What Really Happened in the State Farm Rate Case
March 10, 2026
Dear friends,
Last Friday night, after the close of business, the nation's largest consumer protection agency, the California Department of Insurance (CDI) announced a settlement in the massive State Farm rate case that has been unfolding for nearly two years.
The announcement looked routine.
But this fight was never just about a rate case.
It's about something much bigger:
Whether families who faithfully paid our premiums to insurers and taxes to our government can trust that these systems will deliver on their promises, so that we can recover.
A few of you have been here from the very start, when we first started realizing that some insurers were systematically denying families the benefits we'd paid for.
Since then, more than 10,000 Eaton, Palisades, Malibu and Topanga survivors and allies have joined this community.
So this felt like a good moment to pause and share the full story of where we've been with our fight to hold insurers accountable.
And to fill you in on what has been unfolding behind the scenes of the State Farm rate case.
Survivor leadership strengthening the system for everyone
In April 2025, on the 100-day anniversary of the fires, EFSN organized a press conference outside the State Farm catastrophe tent in Pasadena to share what survivors were experiencing.
Delayed claims.
Underpayments.
Families draining their savings while waiting for benefits they had already paid for.
A staggering 82% of State Farm policyholders affected by the fires reported delays or underpayments blocking their recovery, according to Department of Angels research.
A month later, at the Pali Strong forum attended by hundreds of survivors, Insurance Commissioner Ricardo Lara admitted that State Farm generates more complaints to his department than any other insurer.
So we asked a simple question:
Will you investigate State Farm's claims practices before approving more rate hikes?
He asked for a letter documenting the complaints.
We sent one immediately.
Here's what we sent:
May 12, 2025 EFSN Letter to Commissioner Lara
The next day, CDI approved a $750 million rate hike for State Farm.
That moment clarified something.
If families were going to receive the funds we are owed to rebuild our homes, survivors would need to come together with lawmakers and allies committed to our recovery.
With the help of Senator Sasha Renée Pérez, we began raising the alarm about State Farm's claims practices.
Eventually, our voices began to move the system. Rukmini Callimachi of The New York Times reported that survivor advocacy prompted CDI to open an investigation into State Farm.
Then came July.
At our six-month fire anniversary gathering, nearly 500 Eaton and Palisades survivors filled the Good Neighbor Bar.
Together we wrote 1,500 postcards to Insurance Commissioner Lara and Governor Gavin Newsom.
The message was simple:
Hold insurers accountable.
Families need the insurance money we paid for so we can get back home.
California needs an insurance system that works.
With thanks to whistleblowers, insiders and local law enforcement
At the same time, EFSN was assembling another piece of the puzzle.
When you build a network of 10,000 survivors and allies, people start calling.
Adjusters. Industry insiders.
Whistleblowers with a conscience.
Working with an insider from the very top levels at CDI, we compiled a document showing exactly what the Insurance Commissioner could do right now under existing law to stop delays and underpayments and release billions owed to survivors.
You can read it here:
Urgent CDI Actions to Stop Ongoing Insurer Misconduct After the Eaton and Palisades Fires
By August, every state legislator representing the Eaton and Palisades fires had joined EFSN in calling for these five urgent actions.
Still no action.
So we took another step.
We compiled The State Farm Files, nearly 500 survivor accounts mapped directly to violations of California insurance law.
We brought those cases to Los Angeles County Supervisor Kathryn Barger, who immediately directed County Counsel to launch an investigation.
Suddenly, State Farm was facing the kind of law enforcement scrutiny that could actually hold the company accountable, potentially even resulting in criminal charges.
That very day, the company began FedExing checks that had been frozen for months directly to survivors.
A Guardian deep dive by Andrew Gumbel into our first year of fighting for our insurance benefits helps explain why the company suddenly responded. A consumer expert noted that insurers spend enormous lobbying resources influencing the election and behavior of state insurance commissioners.
In that context, survivors going to the county was especially effective. It placed the evidence in the hands of a local official with the full powers of law enforcement.
Then came the Los Angeles Times investigation by Pulitzer prizer Paige St. John.
Despite thousands of survivor complaints filed with CDI, the paper reported that many were quietly closed with little regulatory action.
The investigation also revealed that a CDI compliance officer who called State Farm's claims practices “shoddy and shameful” had her pay cut after the company complained.
Think about that.
A regulator calls out insurer misconduct.
The insurer complains to CDI leadership.
The regulator's pay gets cut.
When survivors who've lost everything face systemic delays and underpayments, it raises a question: are the government leaders sworn to protect consumers instead shielding the insurers causing the most harm?
