• State Farm is being investigated for allegedly delaying or denying claims related to smoke damage from LA fires.
• The insurance company is seeking a rate increase of 17% for homeowners, raising concerns among policyholders and lawmakers.
• Policyholders report difficulties in getting claims processed and receiving adequate compensation for damages, particularly smoke damage.

Following devastating fires in Los Angeles County, State Farm, California's largest insurer, is under pressure for its handling of insurance claims, especially those related to smoke damage. Numerous complaints have surfaced regarding delays and denials, prompting Insurance Commissioner Ricardo Lara to launch an investigation. This situation is further complicated by State Farm's pending request for a 17% rate increase, leading to calls for the rate hike to be withheld until claims are properly addressed. Policyholders are struggling to navigate the claims process, facing challenges in receiving timely responses and adequate compensation for damages.

• What: State Farm is facing allegations of delaying or denying insurance claims, particularly for smoke damage, following the Los Angeles fires. This coincides with the company seeking a rate increase.
• Who: Key individuals involved include Rossana Valverde, Andrew Wessels, Insurance Commissioner Ricardo Lara, State Farm CEO Dan Krause, State Senator Sasha Renee Perez, and State Farm spokesperson Sevag Sarkissian. Organizations involved include State Farm, California Department of Insurance, and California FAIR Plan.
• When: The events occurred after the January fires in Los Angeles County, with the rate increase decision pending and the Insurance Commissioner's investigation ongoing as of May 2025.
• Where: The events are primarily focused in Los Angeles County, California, and affect homeowners impacted by the fires.

The situation highlights a growing crisis in California's home insurance market, exacerbated by the increasing frequency and severity of wildfires. State Farm's handling of claims, particularly for smoke damage, is under scrutiny, raising questions about the company's commitment to its policyholders. The timing of the rate increase request further fuels public concern, leading to accusations of prioritizing profits over customer needs. The California FAIR Plan's financial difficulties underscore the broader challenges facing the insurance industry in high-risk areas, potentially leaving homeowners with fewer coverage options and higher premiums. The actions of the Insurance Commissioner and state lawmakers will be crucial in addressing these issues and ensuring fair treatment for fire survivors.

We’re here to help our customers recover and we empathize with those who are rebuilding their lives. We've received approximately 12,500 total claims related to the fires and have paid over $3.12 billion to our customers.

I’m going to see what they respond, then move accordingly.

You have to figure out what you’re dealing with. There’s too much at stake: your family’s health, your property value.

State Farm's handling of fire-related claims in Los Angeles County has triggered significant controversy, particularly regarding smoke damage coverage and the company's request for a rate increase. The Insurance Commissioner's investigation and the concerns raised by policyholders and lawmakers underscore the need for greater transparency and accountability within the insurance industry. The ongoing challenges faced by fire survivors highlight systemic issues within California's insurance market, demanding comprehensive solutions to ensure fair and timely compensation for those affected by wildfires. The outcome of the investigation and the rate increase decision will have significant implications for State Farm's reputation and the future of home insurance in California.