Published 1 day ago • loading... • Updated 1 day ago

State Farm is accused of delaying L.A. fire claims. Should it get OK for a rate hike?

Victims of the January 2025 Los Angeles wildfires filed two class-action lawsuits against 25 top home insurers, including State Farm, alleging collusion in high-risk policy handling.
The lawsuits claim insurers began colluding in 2023 to stop selling and renewing policies in areas like Pacific Palisades, Malibu, and Altadena, forcing homeowners into the state's FAIR Plan with limited coverage.
Plaintiffs argue they paid inflated premiums for FAIR Plan policies that provided inadequate protection, while insurers reaped billions and tried to eliminate competition in the private insurance market.
State Farm, facing complaints about delayed claim settlements after fires, reported over $3.12 billion paid on about 12,500 claims and expects total losses exceeding $7 billion, while the FAIR Plan may owe roughly $4 billion.
The lawsuits seek triple damages, attorney fees, costs, and interest, with plaintiffs requesting jury trials amid calls for regulatory investigations as insurers request premium increases during ongoing claims disputes.

Insights by Ground AI

Does this summary seem wrong?

22 Articles

All

Left

Center

Right

Daily Bulletin

Center

State Farm is accused of delaying L.A. fire claims. Should it get OK for a rate hike?

By Levi Sumagaysay | CalMatters Rossana Valverde’s Pasadena home of 35 years is still standing after Los Angeles County’s devastating January fires — but more than 100 days later, she and her husband still can’t move back in. That’s because they’re waiting for their insurer, State Farm, to approve and process their claims. “We were lucky our house made it through,” Valverde said. “At first we thought unscathed. But it definitely still smells lik…

1 day ago·Cherokee County, United States

Read Full Article