As a former Deputy Mayor of Los Angeles, I find it deeply disappointing that this is how our state government is functioning at survivors' hour of greatest need. It makes the role of the lawmakers who still insist on excellence in public service all the more vital.
The LA Times report prompted Senators Ben Allen and Sasha Renée Pérez to call for a Senate investigation into how the Department of Insurance handles L.A. fire survivor complaints.
(Quick note for those tracking the politics: yes, Ben Allen is running for insurance commissioner. Our mentioning his actions as a senator does not imply an endorsement. EFSN is fiscally sponsored and operates in compliance with 501(c)(3) rules. We do not endorse candidates.)
A behind-the-scenes battle inside the State Farm rate case
While survivors have been leading in public for an insurance system that does what it should, Consumer Watchdog Litigation Director Will Pletcher has been pressing the same case inside the rate proceeding itself.
Their lawyers and actuaries spent months digging through State Farm's filings. They demanded documents, challenged financial assumptions, and scrutinized the math line by line.
They raised the same question survivors had been asking publicly:
If an insurer is delaying or underpaying claims, should regulators really reward that company with massive rate hikes?
Will and the team repeatedly tried to connect State Farm's claims practices to the rate case. State Farm and the Department of Insurance resisted those efforts.
So they forced scrutiny on the numbers instead.
State Farm had originally asked regulators for huge increases, roughly 30% for homeowners and more than 50% for renters.
Consumer Watchdog's analysis showed the company could not justify increases of that scale based on the data it provided.
After months of analysis and negotiation, the settlement announced last week reduces State Farm's requested increases by about $530 million statewide, including required refunds to some policyholders who paid higher interim rates.
The agreement also includes additional consumer protections.
State Farm agreed not to implement new block non-renewals of homeowner policies during 2026, and agreed to additional renewal protections in LA fire zones.
Will and team also secured a framework allowing Los Angeles policyholder complaints to be forwarded through Consumer Watchdog to State Farm for special review.
Time will tell whether this new process improves claims outcomes. I've asked Will to let us know when their complaint portal is ready, so watch this space.
In practical terms, without Consumer Watchdog's intervention, Californians would likely be facing another half a billion dollars in insurance costs that State Farm had sought but could not justify with data, along with far fewer consumer protections.
For homeowners, the settlement means no increase beyond the interim rate already in place, even as insurance costs across California continue rising due to wildfire and climate risk.
For renters, the settlement results in less than a 1% increase over current rates. Condo owners will get a small refund and rate reduction going forward.
And the stakes go far beyond State Farm.
This rate case sets precedent for every other insurer in California.
The State Farm parody ad: “Don't live on a prayer”
Here's something fun: we released a spoof ad responding to State Farm's recent Super Bowl commercial featuring Jon Bon Jovi's song “Livin' on a Prayer.”
The parody highlights the painful reality that 4 out of 5 State Farm policyholders impacted by the L.A. fires are the ones living on a prayer when it comes time for their insurer to honor its contract.
And that every Californian needs insurance reform.
Learn more and sign our petition for insurance reform at:
fixinsurance.org
Watch and share the video here:
https://youtu.be/yPPT6TcpAGg
See and share the Instagram version here:
https://www.instagram.com/reel/DVhsXDegZik/?igsh=MzRlODBiNWFlZA%3D%3D
Are you in the EFSN Discord Yet?
Got a note this week:
Random thank you for your pioneering and consistent leadership. Doing my EFSN Discord homework for the week and found numerous helpful reminders. Thank you. This effort is qualitative difference making and you are its catalyst. No reply necessary. Just know that I speak for so so many.
If you're a survivor, or a nonprofit working with survivors, we warmly welcome you to walk the recovery journey alongside thousands of others across Eaton, Palisades, Malibu, and Topanga.
Every day, people are sharing and learning together about all the things. Insurance. Schools. Soils. Remediation. Construction technologies. Mental health. Recovery resources.
Real people connecting and collaborating through our recovery.
If you're a journalist, you are welcome too. Many reporters are already inside.
All reporting inside the Discord is off the record. No personally identifying information may be shared without explicit permission. The full media policy is available in the EFSN Resources channel.
If you're not inside yet, come join us!
To receive your Discord invite link, sign up for the newsletter and it will be sent to you automatically:
efsurvivors.net/newsletter
Income Taxes Q&A Webinar
Huge thanks to Public Counsel's Steph Carroll, CPA John Trapani, and EFSN members Cherry Lee and Wanda Dorgan for a deeply informative tax Q&A webinar.
Participants left feeling much better informed heading into tax season about how to handle upcoming insurance payments and settlements, whether grants or other forms of relief they have received may count as taxable income, and all the rest.
