Bad Democrat

Los Angeles County announced this morning that they are suing State Farm Insurance (State Farm) for troubling peoples’ fire insurance claims from the Eaton and Palisades fires.

From the LA County Supervisor’s site:

The lawsuit follows County Counsel’s investigation of State Farm’s alleged violations of California’s Unfair Competition Law relating to delays, underpayments, and denials of wildfire claims from its policyholders impacted by the 2025 wildfires. The lawsuit alleges that State Farm subjected policyholders to:

• False advertising inducing them to purchase and rely on State Farm insurance;
• Unreasonable delays in investigation and processing of claims;
• Systematic underpayments of claims even where the rightful amount of the claim was clear;
• Frequent and improper reassignment of individual claim adjusters;
• Systematic barriers to policyholders’ ability to contact and communicate with adjusters;
• Refusal to provide due compensation for Additional Living Expenses (ALE);
• Misrepresentations during the claims process to discourage pursuit of claims; and
• Illegal suppression of smoke damage claims.

“Wildfire survivors have already endured unimaginable loss; they should not have to fight their insurance company simply to receive the benefits they paid for and counted on,” said Los Angeles County Supervisor Kathryn Barger. “These delays, underpayments, and denials have real consequences. They keep families from rebuilding, prolong displacement, and ultimately slow the recovery of entire communities. That is why Los Angeles County is taking action to stand up for survivors and hold State Farm accountable.”