Los Angeles County announced it launched an investigation into the California FAIR Plan Association’s handling of claims for homeowners affected by the January 2025 Eaton and Palisades Fires. County Counsel said the probe focuses on potential violations of California’s Unfair Competition Law after residents reported delays, underpayments, denials and refusals to pay for testing and remediation of toxic contamination.
A July 2026 survey from the Department of Angels found 67% of FAIR Plan customers were dissatisfied; the survey said FAIR Plan customers were significantly more likely than customers of other insurers to receive lowball estimates, poor communication, conflicting or inaccurate information and claims denials, and that over 50% reported having multiple adjusters assigned to their claims.
"After having their lives devastated by the fires, Altadena residents should not be victimized yet again by their own insurance company," said Los Angeles County Fifth District Supervisor . Third District Supervisor said survivors deserve fair and timely compensation and that the county will use its authorities to protect them.
County Counsel Dawyn R. Harrison said, "We are committed to thoroughly investigating FAIR Plan’s actions and making sure they are treating claimants fairly and resolving their claims quickly and in full compliance with the law. The homeowners who rely on FAIR Plan are more vulnerable than others because their options for insurance are severely limited. FAIR Plan must treat them fairly."
The county’s release notes that the California FAIR Plan is a private association of insurers, funded primarily through the policies it sells; it is not a state agency and operates as an insurer of last resort for homeowners who cannot obtain coverage in the traditional market.
County Counsel has formally notified FAIR Plan and sent a letter seeking information and documentation; the letter is available on the county website. This action follows the county’s Aug. 31, 2026, lawsuit against State Farm and the Sept. 9, 2026, announcement that it was investigating Farmers Insurance.
County Counsel said it is empowered by statute to investigate and prosecute violations of the Unfair Competition Law and to seek restitution, civil penalties and injunctive relief; the county provided a link to its Affirmative Litigation and Consumer Protection Division for more information: https://counsel.lacounty.gov/alcp/.
Local
Kathryn Barger
Supervisor, Fifth District, Los Angeles County Board of Supervisors · Republican
Named once in this story.
Portrait: Los Angeles County Board of Supervisors / Wikimedia Commons (Public domain)
Local
Lindsey P. Horvath
Supervisor, Third District, Los Angeles County Board of Supervisors · Democrat
Named once in this story.
Portrait: Los Angeles County Board of Supervisors / Wikimedia Commons (Public domain)
Sources & methodology
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