LA County investigating State Farm’s claims handling from Eaton and Palisades fires

“The County has heard loud and clear from wildfire survivors that State Farm’s delays are standing in the way of rebuilding,” she added. “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.”

County Counsel has formally notified State Farm 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 laws and regulations.

“The goals of this investigation by LA County are unclear but what is clear is that it will be another distraction from our ongoing work in California to help our customers recover from this tragedy,” State Farm said in response to the LA County investigation. “As of Nov. 12, State Farm has paid over $5 billion on 13,500 auto and fire claims resulting from the January fires. In the last 30 days, State Farm has paid out more than $208 million to customers, an average of $6.9 million every day.”

Meanwhile, third-party surveys have found widespread frustration with State Farm’s treatment of claims, according to LA County, with far too many residents facing undue claims delays, underpayments and denials that compound their hardship and loss in the aftermath of the devastating Eaton and Palisades Fires.

What State Farm says:

• We anticipate ultimately State Farm General will pay between $6-7B in losses from these fires. There are still nearly 200 claims associates on the ground in California helping customers. Earlier this year, there were about 1,000 claims associates in California. These employees have chosen to make their career about helping people who have been devastated by catastrophes. This on-the-ground help has been amplified by thousands of State Farm employees who have helped from across the country.
• In California, there are just under 2,000 State Farm agents – more than 500 are based in LA County. They and their teams continue to work tirelessly to help people.

“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,” said LA County Supervisor Lindsey P. Horvath. “Families who lost everything in the Palisades and Eaton Fires deserve fair and timely treatment — not delays, denials, or underpayments. 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.”

See also:

• FAIR Plan asked to turn over wildfire records
• The insurance and construction industries must adapt to extreme weather
• Hawaii resolution calls on insurers to force climate accountability