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A state investigation led by Ricardo Lara found that State Farm may have violated California law while handling insurance claims from the devastating 2025 Eaton and Palisades wildfires.
The probe, launched after numerous consumer complaints, reviewed hundreds of cases and uncovered widespread issues, including delays, underpayments, and claim denials—particularly involving smoke damage.
Investigators say some homeowners faced excessive red tape or unclear communication during a critical time of recovery. Nicole Comstock reports the state is now pursuing significant penalties and could even consider suspending the insurer’s ability to write new policies.
State Farm denies wrongdoing, calling the issues unintentional and pointing to billions already paid out in claims. The findings add to growing scrutiny of how insurers respond to increasingly destructive wildfires across California.
