Los Angeles fire survivor is told State Farm’s $900K check on hold due to insufficient funds

Amelia McDonald couldn’t believe her ears. She had been navigating what she calls “a horrible experience” trying to get her claims paid by State Farm after the Eaton Fire burned down her Altadena home and ranch in January. She, along with her father, daughter and the goats that survived the fire, have been displaced since then.

Now a $876,354.07 check the insurer wrote her wouldn’t clear.

McDonald called the check-hold department of her bank, Chase, Tuesday, asking why the funds from the check she deposited on June 30 were not available more than a week later. She said someone there told her it was because State Farm — the state’s largest property insurer — had insufficient funds. In fact, he told her, the account had a negative balance…

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