State Farm is finally being held accountable — by LA County

State Farm delayed, and denied, and dragged its feet for far too long — and now wildfire victims will have their day in court.

LA County sued the Illinois-based insurance giant this week, alleging that the company broke California’s laws and regulations in handling the Palisades and Eaton Fires last Jan. 7.

Specifically, the county says that State Farm waited too long to pay fire claims; made lowball offers to homeowners, putting them under financial pressure; played musical chairs with the company’s insurance adjusters, so customers kept having to start over with their claims; suppressed claims for smoke damage; and engaged in false advertising that the company would actually help people.

These complaints are familiar to anyone from Pacific Palisades, Malibu, Altadena or Pasadena. 

In the year 2025, when State Farm made nearly $13 billion in profit — more than doubling its profit from the year before — the insurance company nickled-and-dimed desperate families in California.

Rather than paying 100% of losses for personal property off the bat, State Farm only offered 50%, unless customers compiled “the list” — the dreaded itemization of every lost possession, an experience that many fire victims likened to losing their homes all over again.

Only media coverage, and legislative pressure, moved the company to raise its default payout to 65%.

California Insurance Commissioner Ricardo Lara showed little interest in cracking down on State Farm, at first.

It took a protest movement — organized by the Every Fire Survivor’s Network — to push him to take action, and investigate the company.

Lara’s investigation ultimately found a shocking pattern of violations by the company, and threatened its license to operate in California.

In the year 2025, when State Farm made nearly $13 billion in profit — more than doubling its profit from the year before — the insurance company nickled-and-dimed desperate families in California. Getty Images

Ironically, wildfire survivors who still had State Farm policies were the lucky ones: The company canceled coverage for many residents in the months, and even days, leading up to the fire.

The drama continues. Earlier this week, legislators in Sacramento reached a deal on SB 492, a bill to protect wildfire victims from caps on damages. Gavin Newsom wanted to protect the big utilities, but backed down in the end.

However, on Monday, the Legislature failed to vote on SB 492. That means Gov. Newsom could call a special legislative session to deal with the issue.

Rather than bailing out utility companies, or protecting insurance companies, our leaders need to put wildfire victims first. 

LA County did that this week. State Farm will be held accountable — and it’s about time.

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