The LA wildfires have exposed the US's broken insurance industry, leaving many homeowners struggling to recover from their losses. For Jessica and Matt Conkle, a midcentury ranch home lost to the fires, the experience was frustrating and dehumanizing. The couple received emergency assistance from State Farm, but the claims process was slow and contentious, with multiple adjusters and lowball estimates that left them feeling shortchanged.
The Conkles are not alone in their struggles. Department of Angels, a non-profit organization set up by government experts to assist fire survivors, has reported similar frustrations from homeowners across LA's fire-ravaged neighborhoods. Almost eight out of ten surveyed homeowners have faced obstacles such as multiple adjusters, lowball estimates, and poor communication.
The insurance industry's response to these challenges is seen as inadequate by many. State Farm, the region's largest writer of homeowner insurance, has faced criticism for its handling of claims, with many customers feeling that they are being trained not to answer their questions. The company's profits have soared in recent years, while its customers continue to struggle.
Consumer advocates argue that the industry is prioritizing profit over people, and that state regulators are too deferential to insurance companies. They point to California's department of insurance, which has been accused of being "captured" by the corporate interests it is supposed to police.
One consumer advocate, Joy Chen, has taken a particularly hard line against State Farm. She notes that the company failed to test smoke-damaged homes for carcinogens and other toxins, and declared those homes safe for habitation despite subsequent independent testing showing otherwise. The state Fair plan's policy on smoke damage was also challenged in court until it was deemed illegal.
Chen's organization has brought evidence of these issues to Los Angeles county officials, who have launched an investigation into State Farm's compliance with state insurance laws and regulations. The company has since unblocked claims that had been in limbo for months and started cutting checks for hundreds of thousands of dollars.
Experts argue that the insurance industry is not equipped to handle the scale and complexity of the climate crisis. Dave Jones, a former California insurance commissioner, believes that private insurance companies are too focused on profits and not doing enough to transition away from fossil fuels. He argues that state governments should step in to provide home insurance subsidies to lower-income families.
The crisis is far from over, with many homeowners still struggling to rebuild their lives after the fires. Chen sees the industry's opportunistic behavior as inexcusable at a time when people and communities are suffering. "We're not against the industry," she said. "We are simply against illegal conduct."
The Conkles are not alone in their struggles. Department of Angels, a non-profit organization set up by government experts to assist fire survivors, has reported similar frustrations from homeowners across LA's fire-ravaged neighborhoods. Almost eight out of ten surveyed homeowners have faced obstacles such as multiple adjusters, lowball estimates, and poor communication.
The insurance industry's response to these challenges is seen as inadequate by many. State Farm, the region's largest writer of homeowner insurance, has faced criticism for its handling of claims, with many customers feeling that they are being trained not to answer their questions. The company's profits have soared in recent years, while its customers continue to struggle.
Consumer advocates argue that the industry is prioritizing profit over people, and that state regulators are too deferential to insurance companies. They point to California's department of insurance, which has been accused of being "captured" by the corporate interests it is supposed to police.
One consumer advocate, Joy Chen, has taken a particularly hard line against State Farm. She notes that the company failed to test smoke-damaged homes for carcinogens and other toxins, and declared those homes safe for habitation despite subsequent independent testing showing otherwise. The state Fair plan's policy on smoke damage was also challenged in court until it was deemed illegal.
Chen's organization has brought evidence of these issues to Los Angeles county officials, who have launched an investigation into State Farm's compliance with state insurance laws and regulations. The company has since unblocked claims that had been in limbo for months and started cutting checks for hundreds of thousands of dollars.
Experts argue that the insurance industry is not equipped to handle the scale and complexity of the climate crisis. Dave Jones, a former California insurance commissioner, believes that private insurance companies are too focused on profits and not doing enough to transition away from fossil fuels. He argues that state governments should step in to provide home insurance subsidies to lower-income families.
The crisis is far from over, with many homeowners still struggling to rebuild their lives after the fires. Chen sees the industry's opportunistic behavior as inexcusable at a time when people and communities are suffering. "We're not against the industry," she said. "We are simply against illegal conduct."
... State Farm's priority should be helping ppl recover from these disasters, not just lining their pockets 
. The fact that they're training customers to not ask questions is insane 
. And the way they handled the smoke damage issue? Unacceptable 
. Consumers should have a voice in how insurance companies operate, and state regulators need to do better 
. It's time for change, especially when ppl are still struggling to rebuild their lives 
... I'm all for companies doing well, but when it comes at the expense of people's livelihoods, something needs to give 
.
. And lowball estimates? No thanks 
.
. We need to know exactly how these companies are operating and making sure they're following the rules 
. I'd love to see some reforms happen ASAP 
...
the fact that they failed to test smoke-damaged homes for carcinogens and still declared them safe is just plain crazy 
experts need to come up with a better system that prioritizes people's needs over profits. state govts should step in and provide subsidies to lower-income families who are getting screwed by the industry 
. And to think State Farm, one of the largest insurers in LA, is making record profits while its customers are left high and dry 
. I fear that without state intervention, companies will just keep prioritizing profits over people, leaving more families to suffer 
. It's like they're training them to shut down and give up 
.
, Joy Chen and Dave Jones are doing a great job of holding the insurance industry accountable 
. We need more people like them who care about putting people over profits 
. And honestly, it's time for state governments to step in and provide some real support to these families 
. This is not just about homeowners or insurance companies - it's about our community and our values 
How can an insurance company not do that and still expect to be trusted with people's livelihoods? It's like they're taking advantage of the most vulnerable folks during one of the toughest times in their lives. The fact that they've had to be forced to fix their mistakes is just appalling 
! I mean, I've seen State Farm try to weasel out of paying for damage that's clearly caused by their negligence. And now this whole LA wildfires thing has exposed them for what they really are: more interested in lining their own pockets than helping people recover from disasters. It's just not right 
. Joy Chen is totally right to call them out on this stuff, though - there's gotta be accountability for companies that are profiting off people's suffering. We need some real change in our insurance laws ASAP 
- it's like, one thing is that we need better weather control, but another thing is how are people supposed to recover from losing their homes? I mean, State Farm's handling of claims is all messed up 
. And the fact that they didn't even test for carcinogens in those smoke-damaged homes is straight-up gross 
. We need better regulation, stat! 
I'm just thinking, all these fires in LA and it's crazy how insurance companies are handling it 
.
. And let's not forget that this crisis is all about climate change... we can't just sit around and do nothing 
, and I started wondering if anyone has tried it with their dog? I mean, I've heard great things about it but I'm not sure if it's pet-friendly. My neighbor just got back from a hike in Big Sur and said it was stunning, but they had to take their furry friend off the trail for safety reasons... anyway, back to this insurance issue - I wonder if anyone else has tried to get help with repairs from State Farm? They seem like they're more interested in making a profit than helping people out 
. That makes total sense to me. The Conkles' story is just one example of how broken this system can be, but I'm glad there's someone like Joy Chen pushing back against it 
Consumer advocates like Joy Chen are fighting for justice and transparency, and we should support them. The state regulators need to step up their game too! 
.
. Consumer advocates are fighting for justice and transparency, and it's about time someone did 
. We need more people like her who are willing to speak truth to power 
. She's not afraid to speak truth to power and hold those companies accountable. I'm so glad the county officials are launching an investigation into State Farm's compliance