LOS ANGELES – Los Angeles County has launched a formal investigation into State Farm’s handling of insurance claims following the January 2025 Eaton and Palisades fires.
What we know:
The investigation, launched by the Los Angeles County counsel, focuses on claims filed by policyholders affected by the January 2025 Eaton and Palisades fires. The county has formally notified State Farm that the company must immediately cease any unlawful or unfair business practices and comply fully with state laws.
The county counsel is empowered to investigate and prosecute violations of the unfair competition law on behalf of the people of California, seeking restitution, civil penalties, and injunctive relief.
State Farm is noted as California’s largest private insurer, holding more than 2.8 million residential and commercial policies statewide.
The backstory:
The county’s action follows growing complaints from residents about State Farm’s treatment of claims, specifically mentioning delays, underpayments, and denials.
Third-party surveys have found widespread frustration, noting that these issues compound the hardship for residents in the aftermath of the devastating fires.
An October 2025 survey by Embold Research for the nonprofit Department of Angels found that State Farm customers reported far worse experiences than those of other insurers, including higher rates of claim denials, lowball claims estimates, poor communication, and the assignment of multiple adjusters.
The survey also highlighted the urgency of resolving claims quickly as displacement coverage will be running out soon for many survivors.
What they’re saying:
County officials are forcefully criticizing State Farm’s claims process.
Los Angeles County Board of Supervisors chair Kathryn Barger said, “Altadena residents have already endured unimaginable loss and they shouldn’t have to fight their own insurance company to recover… 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.”
Supervisor Lindsey Horvath emphasized the company’s obligation.
“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… 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.”
County counsel Dawyn Harrison stated the office’s commitment to the investigation.
“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.”
What’s next:
The county counsel has sent a letter to State Farm requesting information and documentation regarding its business practices, which is publicly available.
The investigation will continue with the goal of ensuring the company is treating claimants fairly and resolving claims quickly and in full compliance with the law.
The Source: This report is based on official announcements from Los Angeles County, detailing the launch of the investigation by the county counsel into State Farm’s practices. Information regarding customer complaints and poor claims experience is supported by findings from an October 2025 survey conducted by Embold Research for the nonprofit Department of Angels. Quotes are directly attributed to Los Angeles County Board of Supervisors Chair Kathryn Barger, Supervisor Lindsey Horvath, and County Counsel Dawyn Harrison.