April 1, 2025
California Fair Plan and State Farm Underpaying Fire Victims
The 2025 Los Angeles wildfires have caused widespread devastation, displacing families and destroying homes. As victims begin the process of filing insurance claims, two of the biggest providers—California Fair Plan (CFP) and State Farm—are leading the charge in underpaying claims and violating key insurance regulations.
If you’re a victim of the 2025 wildfires, this information could directly impact your ability to recover your full insurance benefits.
Insurers Shifting the Burden of Investigation to Homeowners
Both CFP and State Farm are increasingly shifting their duty to investigate fire and smoke damage claims to policyholders—an illegal tactic under California law. According to the Cal. Fair Claims Settlement Practices Regulations, insurance companies are responsible for:
- Investigating the full extent of damage, including smoke and contaminant testing
- Assessing the cost to restore the property to pre-loss condition
- Completing the investigation within 40 days and issuing payment within 30 days of settlement
However, these insurers are instead demanding that homeowners arrange and pay for testing and damage assessments themselves—a direct violation of state law.
DOI March 2025 Bulletin Confirms Violation
On March 7, 2025, the California Department of Insurance (DOI) issued a bulletin stating that insurance companies cannot shift their investigative duties to the insured. This includes responsibilities such as:
- Testing for hazardous contaminants and toxins
- Providing expert estimates for full property restoration
- Determining the presence of smoke and ash infiltration
Failure to comply not only violates the law—it harms wildfire victims who are already facing significant emotional and financial burdens.
What This Means for LA Wildfire Victims
If you’re dealing with California Fair Plan, State Farm, or any insurer delaying, denying, or underpaying your claim, it’s time to take legal action. You should not be responsible for investigating your own disaster losses.
Our firm fights to:
- Ensure insurers follow their legal obligations
- Demand full testing and investigation at no cost to you
- Recover the maximum settlement for your total loss or smoke damage
Let a Fire Insurance Attorney Defend Your Rights~ The Law Eagles
Insurers are taking advantage of overwhelmed homeowners by ignoring regulations and shifting responsibilities. You don’t have to accept this. A seasoned fire insurance attorney will:
- Hold your insurer accountable under California law
- Ensure proper testing is performed to assess contamination and damage
- Fight for full compensation to restore your property
Get the Support You Deserve with The Law Eagles
The victims of the 2025 LA Wildfires deserve to be treated fairly. If your insurer is stalling or underpaying your claim, you have options.
📞 Take Action Today, call The Law Eagles – (833) 324-5399
Contact our fire damage attorneys for a FREE consultation. We’re here to fight for your rights, ensure your home is restored, and help you secure the benefits you’re legally entitled to.