State Farm Faces Millions in Penalties for LA Wildfire Claims

State Farm could face millions of dollars in penalties in California after the state’s insurance regulator alleged the firm mishandled claims related to the 2025 Los Angeles wildfires.

Thousands of survivors could be affected, according to a statement Monday from the California Department of Insurance. The agency said an expedited investigation found a pattern of “unlawful behavior” by State Farm, which received about 11,300 residential claims stemming from the fires.

On top of the penalties, the largest sought by the regulator after a disaster this century, the department is requiring State Farm to speed up payments to policyholders and resolve ...