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LA County Launches State Farm Probe Following Eaton, Palisades Fires

The probe targets alleged delays, underpayments, and denials in claims from 13,500 wildfire cases, with 70% of survivors reporting recovery delays, county officials said.

  • On Nov. 13, Los Angeles County counsel launched a formal investigation into State Farm's handling of insurance claims filed by policyholders affected by the January 2025 Eaton and Palisades fires amid complaints of delays, denials and underpayments.
  • Amid mounting complaints from survivors, the Eaton Fire Survivors Network documented over 400 firsthand accounts and said 70% of insured Los Angeles fire survivors report delays derailing recovery.
  • The county's letter demands all records on January 2025 wildfire claims, adjuster policies and AI use from State Farm headquarters, Bloomington, Illinois, citing California's Unfair Competition Law with a Nov. 20 deadline.
  • The Los Angeles County Office of County Counsel said it aims to change practices, while State Farm responded that the investigation is 'another distraction'; the California Department of Insurance launched an exam in June, and State Farm paid nearly $5 billion for wildfire claims.
  • With State Farm's size and exposure in mind, officials warn exams can lead to practice changes, penalties, and hundreds of millions passed to policyholders after $7.6 billion losses from January 2025 fires.
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The Desert SunThe Desert Sun
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California investigates State Farm over wildfire claims

·Palm Springs, United States
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Fox 11 LA broke the news in on Thursday, November 13, 2025.
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