Eaton Fire survivors blast State Farm over insurance payment delays
Eaton Fire survivors blasted State Farm for insurance payment delays during a press conference on Thursday.
"Our pleas, questions and assertions just go into the black hole," resident Wendy Davis said. "State Farm has delayed, stonewalled and denied us the help we're entitled to."
Start Farm recently asked for an emergency rate increase, arguing that it needs to boost capital to avoid an increasingly dire financial situation. The company initially proposed its emergency insurance rate increase because of the destructive Los Angeles wildfires, including the Eaton and Palisades fires — the second and third-most destructive fires in California history, which destroyed a combined 16,248 buildings and damaged thousands more.
"I understand the cost of insurance is going to have to go up in some cases," said State Senator Sasha Renee Perez, who represents Altadena. "I want for those increases to be predictable and not to be sudden and so large, 17% is a lot."
Perez said she's heard differing accounts about how insurance companies have responded. Last week, State Farm presented its case for the rate increases to a judge in Oakland after the state insurance commissioner, Ricardo Lara, gave the company provisional approval for its emergency request.
"We're waiting for the judge to give us the recommendation. That's part of the process," Lara said. "We need to get to the bottom of what's happening with State Farm and their financial situation."
Many policyholders asked why the proceedings did not include public comment and why Lara didn't attend them.
"As the final arbiter, I cannot be in those hearings," Lara said. "This is kind of unprecedented for us. I felt it was important to have a private, separate hearing where I cannot be involved because I am going to be the one that finally makes that decision."
In the meantime, Lara and Perez said there's a need to create statewide smoke damage standards for insurance coverage because they don't exist.
"The disaster began with the Eaton Fire," Davis said. "But for us, the real trauma began when we filed a smoke damage claim."
In a written statement, State Farm said they are working with its customers to resolve their claims. As of Wednesday, the insurance giant said its received about 12,500 claims related to the fires and paid out $3 billion to its customers.
"We're here to help our customers recover and we empathize with those who are rebuilding their lives," State Farm wrote. "Our focus continues to be on supporting our customers in their recovery from the largest fire event we have ever experienced in the state. Our claim handlers remain on the ground assisting customers with their claims."
