Los Angeles County said it launched an investigation into the California FAIR Plan Association for its handling of claims from the January 2025 Eaton and Palisades Fires.
County Counsel said the probe focuses on potential violations of California’s Unfair Competition Law and follows resident complaints about delays, underpayments, claim denials and refusals to pay for testing and remediation of toxic contamination; County Counsel formally notified FAIR Plan that any unlawful or unfair business practices must stop and that the company must come into compliance with state law.
“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 . The county said survivors told officials they have struggled to get timely relief from FAIR Plan and that many rely on the FAIR Plan as their last option for coverage.
A July 2026 survey from the Department of Angels found that 67% of FAIR Plan customers were dissatisfied, the county said. The survey found FAIR Plan customers were more likely than customers of other insurers to report lowball estimates, poor communication, conflicting or inaccurate information and claims denials; it also found that over 50% of respondents reported having multiple adjusters assigned to their claims.
“Fire survivors who paid their premiums deserve fair and timely compensation,” said Third District Supervisor . The county said Horvath added Los Angeles County will use every tool available to protect survivors and hold accountable insurers that fail 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.”
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 noted it filed a lawsuit against State Farm on Aug. 31, 2026, over handling of Eaton and Palisades Fire claims and that it announced an investigation of Farmers on Sept. 9, 2026.
The county said the California FAIR Plan is a private association made up of all insurers licensed to write property insurance in California; it is funded primarily through the policies it sells, is not a state agency and serves as an insurer of last resort for homeowners who cannot buy coverage in the traditional market. County Counsel sent FAIR Plan a letter seeking information and documentation on its business practices; the county said the letter is available on its website and that more information is available through County Counsel’s Affirmative Litigation and Consumer Protection Division.
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 2 times in this story.
Portrait: Los Angeles County Board of Supervisors / Wikimedia Commons (Public domain)
Sources & methodology
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