Los Angeles County launches probe into Farmers Insurance over wildfire claim handling

Los Angeles County has opened an inquiry into Farmers Insurance’s handling of claims arising from the Eaton and Palisades wildfires, focusing on possible breaches of California’s Unfair Competition Law. Affected homeowners report extensive delays, partial payments, outright denials and the insurer’s refusal to fund essential testing for contaminants like lead, asbestos and chromium. County Counsel Dawyn R. Harrison pledged a thorough review to ensure compliance with the law and swift resolution of claims.

Supervisors Kathryn Barger and Lindsey P. Horvath criticized Farmers for leaving premium-paying policyholders in a position where they must choose between financial hardship and returning to homes with hazardous residues. Local business leaders such as Maryam Zar, who heads the Malibu Pacific Palisades Chamber of Commerce and the Palisades Recovery Coalition, said the investigation is long overdue and highlighted ongoing challenges for low-income and older residents.

Farmers’ media relations manager Carly Kraft asserted the company is dedicating resources to individual claim reviews and will cooperate with the investigation. The county’s action follows a recent lawsuit against State Farm over similar wildfire claims.