Los Angeles County announced today that County Counsel has launched an investigation into State Farm’s handling of insurance claims filed by policyholders affected by the January 2025 Eaton and Palisades Fires.

The investigation focuses on potential violations of California’s Unfair Competition Law and follows growing complaints from residents about delays, underpayments, and denials of legitimate wildfire claims. County Counsel has formally notified State Farm that if it 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,” said Los Angeles County Board of Supervisors Chair Kathryn Barger. “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. 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, with far too many residents facing undue claims delays, underpayments and denials that compound their hardship and loss in the aftermath of the devastating Eaton and Palisades Fires.

According to an October 2025 survey by Embold Research for the nonprofit Department of Angels, State Farm customers have had far worse experiences than customers of other insurers, reporting much higher rates of claim denials, lowball claims estimates, poor communication, and multiple adjusters being assigned to their claims. The survey noted 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.

“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,” said Supervisor Lindsey P. Horvath. “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.

County Counsel Dawyn R. Harrison said, “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.”

County Counsel is empowered by statute to investigate and prosecute violations of the Unfair Competition Law on behalf of the People of the State of California and seek restitution, civil penalties, and injunctive relief for any violations.

County Counsel’s letter to State Farm seeking information and documentation on its business practices is available here: County Counsel State Farm 2025 Wildfire Claims Letter

Contact: Scott Kuhn, Assistant County Counsel, skuhn@counsel.lacounty.gov or 323-719-9606.

For more information on County Counsel’s Affirmative Litigation and Consumer Protection Division, please visit: https://counsel.lacounty.gov/alcp/