Los Angeles County has launched an investigation into State Farm, the largest insurer in California, over its handling of insurance claims related to the January 2025 Eaton and Palisades wildfires. The probe, announced on Thursday, comes after numerous complaints from residents about delays, underpayments, and denials of claims. The investigation will focus on potential violations of California’s Unfair Competition Law, which mandates fair business practices.
County Supervisor Kathryn Barger emphasized the urgency of the situation, stating, “Altadena residents have already endured unimaginable loss, and they shouldn’t have to fight their own insurance company to recover.” Residents like Jesse Albert, whose home was destroyed in the Eaton Fire, have reported receiving significantly lower payouts than needed to rebuild. Albert claims State Farm told him he had reached his policy cap, despite prior assurances that his coverage was sufficient.
According to ABC7, the County Counsel has formally notified State Farm to cease any unlawful practices immediately. The investigation also seeks to determine if State Farm has violated state insurance laws by failing to provide timely responses and adequate compensation for claims…