California Insurance Regulators Say State Farm Mishandled Wildfire Claims

State Farm denied any mishandling or intentional underpaying of wildfire claims.

A neighborhood is destroyed by the Palisades Fire near Los Angeles on Jan. 9, 2024. John Fredricks/The Epoch Times

The California Department of Insurance announced on May 4 it filed an enforcement action against State Farm, alleging the company significantly mishandled claims from survivors of the 2025 Los Angeles wildfires.

“Wildfire survivors came to us for help, and we followed the facts,” Insurance Department Commissioner Ricardo Lara said. “Our investigation found that State Farm delayed, underpaid, and buried policyholders in red tape at the worst moment of their lives. That is unacceptable, and we are taking decisive action to hold them accountable.”