LA County Investigating State Farm’s Handling of January Wildfire Claims

Los Angeles County officials are investigating policyholder complaints that State Farm, California’s largest home insurance company, has delayed, underpaid, or denied claims in the aftermath of the January 2025 Eaton and Palisades wildfires.

The county counsel’s office said it’s looking at potential violations of the state’s Unfair Competition Law. If found liable, State Farm could face civil penalties of up to $2,500 per day, per violation.

“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 a press 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,” she said. “State Farm must act quickly so survivors can rebuild their homes and their lives.”

Third-party surveys have found widespread frustration with State Farm’s treatment of claims, county officials said. Far too many residents have faced undue claim delays, underpayments, and denials that compound their hardship and losses, according to the county’s statement.

LA County orders insurer to turn over documents

In a letter to State Farm signed by county counsel Dawyn R. Harrison, the board gave the company until Nov. 20 to turn over all “documents, reports, spreadsheets, databases, summaries, dashboards or other records that track, compile, or reflect in aggregate form information concerning insurance claims” related to the wildfires.

State Farm executives said the company would cooperate with the investigations but pushed back on the necessity of the inquest.

“The goals of this investigation are unclear, but what is clear is that it will be another distraction from our ongoing work in California to help our customers recover from this tragedy,” State Farm spokesman Michal Brower told Insurify.

In a response posted on the State Farm website, the company said that as of Nov. 12, State Farm has paid more than $5 billion on 13,500 auto and fire claims resulting from the January fires.

“In the last 30 days, State Farm has paid out more than $208 million to customers, an average of $6.9 million every day,” the insurer stated. “More than $2.2 billion has been paid out in advance payments and for additional living expenses for customers displaced by the fires. We anticipate ultimately State Farm General will pay between $6 billion [and] $7 billion in losses from these fires.”

What’s next: State Farm says it’s committed to helping Californians

State Farm customers have had far worse experiences than customers of other insurers following the wildfires, LA supervisors said, citing an October 2025 survey by Embold Research for the non-profit Department of Angels. The survey found State Farm customers reported much higher rates of claim denials, lowball claims estimates, poor communication, and multiple adjusters being assigned to their claims.

It also highlighted the urgent need to resolve claims quickly, as displacement coverage will be running out soon for many survivors, who must either return home or find other housing.

“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,” Supervisor Lindsey P. Horvath said in the release.

With more than 2.8 million residential and commercial policies statewide, State Farm is California’s largest private insurer.

“Nearly 200 claims professionals are still on the ground, supported by teams nationwide, helping customers recover,” Brower wrote in a response. “We’re here every step of the way and working with elected officials to build a more sustainable insurance market in California.”

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