When a wildfire destroys a home, the fight often shifts from the flames to the insurance company. After the January 2025 Los Angeles wildfires, California's insurance regulator found that State Farm mishandled survivors' claims — alleging 398 violations of state law in a sample of just 220 files — and moved to strip its license. Regulators and courts have separately struck down the California FAIR Plan's practice of denying smoke, soot, and ash damage. This is a bad-faith investigation: it is about whether your own insurer honored the policy you paid for — not about who started the fire. California homeowners and businesses whose wildfire claims were denied, underpaid, or unreasonably delayed may have a claim worth reviewing.
From the docket
Litigation Timeline
- May 4, 2026
California moves to suspend State Farm over wildfire claims handlingregulatory
On May 4, 2026, the California Department of Insurance announces an Accusation and Order to Show Cause against State Farm, alleging 398 violations of state law in a sample of 220 wildfire claims (plus 34 from consumer complaints). The Department seeks a cease-and-desist order and asks that State Farm's license to write insurance in California be suspended for up to a year.
- June–July 2025
Courts and regulator reject the FAIR Plan's smoke-damage denialsverdict
On June 27, 2025, a Los Angeles County Superior Court judge rules in Aliff v. California FAIR Plan that the Plan's restrictive smoke language provides less coverage than California's standard fire policy. On July 31, 2025, the Department of Insurance files an Order to Show Cause against the FAIR Plan over its smoke-damage practices.
- January 7, 2025
Eaton and Palisades fires devastate Los Angeles Countyregulatory
The Eaton Fire ignites in Eaton Canyon on January 7, 2025, killing 19 people and destroying more than 9,000 structures in and around Altadena — one of the most destructive wildfires in California history. Tens of thousands of insurance claims follow across the Eaton and Palisades burn areas.
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