They survived the fires — but not the insurance maze

State Farm’s response to wildfire insurance claims in Los Angeles County is now under formal review by California regulators following a surge of complaints from fire survivors.

The Department of Insurance announced on June 12 that it is conducting a regulatory review to assess whether insurance providers are complying with state laws regarding fair treatment and timely claims processing.

Insurance Commissioner Ricardo Lara stated that the move is in response to reports from residents who have struggled with prolonged delays, shifting claims adjusters, and unclear guidance. “No one should be left in uncertainty, forced to fight for what they are owed, or face endless delays that often lead consumers to give up,” Lara said in a public statement.

Homeowners affected by the January wildfires, including those in Altadena and Pasadena, described repeated frustrations in dealing with the insurer. Some reported unresolved claims for smoke damage and unexplained processing lags. State investigators will also examine whether similar cases were handled inconsistently or without proper documentation.

Altadena resident Andrew Wessels, whose family has relocated multiple times due to lingering damage, said his experience with the claims process has been disheartening. He noted he has already worked with four different adjusters and is still awaiting reimbursement for thousands of dollars. “I’m happy to hear the commissioner has chosen to look deeper. But I’ll believe stuff when I see it on any of these things,” he told CalMatters.

State Farm said it will fully participate in the investigation. According to company spokesperson Sevag Sarkissian, the insurer has paid out more than $3.96 billion across over 12,000 claims in California this year.

The Department of Insurance is encouraging anyone affected by the fires to continue submitting complaints. Hundreds have been filed so far, many naming State Farm directly, said agency spokesperson Gabriel Sanchez.

In past wildfire investigations, including those tied to fires in 2015 and 2017, regulators found violations that led to additional compensation for policyholders. Department spokesperson Michael Soller said those actions recovered around $158 million in unpaid claims.

State Farm recently received regulatory approval to increase its homeowner’s insurance rates in California and is currently pursuing further hikes.

California residents can file a complaint with the California Department of Insurance by using the Consumer Complaint Center. Policyholders can fill out an online form, mail documentation, or call 1-800-927-4357. The department reviews each complaint, contacts the insurer for a response, and can take enforcement action if necessary.

The CDI provides a Wildfire Recovery Resources page with checklists, claims guidance, and direct assistance for survivors. Additionally, nonprofit groups such as United Policyholders offer free webinars, sample letters, and claim navigation tips specifically tailored to fire recovery.

To minimize delays, the National Association of Insurance Commissioners recommends that policyholders file claims promptly, document all damage with photos or video, and maintain clear communication records. Saving receipts, making temporary repairs when safe, and keeping a claims diary can help support your case and ensure faster resolution.

Following past wildfire crises, California passed Senate Bill 824 (Lara, 2018), which introduced a one-year moratorium on home insurance cancellations in declared disaster zones. It also requires insurers to report nonrenewals and cancellations, providing regulators with better insight into coverage gaps after a disaster.

Also Read:

1. New insurance rules mean homeowners throughout California are likely to pay more after fires
2. L.A. fires worsen insurance crisis in California
3. 'I lost everything': California veteran loses home in fire weeks after home insurance dropped him
4. Do you still need to pay for your home if it was destroyed in a disaster?