Homeowners reeling after State Farm allegedly stalls critical wildfire claims for months: 'A longstanding fight'

Homeowners in the Los Angeles area are suing a popular insurance company for allegedly mishandling claims during a crisis.

What's happening?

Thousands of Pasadena homes were destroyed by the Eaton wildfire. Months later, many homeowners are unable to return, and their insurance companies aren't making the process any easier.

Though Rossana Valverde's home is still standing, she and her family are unable to move back in as tests revealed "high levels of arsenic, lead and nickel," according to AlterNet.

State Farm has been processing her $300,000 claim for over 100 days. Rossana isn't alone — fire survivors are banding together to sue State Farm and other insurance companies for limiting coverage, hiking rates, and dropping policyholders after the fires.

Why are rising rates concerning?

Wildfires are growing more intense, and the climate crisis may be to blame. The warming planet creates ideal conditions for wildfires: dry vegetation, hot weather, and strong winds.

According to the Center for American Progress, "North American wildfires are starting earlier in the year, lasting longer, and burning larger swaths of land."

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As more homes become susceptible to wildfires and other extreme weather events, insurance companies are raising prices and dropping coverage.

It's not just California. Homeowners across the country, from Utah to Florida, are experiencing drastic increases in their annual insurance premiums, and some policies have been dropped without warning.

What's being done to protect homeowners?

Amy Bach, the president of nonprofit organization United Policyholders, has been fighting to protect insurance customers for over 30 years. She called the claims process, especially those involving smoke damage, "a longstanding fight," per AlterNet, but it's a fight she and others won't give up on.

In California, Insurance Commissioner Ricardo Lara issued a one-year moratorium to prevent insurance companies from dropping coverage in affected areas. Other lawmakers are taking notes and proposing laws to prevent insurance companies from significantly increasing rates or issuing nonrenewals during times of crisis.