Lawsuit filed against major home insurance company
The Alameda County District Attorney's office filed a lawsuit against Farmers Insurance Group, claiming it deliberately undervalues the homes it insures. The DA's office says the insurer uses a computer program to estimate the replacement value of a home. Instead of using individualized data, that program uses general data, such as a zip code, to determine the value. We spoke with Harvey Rosenfeld, the founder of Consumer Watchdog, about the affect this has on homeowners.
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