California Insurance Commissioner Investigates State Farm over Los Angeles Wildfire Claims

California Insurance Commissioner Ricardo Lara has launched a formal investigation into State Farm's handling of claims from survivors of the January Los Angeles-area wildfires, including the Palisades and Eaton fires. The inquiry will assess whether State Farm complied with California’s consumer protection and claims-handling laws amid allegations of delayed payments, multiple claims adjusters, and difficulties in reimbursement, especially for smoke damage and potential contamination from lead, asbestos, and heavy metals. Survivors and lawmakers have criticized State Farm for excessive documentation demands, claim denials despite evidence, and a complicated claims process that has caused financial and emotional hardship. The investigation follows calls from wildfire survivor groups and state legislators for regulatory scrutiny of the state's largest property insurer, which has about one million home insurance customers in California. The California Department of Insurance is also focusing on consistent standards for smoke damage remediation through a newly formed task force. State Farm stated it is cooperating with the probe and maintains that many customers are satisfied with its services on the ground in Los Angeles County.