after fires”
- Los Angeles Times – “Fire victims sue AAA and USAA, alleging insurance fraud”
- PR Newswire – “Homeowners Sue WSAA and AAA Alleging Systemic Underinsurance in the Wake of LA County Wildfires”
This case highlights the urgent need for stronger consumer protections and insurance reform in wildfire-prone regions.