LA County investigates insurer over fire claims

Los Angeles County is investigating Farmers Insurance over its handling of claims from the 2025 Eaton and Palisades fires, focusing on potential violations of California's Unfair Competition Law.

Affected policyholders report severe delays, underpayments, claim denials and refusals to cover living expenses or necessary testing and remediation for hazardous substances like lead, asbestos, and chromium.

"We are committed to thoroughly investigating Farmers' actions and making sure they are treating claimants fairly," said County Counsel Dawyn R. Harrison in a news release. "These claims need to be resolved quickly and in full compliance with the law."

Los Angeles County Supervisors Kathryn Barger and Lindsey P. Horvath have claimed that after faithfully paying their premiums, wildfire survivors are being abandoned by Farmers Insurance and forced into the unacceptable choice between financial ruin or returning to homes dangerously contaminated with lead and asbestos, prompting the County to step in and hold the insurer legally accountable.

"That's an unfair business practice that needs to end now," Barger told The Center Square in an email "My constituents shouldn't have to walk back into homes with lead and asbestos because an insurance company won't pay for the test that would prove it's there. We are going to hold Farmers Insurance accountable to the law, and if they've broken it, they will answer for it.""

The Center Square reached out to Horvath for comment and did not receive a response by press time.

Meanwhile, local stakeholders say the intervention is long overdue.

"I heard about it from the county just shortly after they filed it, and I thought it was a great idea," said Maryam Zar, CEO of the Malibu Pacific Palisades Chamber of Commerce and president of the Palisades Recovery Coalition, in a phone interview with The Center Square.

Zar noted that grassroots groups, such as the Every Fire Survivors Network (formerly the Eaton Fire Survivors Network) founded by Joy Chen, recognized early on that a family's mental health and overall ability to recover hinged directly on how their insurance disputes played out.

While visible signs of progress are emerging—with homes currently under construction or moving through the permitting process in the Palisades—Zar warned that the recovery will take time.

"We're talking about years," Zar said, pointing out that approaching the two-year mark reveals deep systemic hurdles. "The more challenging stuff remains, the hillside streets, the dead-end streets, the narrow windy roads, the people who can't afford to build back."

While rebuilding for affluent property owners has moved forward, Zar emphasized that protecting vulnerable populations remains a critical hurdle.

"It's not hard to find wealthy people to buy land and build homes," Zar said. "The challenge is to bring back the older people, the fixed-income people, the young families that didn't make a lot of money but wanted to live here for the school system. That is still a challenge because we don't still have a structure for the recovery. It's still very much build if you can."

Carly Kraft, Media Relations Manager for Farmers Insurance, said the wildfires have had "a profound impact on many customers," and the company's priority is helping them recover and move forward.

"Since the fires, we have dedicated significant resources to assisting affected policyholders and providing support throughout the claims process," Kraft told The Center Square via email. "Serving our customers during difficult times is at the heart of what we do, which is why each claim is reviewed individually, taking into account the specific circumstances of the loss and the coverage provided under the policy."

Kraft added that Farmers remains focused on handling claims with "care, consistency and attention" to each customer's unique situation.

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