The Los Angeles County Counsel’s Office launched an investigation Thursday into how State Farm has handled insurance claims related to the devastating wildfires in January.
The Eaton and Palisades fires erupted amid fierce winds, causing the deaths of 31 people and destroying tens of thousands of homes. State Farm is among the largest insurers operating in California and nationally.
The county’s investigation focuses on potential violations of the state’s Unfair Competition Law and follows up on an increasing volume of complaints from policyholders regarding delays, underpayments and denials of what officials said are actually legitimate wildfire claims. County Counsel Dawyn R. Harrison has formally notified State Farm that if the company is engaging in any unlawful or unfair business practices, the company must immediately stop such conduct and come into full compliance with state laws and regulations.
“Altadena residents have already endured unimaginable loss and they shouldn’t have to fight their own insurance company to recover,” LA County Board of Supervisors Chair Kathryn Barger said in a statement. “The County has heard loud and clear from wildfire survivors that State Farm’s delays are standing in the way of rebuilding.”
Barger, who represents Altadena and communities in the Eaton Fire burn area, added, “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.”
State Farm spokeswoman Gina Morss-Fischer questioned the goals of the investigation and noted the company’s multibillion-dollar payout thus far to wildfire claimants.
“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,” Morss-Fischer said in a statement. “State Farm is committed to paying customers what they’re owed. We’re handling over 13,500 claims and have paid almost $5 billion to California customers affected by the January wildfires.”
According to the county, “third-party surveys” have reported widespread frustration with State Farm’s handling of insurance claims, compounding their hardship and loss in the wildfires’ aftermath.
A survey in October by Embold Research for the nonprofit Department of Angels found that State Farm customers have had far worse experiences than customers of other insurers. State Farm policyholders have reported significantly higher rates of claim denials, lowball claim estimates, poor communication and multiple adjusters assigned to a single customer’s claim.
Morss-Fischer noted that “nearly 200 claims professionals are still on the ground, supported by teams nationwide, helping customers recover,” she said. “We’re here every step of the way and working with elected officials to build a more sustainable insurance market in California.”
Embold’s October survey pointed to the pressing need to resolve claims quickly because displacement coverage will be running out soon for many fire survivors facing the dilemma of either returning home and rebuilding or finding other housing.
“Los Angeles County residents have paid State Farm millions in premiums over many years, and the company has a clear obligation to honor its policies in full,” Supervisor Lindsey Horvath, who represents the Palisades Fire area, said in a statement. “Families who lost everything in the Palisades and Eaton Fires deserve fair and timely treatment — not delays, denials, or underpayments. 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.”
With more than 2.8 million residential and commercial policies statewide, State Farm is California’s largest private insurer, officials said.
County Counsel Dawyn Harrison said in a statement, “We are committed to thoroughly investigating State Farm’s actions and making sure they are treating claimants fairly and resolving their claims quickly and in full compliance with the law.”
A letter sent Thursday to State Farm and Senior Vice President and General Counsel Keesha-Lu Mitra from Harrison and signed by Assistant County Counsel Scott Kuhn seeks extensive information and documents about the insurer’s business practices pertaining to LA wildfire claims. Kuhn leads the County Counsel’s Affirmative Litigation & Consumer Protection Division.
A copy of the letter is on the county’s website.
Joy Chen, executive director of the Eaton Fire Survivors Network, supported the county investigation into State Farm’s claims process.
“After ten long months of delays, denials, and heartbreak, we are grateful to Supervisor Kathryn Barger for demanding accountability from State Farm. Her leadership gives survivors hope that recovery — long stalled by insurer misconduct — can finally move forward,” Chen said in a statement.
The survivors group has documented more than 400 firsthand accounts from families impacted by the Eaton and Palisades fires “that reveal a clear pattern of misconduct by State Farm,” Chen said in a statement.
She criticized state Insurance Commissioner Ricardo Lara for allegedly failing to stop “illegal delays and denials” that have resulted in 70% of insured LA fire survivors reporting “delays and denials are derailing their recovery.”
“In the absence of state leadership, today’s county investigation is a major step forward,” Chen said. “It matters not only for Los Angeles fire survivors, but for every Californian who pays premiums and expects the protection they paid for when disaster strikes.”
Deputy Insurance Commissioner Michael Soller defended Lara’s wildfire recovery policies in a statement earlier this month.
“Commissioner Lara has moved quickly and decisively to respond to the fires including using every tool available to ensure wildfire survivors receive all the benefits they are entitled to under current law,” Soller told HeySoCal.com. “He issued a formal Bulletin requiring insurers to fully investigate and pay legitimate smoke damage claims, took legal action against the California FAIR Plan after it failed to follow the same standards, and is currently investigating State Farm over its handling of claims.”
The Insurance Department has recovered more than $135 million for wildfire survivors and insurance companies to date have paid more than $20 billion on over 41,800 claims, with 92% of claims fully paid or underway, Soller said, citing the Los Angeles County Wildfire Claims Tracker.
Department officials “have heard directly from thousands of survivors and met with survivor groups about the issues they are facing,” Soller added. “We understand their frustration and anger with insurance companies. Nobody should be forced to return to a home that is not safe or remediated.”
Updated Nov. 14, 2025, 8:13 a.m.
