Price is suing them for violating state laws regarding how the company determines homeowners insurance rates, the cost of replacing the home, false advertising, unfair competition, and fraudulent business practices.California's insurance drought is now moving from the desert to the courtroom.Price said insurers use pre-programmed computer formulas that deliberately undervalue the homes they insure.
Consumer Watchdog said it's a direct violation of California law.Harvey Rosenfield, of Consumer Watchdog, wrote the law."So, for them to turn around after the fact and say, 'Hey, yeah, you don't have enough coverage, and we think we're not going to pay the claim in its entirety. That’s an outrage," said Rosenfield.That's why Rosenfield is battling the insurance industry to forbid them from using new Artificial Intelligence rating software.