Home / Disasters and Accidents / LA County Sues State Farm Over Wildfire Claims
LA County Sues State Farm Over Wildfire Claims
1 Sep
Summary
- LA County filed a lawsuit against State Farm for mishandling wildfire claims.
- Survivors report significant delays, underpayments, and displacement.
- The lawsuit alleges violations of California's unfair competition laws.
Los Angeles County announced a lawsuit against State Farm on Monday, accusing the insurer of mishandling claims for survivors of the 2025 Eaton and Palisades fires. The county alleges violations of California's unfair competition and false advertising laws.
Nineteen months after the fires, many survivors remain displaced, with depleted savings and dwindling housing funds. They report issues such as claim processing delays, changes in adjusters, underpayments, and problems with smoke damage claims. These issues prevent survivors from recovering and force them to continue paying for temporary housing.
The state is also pursuing legal action against State Farm, citing investigations that found the company was slow to investigate and underpaid claims. Regulators noted these issues in May, further complicating the recovery process for wildfire victims.
State Farm has previously rejected claims of a general practice of mishandling wildfire claims and cited a "dysfunctional" insurance market. The company stated it has paid over $6 billion in claims related to these fires, with expectations to exceed $7 billion.
