After reviewing hundreds of delayed or canceled claims by policyholders in the Eaton and Palisades fire, Los Angeles County announced on Monday, Aug. 31, it is suing State Farm Insurance for unfair business practices, officials said.
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“We are not trying to get in the way of the state. We’re filing because of the evidence we’ve collected showing a pattern of unfair business practices,” said Scott Kuhn, lead county counsel.
Ten months after Los Angeles County launched its investigation, hundreds of 2025 fire survivors’ insurance claims made to State Farm Insurance are still woefully underpaid, have been delayed or flat out denied, county officials reported on Monday, Aug. 31.
In April, near the 15-month anniversary, Barger announced that of the 6,000 Eaton fire survivors who lost their homes, 50% were unable to take out permits to start rebuilding. Much of that comes down to money, or lack thereof. And a lot has to do with insurance offers that woefully fall short of the cost of rebuilding or folks having no insurance at all, she said at the time.
Recovery comes down to money, and households with pre-fire wealth — or insurance that paid fully and on time — are rebuilding, said the Eaton Fire Survivors Network. Everyone else remains displaced, with dwindling savings and maxed out credit cards to pay for rent and expenses.
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The Eaton fire killed 19 people, destroyed 9,400 homes and buildings and displaced 100,000 people mostly in unincorporated Altadena, north of Pasadena. The Palisades fire killed 12 people, destroyed 6,845 structures in the Pacific Palisades in the city of Los Angeles, in Malibu and other nearby unincorporated areas.
The County Counsel’s investigation is focusing on “potential violations” of California’s Unfair Competition Law and including asking for complete records of claims, denial letters, and memos from adjustors. The county had warned the large insurance company that any destruction of records would be considered “a violation of the law” that could bring about “adverse consequences,” according to the county’s letter to State Farm.
The investigation comes on the heels of growing complaints from residents about delays lasting nearly a year, replacement payments that don’t cover the cost of building a new home that have stymied recovery efforts, and outright denials of legitimate wildfire claims.
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This is a developing story. Check back for updates.