US EditionState Farm is accused of delaying L.A. fire claims. Should it get OK for a rate hike?
- Victims of the January 2025 Los Angeles wildfires filed two class-action lawsuits against 25 top home insurers including State Farm, alleging collusion.
- The lawsuits claim insurers conspired since 2023 to force high-risk homeowners out of the private market into the state FAIR Plan by canceling policies and refusing new coverage.
- The FAIR Plan, California's insurer of last resort, provides limited coverage capped at $3 million but is more expensive and inadequate compared to private insurance, leaving many underinsured.
- State Farm reported over 12,500 fire claims as of April 2025 and paid $3.12 billion but faces complaints for delayed payouts while seeking a rejected 17% rate increase amid widespread policyholder distress.
- The lawsuits seek triple damages, attorney fees, and costs, and highlight that affected homeowners paid inflated premiums yet received less protection, indicating a significant insurance market failure.
23 Articles
23 Articles
Lawmakers approve bold new safety net for uninsured homeowners after devastating fires: 'It's time ... to align with the rest of the world'
In January, wildfires raged throughout the Los Angeles area. According to Cal Fire, in 2025 alone there have been 850-plus wildfires, with over 60,000 acres burned and over 16,000 structures destroyed. The California State Assembly Insurance Committee recently approved Assembly Bill 1236. This bill includes provisions to create climate resilience insurance and grant programs to reduce risk. In addition to destroying acres of natural habitats, t…
State Farm is accused of delaying L.A. fire claims. Should it get OK for a rate hike?
By Levi Sumagaysay | CalMatters Rossana Valverde’s Pasadena home of 35 years is still standing after Los Angeles County’s devastating January fires — but more than 100 days later, she and her husband still can’t move back in. That’s because they’re waiting for their insurer, State Farm, to approve and process their claims. “We were lucky our house made it through,” Valverde said. “At first we thought unscathed. But it definitely still smells lik…
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