County Sues State Farm Over 2025 Wildfire Claims
Suit seeks restitution and penalties; follows state insurance department findings of hundreds of violations.
By Carlos Reyes
Los Angeles County has sued State Farm, alleging the insurer engaged in unfair business practices while handling homeowners insurance claims from the January 2025 Eaton and Palisades fires.
The lawsuit, filed by County Counsel on behalf of the People of the State of California, accuses State Farm of unreasonable delays, systematic underpayments, frequent reassignment of adjusters, barriers to communicating with claims staff, inadequate payment of additional living expenses, and suppression of smoke-damage claims. It also alleges that State Farm's advertising misled consumers about the coverage and claims service they would receive.
County officials said the company collected tens of millions of dollars in premiums from policyholders in the fire-affected areas but left many families unable to repair, remediate or return to their homes more than a year and a half later.
The complaint seeks restitution for affected policyholders, civil penalties of up to $2,500 per violation, and court orders requiring State Farm to change its claims practices. It is separate from a California Department of Insurance market conduct examination that reviewed 220 claims and identified hundreds of violations of state insurance rules. That state action does not seek restitution for policyholders.
The post County Sues State Farm Over 2025 Wildfire Claims appeared first on Insurance News | InsuranceNewsNet.
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