Homeowners in a Castaic condo complex were hit with a massive rate increase for fire insurance, with rates going from roughly $40,000 a year in 2020 to nearly $450,000 in 2022.
Harvey Rosenfield, with Consumer Watchdog, authored Prop 103 in 1987, which led to stricter regulations for insurance companies in California. "Here is what I think," Rosenfield said. "I think insurance companies are taking advantage of a crisis to create their own crisis in the marketplace, by overcharging people, by refusing to renew."
Rosenfield also coauthored a study coming out Monday that claims some major insurance companies are inserting illegal provisions into their fire coverage policies as a way to deny claims and to be reduce what they pay out in claims.
"It's like you suffer the devastation of the wildfire and then what the insurance companies do to you is also a catastrophe," he said.
Consumer Watchdog is also calling out the insurance commissioner, saying he approved these illegal provisions.