Watch the replay and read the transcript here:
efsurvivors.net/expert-resources
And thank you to Wanda for putting together a Google Drive with these helpful resources:
Fire Disaster Taxation Handout
IRS guidance links for disaster victims, including:
Involuntary conversions: Real estate tax tips
Involuntary conversion: Get more time to replace property
Frequently asked questions for disaster victims
Tax relief in disaster situations
https://drive.google.com/file/d/1rierxxue6_oga4Qeoep5H5DC7iim-Wl4/view?usp=sharing
Want to host a session at Spa for the Soul?
Do you help people breathe deeper, feel stronger, or find their footing after hard times?
In partnership with the Trauma Resources Institute, we're inviting wellness and mental health providers to lead 45-minute breakout sessions for fire survivors across Los Angeles at Virtual Spa for the Soul. Think meditation, art therapy, chair yoga, support circles, movement, or anything that helps people heal.
Sessions are free for survivors, and thanks to Goodwill Southern California, we can now host up to 1,000 participants and 100 breakout rooms.
Upcoming sessions: March 31 | April 29 | May 21 at 7 to 8:30p
Apply to host a breakout room here:
https://docs.google.com/forms/d/e/1FAIpQLSdgA0ZcHHZhYESAR62gp4_Vm0Rs1io4mhiFkNXpRmbfBflEPw/viewform?usp=sharing&ouid=109669146234343115081
Upcoming Events
“All the Walls Came Down” Screening and Discussion
Tuesday 3/10 | 6-7:30p
Vidiots, 884 Eagle Rock Blvd, Los Angeles
Join us for “A Night for Altadena.” The evening begins with a free screening of the Oscar-shortlisted short film All The Walls Came Down, followed by a conversation about recovery and rebuilding in Altadena.
The discussion features Ondi Timoner, Heavenly Hughes, Joy Chen, Randy Vance, David Timoner, and Lynn Fang. We expect the evening to feel more like a community town hall about what it will take to rebuild Altadena together.
Altadena Turnkey Rebuild Summit
Sunday 3/15 | 10a-2p
Loma Alta Park Gym, Altadena
This summit connects Altadena residents with vetted turnkey builders and organizations that can help manage the entire rebuild process.
Community partners, case management groups, Foothill Catalog, production builders, and county partners including the Assessor's Office and Public Works will host tables and speak on panels.
Prime Pizza will be free for everyone.
RSVP via Eventbrite:
https://www.eventbrite.com/e/altadena-turnkey-rebuild-summit-tickets-1983831856486?aff=oddtdtcreator&keep_tld=true
State of the Rebuild: Fundraiser and Panels on L.A. Recovery
Thursday March 19 | 4:30 to 8 PM
American Institute of Architects Los Angeles
4450 W Adams Blvd, Los Angeles
This event is especially for architectural design and building professionals. I'm very much looking forward to serving on the public policy panel hosted by Politico's Liam Dillon.
And a sincere thank you to the organizers for making this a fundraiser for the EFSN!
Tickets here:
https://www.zeffy.com/en-US/ticketing/annual-gala-2307
Have an event or survivor resource you'd like us to share in a future newsletter?
Email us all the details at: hello@efsurvivors.net
The fight that will shape whether families ever get back home
We never wanted to have to fight for our insurance benefits. We're busy enough struggling with displacement, insurance claims, financial insecurity, mental health, relationship strain, and everything else this recovery has put families through. But at this point we have no choice.
But at this point we have no choice.
An LA Times investigation by Liam Dillon, Ben Poston, Doug Smith and Jessica Garrison looked at the five major California fires before 2025. By 2025, only 38% of homes had been rebuilt.
The number one factor in whether families rebuilt was simple: whether insurance paid fully and on time.
So the fight for our insurance benefits is the fight for whether Los Angeles families will ever recover and rebuild.
It's Year Two. The news cameras have faded. Much of the initial philanthropy has moved on.
Now is the hardest part of recovery.
So this fight is not abstract.
It's about whether L.A. families receive the funds we already paid for, so that our recovery can move forward.
Thanks to thousands of courageous survivors, allies, and lawmakers working together, we are beginning to move the system.
With love,
Joy Chen
and the EFSN team
The Eaton Fire Survivors Network (EFSN) is the nation's largest survivor recovery hub, connecting more than 10,000 Eaton, Palisades, and Malibu fire survivors and allies. Through survivor leadership and coordination, we work to remove barriers and unlock resources so that recovery is accessible to everyone. Learn more: efsurvivors.net.
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