FOR IMMEDIATE RELEASE: Monday, May 4th, 2026
CONTACT: Sam Villaneda, Samantha.Villaneda@asm.ca.gov, (760) 269-9391
Tom Steel, Tom.Steel@asm.ca.gov, (916) 319-2041
State Farm Mishandles Los Angeles Wildfire Claims, Asm. Harabedian Responds
(Altadena, CA) – The California Department of Insurance today announced that State Farm markedly mishandled insurance claims filed by survivors of the 2025 Los Angeles wildfires. These violations include slow and inadequate investigation, low settlement offers, underpaid claims, and inadequate communications. The Department of Insurance enforcement action pursues millions of dollars in penalties to State Farm.
Assemblymember John Harabedian (D-Pasadena) issued the following statement:
“From the White House to Lake Avenue, today’s investigation confirms what everyone knows: State Farm is grossly mishandling wildfire claims. In a time when wildfire survivors should have received the support they needed to rebuild, State Farm failed policyholders when it mattered most, prolonging the timeline of recovery and pushing families to the brink of financial ruin. Survivors have long asked for support and it is imperative that legal action against State Farm ensures accountability to the fullest extent of the law. I commend Commissioner Lara on the investigation and enforcement action against State Farm and look forward to seeing real results for survivors.”
With complaints issued by consumers and at Assemblymember Harabedian’s and the Legislature’s urging, the Department has filed an Accusation and Order to Show Cause against State Farm - the first step toward a public hearing before an administrative law judge. The filing alleges violations of the Unfair Insurance Claims Practices Act and related regulations, including the 398 violations identified in the Market Conduct Examination and 34 additional violations based on consumer complaints.
Under California Insurance Code Section 790.035, penalties may reach $5,000 per violation, or $10,000 for willful violations. Penalties may be imposed by the Commissioner following the administrative hearing.
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Assemblymember John Harabedian represents the 41st District composed of the cities of La Cañada Flintridge, Pasadena, Altadena, Sierra Madre, Monrovia, Bradbury, San Dimas, La Verne, Claremont, Upland, Rancho Cucamonga, Oak Hills, Piñon Hills and Phelan.
