Los Angeles County has launched an investigation into State Farm’s handling of claims related to the Palisades and Eaton fires that occurred in January 2025.
The county issued a news release on Thursday stating that the investigation would focus on potential violations of California’s Unfair Competition Law, following growing complaints of delays, underpayments, and denials of legitimate claims.
“Altadena residents have already endured unimaginable loss and they shouldn’t have to fight their own insurance company to recover,” Los Angeles County Board of Supervisors Chair Kathryn Barger said in the release. “The County has heard loud and clear from wildfire survivors that State Farm’s delays are standing in the way of rebuilding. Fair and timely insurance payments aren’t a privilege; they’re a right. State Farm must act quickly so survivors can rebuild their homes and their lives.”
A survey funded by the nonprofit Department of Angels showed State Farm customers have had “far worse” experiences than customers of other insurers, the release said. They have reported lowball claim estimates, poor communication, higher rates of claim denials, and multiple adjusters being assigned to their claims.
“Families who lost everything in the Palisades and Eaton Fires deserve fair and timely treatment — not delays, denials, or underpayments.,” Supervisor Lindsey P. Horvath said in a statement. “It’s time for State Farm to live up to its commitment to be a ‘good neighbor’ and do right by its customers who have lost so much.”
Here’s what to know about Los Angeles County’s investigation into State Farm.
What is Los Angeles County accusing State Farm of doing?
The county has formally notified State Farm to cease any unlawful or unfair business practices and comply with state laws. The counsel’s office is empowered to seek civil penalties, restitution, and injunctive relief on behalf of Californians.
Key concerns include:
County leaders are outspoken: “Fair and timely insurance payments aren’t a privilege; they’re a right,” said Board Chair Kathryn Barger, in a press release announcing the probe.
Supervisor Lindsey Horvath added in a comment to FoxLA.com: “It’s time for State Farm to live up to its commitment to be a ‘good neighbor.’”
How State Farm responded to the investigation
State Farm released a statement Thursday in response to the news that the county had launched an investigation into the company’s practices.
“We’re here to help our customers recover and we empathize with those who are rebuilding their lives,” the company said in a statement provided to the media. “Our focus continues to be on supporting our customers in their recovery from the largest fire event we have ever experienced.”
On its website, State Farm said its claims force was the largest in the industry. After receiving around 13,500 claims, nearly $5 billion had been paid to California customers as of Nov. 6.
Scope of the Eaton and Palisades fires
The Eaton Fire burned 14,021 acres in and around Altadena and Pasadena, destroying 9,418 structures and damaging 1,073, according to the last report by Cal Fire.
The Palisades Fire burned 22,448 acres around the Pacific Palisades and Malibu, destroying 6,833 structures and damaging 973, Cal Fire said
Together, the two fires, which started on Jan. 7, resulted in 29 deaths and 13 injuries.
How to file a complaint if your claim is denied
Complaints can be submitted to insurance.ca.gov or by calling 1-800-927-9331. Make sure to keep records of the denial and all communication.
Sam Morgen covers the city of Palm Springs for The Desert Sun. Reach him at smorgen@gannett.com.
This article originally appeared on Palm Springs Desert Sun: LA County investigates State Farm over Palisades, Eaton fire claims
Reporting by Sam Morgen, Palm Springs Desert Sun / Palm Springs Desert Sun
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