When one of the largest insurance providers in the country faces a government investigation, homeowners everywhere should pay attention. In California, State Farm is under intense scrutiny after it pulled back from the market, stopped writing new policies, and recently received approval for an interim emergency rate hike.
These developments have triggered a formal investigation by the California Department of Insurance (CDI). While the headlines may focus on the Golden State, the ripple effects could impact policyholders nationwide.
If you’re a homeowner in Texas or Louisiana, what’s happening in California could be a sign of what’s to come. And if you’ve already had a claim denied, delayed, or underpaid, you’re not alone.
California Puts State Farm Under the Microscope
In May 2025 state regulators approved a 17% statewide premium increase for State Farm’s California home insurance customers to help the company recover financially in the wake of the LA wildfires. State Farm had originally proposed a 22% hike for homeowners but reduced the request during a hearing before an administrative judge. The final rate structure also included a 38% increase for rental property owners and a 15% increase for tenants.
Then, on June 12, Lara announced that the California Department of Insurance had launched a formal Market Conduct Examination into State Farm. The investigation was prompted by what regulators described as a “significant” volume of complaints from Los Angeles wildfire survivors, many of whom alleged unjustified delays, denied payments, inconsistent communication with multiple adjusters, and poor documentation handling.
Lara emphasized, “No one should be left in uncertainty, forced to fight for what they are owed, or face endless delays that often lead consumers to give up.” The Department will examine State Farm’s claims processes, adjuster practices, internal documentation, and overall compliance with California’s consumer protection laws and regulatory oversight.
Why This Should Concern Homeowners Everywhere
If State Farm claims it can’t afford the risk in California, what does that mean for homeowners in hail-ravaged Texas or hurricane-prone Louisiana? These states are no strangers to billion-dollar disasters, and the insurance industry is increasingly looking for ways to shift that risk, often back onto the policyholder.
While this particular investigation is limited to California, the tactics being examined—delays, denials, underpayments, and rate manipulation—are not. Insurance companies often apply similar strategies across multiple jurisdictions.
In our experience at Daly & Black, the same complaints surfacing in California have long been familiar to our clients in the Gulf South.
What Homeowners Are Already Experiencing
Across the country, policyholders insured by State Farm have voiced concerns about how claims are being handled:
- Delayed inspections after disasters, leaving families in limbo.
- Underpaid repair estimates that fall far short of actual costs.
- Policy cancellations following claims or renewals in high-risk areas.
Many homeowners are also reporting issues with their home insurance claims being closed without proper explanation—or simply being ignored.
When your home insurance company is not responding to your claim, the frustration can quickly turn into financial distress. Unfortunately, these are not isolated events. They are part of a wider pattern that deserves national attention.
What to Do if You’re Getting the Runaround
If you’re struggling with an unresponsive or unreasonable insurer, here’s what you can do:
Document Everything
Keep records of all emails, letters, texts, and phone calls related to your claim. This documentation can be crucial if your insurer tries to deny facts or shift timelines later.
Request Written Explanations
If your claim is denied, delayed, or underpaid, demand a written explanation from your insurer. Under most policies, you have a right to know the specific reasons behind any decision that impacts your coverage.
File a Complaint
If you’re hitting a wall with your insurer, escalate the issue to your state regulator. Filing a formal complaint may prompt a faster resolution or trigger a broader investigation.
Speak to an Attorney
If you’re getting nowhere on your own, consult a first-party insurance attorney. They can assess your situation, handle communications, and file suit if necessary to recover what you’re owed.
If your state farm home insurance payment was unfairly low or your claim was closed without cause, don’t accept that outcome without a fight.
Daly & Black Is Watching—and Fighting Back
At Daly & Black, P.C., we represent homeowners and policyholders—not the insurance companies. We’ve gone up against the biggest names in the industry, including State Farm, and we know how to hold them accountable. Our firm has offices in Texas, Denver and Louisiana, and our legal team understands how to navigate the regional nuances of insurance disputes.
We have an unmatched track record in first-party insurance claims, including those involving wind, hail, fire, and flood losses. If your insurer is dragging its feet, underpaying, or outright denying your claim, we don’t just push back—we go ALL IN.
FAQ
What should I do if State Farm closed my homeowners claim without payment?
Request a written explanation and consult with an attorney. Many claim denials can be challenged, especially if they were made in bad faith or without proper documentation.
Can I sue State Farm for denying my homeowners claim?
Yes. If your denial was unjustified or violates the terms of your policy, you may have a legal claim for breach of contract and bad faith.
One State’s Investigation, Every Homeowner’s Problem
The California investigation into State Farm isn’t just a local issue, it’s a national red flag. If one of the largest insurers in America is backing away from claims and raising rates in one region, policyholders everywhere should brace themselves.
Whether it’s wildfires, hurricanes, or hail, if State Farm is not paying homeowners claims, the consequences can be life changing.
If you’re dealing with a delayed or denied claim, don’t let the insurer control the outcome. Contact Daly & Black, P.C. today—and let us fight to get you every dollar owed to you under your policy.