Los Angeles County investigates State Farm over wildfire claim handling, citing misconduct and poor customer treatment.

Los Angeles County has launched a civil investigation into State Farm over its handling of insurance claims from the January 2025 Eaton and Palisades wildfires, citing potential violations of California’s unfair business practices law. The probe, led by County Counsel Dawyn Harrison, focuses on complaints of delayed claims, frequent adjuster changes, lowball offers, claim denials, poor communication, and failure to properly cover living expenses or disclose estimate documents. County officials say the insurer may have misrepresented policy terms and inadequately assessed smoke damage. The investigation follows a third-party survey showing worse treatment for State Farm customers compared to other insurers. State Farm, California’s largest private insurer with over 2.8 million policies, claims it has paid nearly $5 billion on more than 13,500 claims and is cooperating, though it calls the probe a distraction. The company has until November 20 to respond to county data requests.