Survivors of the Eaton fire gathered in Pasadena on Thursday to protest State Farm’s handling of insurance claims following the devastating blaze. The group called on California Insurance Commissioner Ricardo Lara to investigate the insurance giant for alleged delays and denials of claims, which have left many victims in financial distress and unable to return to their homes.
The protest took place in front of State Farm’s catastrophe claim tent on Colorado Boulevard. Victims, like Wendy Davis, shared their struggles, stating that State Farm has “delayed, stonewalled, and denied” the assistance they need. Davis, whose home remains covered in toxic soot and ash, expressed frustration over the company’s handling of her smoke damage claim. She criticized State Farm for sending inexperienced adjusters and for limiting coverage to only ash, excluding asbestos.
State Farm has defended its actions, stating its focus is on supporting customers in their recovery from the fire, which is the largest the company has experienced in California. The company has paid over $3 billion in claims related to the fires and projects total payouts of $7.9 billion. However, it also seeks approval for a 17% emergency rate hike, down from an initial 22% request, to stabilize its financial position.
Consumer advocacy groups, like Consumer Watchdog, argue that State Farm’s request for a rate hike is unjustified and sets a dangerous precedent. They claim that the company profits too much from high-risk policyholders to justify leaving the state.
Commissioner Lara has acknowledged concerns about State Farm’s financial stability but insists that his office is actively ensuring insurance companies fulfill claims promptly. As the situation unfolds, victims continue to face uncertainty, with many resorting to credit cards and temporary housing while waiting for claim resolutions.
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