California homeowners are confronting two lawsuits accusing major insurers, including State Farm, Farmers Insurance, and Mercury Insurance, of colluding to force policyholders onto the state-backed California Fair Plan. The lawsuits allege that insurers manipulated premiums and coverage to profit from higher rates while limiting their liabilities in the event of wildfires. This legal action follows investigations and testimonies highlighting widespread underinsurance among wildfire survivors, as noted by builders, insurance experts, and policyholder advocates before the California Board of Equalization. Additionally, the California Fair Plan, known as the insurer of last resort, is reportedly financially strained due to the Palisades Fire and has been accused of splitting fire claims into separate fire and wind claims to impose multiple deductibles on homeowners.