A lawsuit was filed Tuesday against Farmers Group Inc.  The lawsuit accuses Farmers of refusing to pay claims to policyholders whose homes were damaged by last summer’s massive Station Fire near Los Angeles.  The suit claims breach of contract and unfair business practices.  It seeks unspecified damages for more than 1,000 homeowners who reported smoke, ash and other damages from the blaze that killed two firefighters, destroyed 89 homes and scorched 250 square miles of Angeles National Forest.

Brian Kabateck, an attorney for the plaintiffs, stated that Farmers denied claims to boost its bottom line.  He also stated the average loss among homeowners named in the lawsuit was $25,000 to $50,000.

“Once again, it appears Farmers has engaged in the egregious practice of denying or underpaying claims, simply to frustrate policyholders and discourage them from seeking the compensation they deserve,” Kabateck said.

Jerry Davies, Farmers spokesman, would not comment on the lawsuit and stated the company had not seen it yet.  A message to the state Department of Insurance wan not immediately returned.

Farmers and other insurers were accused of similar practices after the 1994 Northridge earthquake that killed 72 people and caused an estimated $15.3 billion in damage.

Farmers is accused of hiring biased consultants to deny or undercut claims as well as being unreasonable in its claims adjustment practices.

“The result is that plaintiffs and defendants’ other insureds are cheated of monies rightfully owed to them,” according to the lawsuit.

One plaintiff, Russell Reed, 55, who lives in Altadena, had damage to his home from the fire.  He stated he had a layer of ash and debris a foot deep in his pool that clogged drains and was a nuisance for weeks.  Reed said Farmers agents came out a month or two after the fire and said he wasn’t eligible to receive any money.

“I’ve been a good customer of Farmers for a long time,” he said. “The one time we have a major catastrophe, Farmers doesn’t want to assist me.”