California seeks millions of dollars from State Farm for handling of claims after 2025 LA wildfires

SACRAMENTO, Calif. (AP) — California’s top insurance regulator says the state is seeking millions of dollars in penalties from State Farm after an investigation found the insurance company violated state law while handling claims from the 2025 Los Angeles-area wildfires.

Insurance Commissioner Ricardo Lara said Monday that State Farm violated the law hundreds of times.

Lara launched the investigation last June after survivors of the Palisades and Eaton fires said that the state’s largest home insurer was delaying and mishandling claims regarding damage to their homes and possible contamination from smoke.

The department looked at 220 random claims filed to State Farm and found nearly 400 violations. They included underpayment and slow or inadequate claim processing.

The final amount of penalties will be recommended by an administrative judge and finalized by Lara.

State Farm didn’t immediately respond to request for comment.