Extreme Heat

LA County Launches Investigation into Farmers Insurance
Over Toxic Contamination Claims, Wildfire Survivor Complaints

Los Angeles County announced today that County Counsel has launched an investigation into Farmers Insurance Company’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, refusals to pay for testing and remediation of lead and other contamination, underpayments, and denials of legitimate wildfire claims. County Counsel has formally notified Farmers 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 law.

“Eaton Fire survivors did everything right—responsibly paying their premiums year after year—but when disaster hit, Farmers left them with a contaminated home and refused to pay for testing and cleanup,” said Los Angeles County Supervisor Kathryn Barger. “That’s an unfair business practice that needs to end now. My constituents shouldn’t have to walk back into homes with lead and asbestos because an insurance company won’t pay for the test that would prove it’s there. We are going to hold Farmers accountable to the law, and if they’ve broken it, they will answer for it.”

At a recent meeting with Eaton Fire survivors, Farmers policyholders told the County that Farmers has been slow, resistant, or outright refused to pay for testing for contamination by qualified industrial hygienists, forcing residents to pay for testing out of pocket. Testing has revealed that many standing homes are contaminated with unsafe levels of lead, asbestos, chromium, and other toxic substances. Survivors further reported that Farmers is refusing to pay for adequate remediation of these contaminants and declining to cover ongoing living expenses. These survivors are being forced to either bear the cost of alternative housing and/or remediation or return to a contaminated home – despite the fact that that they consistently paid their insurance premiums.

“After paying millions of dollars in premiums, policyholders deserve the benefits and support they paid for,” said Supervisor Lindsey P. Horvath. “Families whose homes survived the Palisades and Eaton Fires but remain damaged or contaminated should not be forced to choose between returning to an unsafe home and financial devastation. Farmers has had more than enough time to do right by their customers. They cannot evade the law or their responsibility to the people who paid for their coverage. Our residents deserve justice and Los Angeles County is taking action.”

County Counsel Dawyn R. Harrison said, “We are committed to thoroughly investigating Farmers’ actions and making sure they are treating claimants fairly. These claims need to be resolved 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.

This announcement follows the County filing a lawsuit on August 31 against State Farm for violating the Unfair Competition Law and other laws in its handling of fire survivor claims following the 2025 Eaton and Palisades Fires.

County Counsel’s letter to Farmers seeking information and documentation on its business practices is available here: County Counsel Letter to Farmers Insurance.