LOS ANGELES, CA — Los Angeles County launched an investigation into the claims handling practices by the California FAIR Plan Association for policyholders impacted by the January 2025 Eaton and Palisades fire, it was announced Wednesday.
The county's investigation focuses on potential violations of California's Unfair Competition Law and comes in the wake of complaints from residents about delays, underpayments and denials of wildfire claims. County officials also said residents have complained about the association's refusals to pay for testing and remediation of toxic contamination.
A representative for FAIR Plan did not immediately respond to a request for comment.
County Counsel has formally notified FAIR Plan that if it is engaging in any unlawful or unfair business practices, the company must immediately stop such conduct and comply with state law.
The California FAIR Plan is a private association composed of all insurers licensed to write property insurance in the state. It is funded primarily through the policies it sells to customers.
The FAIR Plan is not a state agency and is not funded by state or other public agencies, according to the county. It's an insurer of last resort for property and fire insurance for homeowners who cannot buy coverage in the traditional market.
"After having their lives devastated by the fires, Altadena residents should not be victimized yet again by their own insurance company," L.A. County Fifth District Supervisor Kathryn Barger said in a statement.
Barger, who represents Altadena and Pasadena, emphasized that the FAIR Plan serves as a last option for coverage and it is "inexcusable that people are struggling to get the relief and recovery help they need when they need it most."
A July 2026 survey from the Department of Angels, a nonprofit organization, found that 67% of FAIR Plan customers were dissatisfied, the most of any insurer. Embold Research surveyed 2,023 adults in Altadena, Pacific Palisades, Pasadena and Malibu from June 3-15, 2026, for the Department of Angeles report.
The survey found that FAIR Plan customers were significantly more likely than customers of other insurers to have received lowball estimates, poor communication, conflicting or inaccurate information, and claims denials. The survey 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 — not delays, denials, or a choice between an unsafe home and financial devastation," L.A. County Third District Supervisor Lindsey P. Horvath said in a statement.
Horvath, whose district encompasses Pacific Palisades and the city of Malibu, added the FAIR Plan is the third insurer Los Angeles County is investigating over its treatment of fire survivors.
"We made a promise to stand with Palisades and Eaton Fire survivors through recovery, and we intend to keep it. Los Angeles County will use every tool available to protect survivors and hold accountable those who fail them," Horvath said in her statement.
County Counsel is empowered by statute to investigate and prosecute violations of the Unfair Competition Law on behalf of the People of the State of California and seek restitution, civil penalties, and injunctive relief for any violations.
County Counsel Dawyn Harrison said her office is committed to thoroughly investigating FAIR Plan's actions and to ensure they are treating claimants fairly.
"The homeowners who rely on FAIR Plan are more vulnerable than others because their options for insurance are severely limited," Harrison said in a statement.
This announcement follows the county filing a lawsuit on August 31, 2026, against State Farm for violating the Unfair Competition Law and other laws in its handling of fire survivor claims following the 2025 Eaton and Palisades Fires. On September 9, 2026, the county announced it was investigating Farmers Insurance over its handling of fire survivor claims following the 2025 Eaton and Palisades Fires.
Both State Farm and Farmers Insurance have maintained
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