Last spring, victims of the Los Angeles wildfires complained loudly and en masse over how State Farm General was handling their insurance claims, especially for smoke damage. <\/p>\n
Insurance Commissioner Ricardo Lara<\/a> urged them to lodge formal complaints with the department.<\/p>\n \u201cThat\u2019s how we track and how we monitor, and we make sure that we follow through … make sure that those claims are being addressed,\u201d he told several hundred fire victims in a Zoom forum in May.<\/p>\n Nearly a year later, however, many homeowners and their representatives say the promise was hollow. They voice mounting frustration over how the California Department of Insurance investigated their complaints about State Farm.<\/p>\n More than a dozen homeowners and their representatives told The Times that the department did little to resolve a wide range of complaints, or prevent new problems, in State Farm\u2019s handling of their claims.<\/p>\n \u201cSeventy percent of insured Eaton and Palisades fire survivors are facing delays and denials that are impeding their recovery,\u201d said Joy Chen, executive director of the Eaton Fire Survivors Network, citing a survey by the nonprofit Department of Angels. \u201cThat is evidence of the failure of this department to do its job.\u201d <\/p>\n Policyholders shared complaints lodged against State Farm over denials to pay for the cleanup of fire toxins, rebuild estimates well below actual construction costs and delayed checks for living expenses. To the state they cited frequent turnover in adjusters and demands to sign legal papers agreeing to forego future reimbursement for personal items without itemized receipts.<\/p>\n Now, they said, State Farm is cutting off prepaid rentals and leases for fire victims who aren\u2019t close to returning home. <\/p>\n Most of the fire victims said they were left in the dark about their cases, and were told to stop trying to communicate with their complaint handlers. Some said their cases were closed before their insurance disputes were settled.<\/p>\n \u201cIt doesn\u2019t feel like it\u2019s an actual, legitimate organization that\u2019s meant to protect consumers,\u201d said Len Kendall, who lost his home to the Pacific Palisades fire.<\/p>\n Kendall initially complained to the state about State Farm in July, citing delays in handling his total loss claim, dealing with multiple adjusters and struggles to get reimbursed for living expenses. Later he said he was told stop communicating with the state and to send his records \u201cdirectly and solely\u201d to State Farm.<\/p>\n \u201cWe\u2019re told that they\u2019re tracking information and speaking to the insurers, but we have no idea what is happening,\u201d Kendall said. \u201c\u200aWhen it comes to the [insurance department], we\u2019re all totally in the dark.\u201d <\/p>\n A spokesperson for State Farm declined to address complaints from L.A. fire victims.<\/p>\n A representative for the state insurance department declined to comment on its handling of complaints against State Farm.<\/p>\n The agency did say it had \u201crecovered\u201d more than $210 million for fire victims \u201cthrough its intervention and aggressive advocacy on these complaints.\u201d <\/p>\n \u201cWe do our best to approach every wildfire survivor with empathy and understanding,\u201d Michael Soller, spokesman for the insurance department, said late Wednesday. \u201cOur goal is helping people recover fully, fairly, and quickly. We hold ourselves to the highest standards.\u201d<\/p>\n He encouraged those with insurance disputes to contact the department. \u201cWe will do our best to expedite their claims,\u201d he said.<\/p>\n The mistrust between fire victims and the department has been deepened by newly released records showing the department disciplined one its senior complaint handlers after she criticized State Farm over its claims handling, according to personnel records reviewed by The Times.<\/p>\n In a July letter to a State Farm case manager, Coleen Vandepas \u2014 a 32-year-veteran of the department who had previously been commended for her work on behalf of policyholders \u2014 accused the insurer of \u201cshoddy\u201d and \u201cshameful\u201d<\/a> handling of an L.A. fire claim, including claiming it did not have test results within the insurer\u2019s possession. She demanded the company apologize to its policyholder. In another policyholder\u2019s case, she said State Farm engaged in a \u201cpattern and practice\u201d<\/a> of delay.<\/p>\n Records show that days later, a State Farm lawyer called a top-level executive<\/a> at the insurance department to complain about Vandepas\u2019 statements.<\/p>\n Vandepas\u2019 State Farm caseload was subsequently reassigned and she was docked 10% of her pay, according to personnel records. Her supervisors said Vandepas had made \u201caccusatory\u201d and \u201cimproper\u201d remarks about State Farm, and cited a LinkedIn post State Farm had called attention to, in which she characterized insurance company threats to leave California as \u201cwailing\u201d by companies that wanted to \u201cmake huge amounts off the backs of the citizens of California.\u201d<\/p>\n A state personnel board law judge reviewing the discipline called Vandepas\u2019 remarks \u201crude and disparaging\u201d and the full board this month rejected her appeal. A new appeal has been filed with the California Public Employee Relations Board, noting Vandepas was also protected as a union steward and was in part punished for raising internal workload issues.<\/p>\n The workplace action has angered advocates for wildfire victims. <\/p>\n \u201cThis sends a message to every single person who works at [the California Department of Insurance]: \u2018You may be next,\u201d said Chen, a former deputy mayor of Los Angeles. <\/p>\n Through its corporate media office in Illinois, State Farm declined to comment on the sanctions against Vandepas.<\/p>\n \u201cWe are not a party to the case in question,\u201d the Illinois-based insurer said in a statement. \u201cWe have ongoing relationships with state regulators so we can best meet the needs of our customers.\u201d<\/p>\n Investigations into State Farm<\/p>\n State Farm was in the midst of dropping some 72,000 policies in California, and seeking a $1.3-billion rate hike, when the Jan. 7, 2025, firestorm ravaged Los Angeles. The disaster killed 31, destroyed more than 16,000 structures, and left many others unable to return to their homes. As of November, the insurance department reported more than 42,000 home and commercial insurance claims. <\/p>\n By far, the largest share of those claims are with State Farm General, the California subsidiary of State Farm Mutual. A survey of about 2,300 five victims by the Department of Angels noted State Farm policyholders reported higher rates of claim denials, low estimates and other complaints than customers of other insurers.<\/p>\n Los Angeles County in November opened its own investigation<\/a> into State Farm\u2019s claims handling, demanding the insurer turn over reams of information<\/a>, including company policy guides, training materials for handling fire and smoke claims, among other documents. <\/p>\n