LA County opens investigation into Farmers Insurance handling of wildfire claims

Los Angeles County Wednesday, Sept. 9, announced it has opened an investigation into Farmers Insurance Company’s handling of insurance claims filed by Eaton and Palisades fire survivors.

County Counsel will be focusing on potential violations of California’s Unfair Competition Law. According to a county news release, policyholders reported delays, refusal to pay for testing and remediation of lead and other contamination, underpayments and denials of wildfire claims.

The county said it notified Farmers that if it is engaging in unlawful or unfair business practices, the company must stop and come into full compliance with state law.

“Families whose homes survived the Palisades and Eaton Fires but remain damaged or contaminated should not be forced to choose between returning to an unsafe home and financial devastation,” Supervisor Lindsey Horvath said in a statement. “Farmers has had more than enough time to do right by their customers.”

Farmers Insurance Company could not immediately be reached for comment.

According to the county, testing of standing homes revealed contamination including unsafe levels of lead, asbestos and chromium. Survivors reported that Farmers refused to pay for the remediation and declined to cover ongoing living expenses.

Under state law, the county can investigate and prosecute violations of the Unfair Competition Law and seek restitution, civil penalties and injunctive relief for any violations.

“Eaton Fire survivors did everything right—responsibly paying their premiums year after year—but when disaster hit, Farmers left them with a contaminated home and refused to pay for testing and cleanup,” Supervisor Kathryn Barger said in a statement.

The investigation follows Los Angeles County filing a lawsuit against State Farm for allegedly violating the Unfair Competition Law.

For more information, visit counsel.lacounty.gov.

This is a developing story. Check back for updates.