Thursday, October 8, 2026

LA County Probing FAIR Plan Over Insurance Claims from 2025 Wildfires

CITY NEWS SERVICE

Los Angeles County has launched an investigation into claims handling practices by the California FAIR Plan Association for policyholders impacted by the January 2025 Eaton and Palisades fires, officials announced Wednesday.

The county’s investigation focuses on potential violations of California’s Unfair Competition Law and comes in the wake of complaints from residents about delays, underpayments and denials of wildfire claims. County officials also said residents have complained about the association’s refusals to pay for testing and remediation of toxic contamination.

County Counsel has formally notified FAIR Plan that if it is engaging in any unlawful or unfair business practices, the company must immediately stop such conduct and comply with state law.

California FAIR Plan officials said they received a letter from the county asking them to furnish certain information about how claims related to the two fires were handled. The organization is reviewing the letter.

“The California FAIR Plan deeply empathizes with all FAIR Plan policyholders who suffered losses in the devastating Los Angeles fires. We recognize that many communities continue to feel the lasting impacts of the Eaton and Palisades wildfires disasters,” the group’s statement said.

The organization said it has handled 5,400 claims from the Eaton and Palisades fires, paying nearly $3.5 billion to policy holders.

“We remain committed to supporting our policyholders impacted by disaster. The FAIR Plan evaluates each claim on its own merits, and pays all covered claims, including smoke damage claims, up to the individual policy limits, in compliance with all laws relating to property and casualty insurance claims handling,” California FAIR Plan’s statement concluded.

The California FAIR Plan is a private association composed of all insurers licensed to write property insurance in the state. It is funded primarily through the policies it sells to customers.

It is not a state agency and is not funded by state or other public agencies, according to the county. It’s an insurer of last resort for property and fire insurance for homeowners who cannot buy coverage in the traditional market.

“After having their lives devastated by the fires, Altadena residents should not be victimized yet again by their own insurance company,” said LA County Supervisor Kathryn Barger, who represents Altadena and Pasadena.

A July 2026 survey from the Department of Angels, a nonprofit organization, found that 67% of FAIR Plan customers were dissatisfied, the most of any insurer. Embold Research surveyed 2,023 adults in Altadena, Pacific Palisades, Pasadena and Malibu from June 3-15, 2026, for the Department of Angeles report.

The survey found that FAIR Plan customers were significantly more likely than customers of other insurers to have received lowball estimates, poor communication, conflicting or inaccurate information, and claims denials. The survey found that over 50% of respondents reported having multiple adjusters assigned to their claims.

“Fire survivors who paid their premiums deserve fair and timely compensation — not delays, denials, or a choice between an unsafe home and financial devastation,” County Supervisor Lindsey Horvath said in a statement.

Horvath, whose district encompasses Pacific Palisades and Malibu, added that the FAIR Plan is the third insurer Los Angeles County is investigating over its treatment of fire survivors.

“We made a promise to stand with Palisades and Eaton Fire survivors through recovery, and we intend to keep it. Los Angeles County will use every tool available to protect survivors and hold accountable those who fail them,” Horvath said.

County Counsel is empowered by statute to investigate and prosecute violations of the Unfair Competition Law on behalf of California residents and seek restitution, civil penalties and injunctive relief for any violations.

County Counsel Dawyn Harrison said her office is committed to thoroughly investigating FAIR Plan’s actions and to ensure they are treating claimants fairly.

“The homeowners who rely on FAIR Plan are more vulnerable than others because their options for insurance are severely limited,” Harrison said in a statement.

The announcement follows the county filing a lawsuit on Aug. 31, 2026, against State Farm for violating the Unfair Competition Law and other laws in its handling of fire survivor claims following the 2025 Eaton and Palisades fires.

On Sept. 9, 2026, the county announced it was investigating Farmers Insurance over its handling of fire survivor claims following the 2025 fires.

Both State Farm and Farmers Insurance have maintained they have provided extensive support to policyholders.

State Farm said it deployed a Catastrophe Response Team to assist fire survivors, processed 13,700 claims and paid more than $6 billion to customers. Farmers Insurance has disputed county claims, adding the company operates in accordance with state laws.

“We remain focused on handling claims with care, consistency and attention to each customer’s unique situation,” Farmers Insurance said in a statement issued in September.