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Wildfire Victims’ in Limbo as Fight with Insurers Hits Another Snag

SOUTHERN CALIFORNIA, JUL 18 – State regulators consider mediation for 400 unresolved wildfire insurance complaints after more than 1,000 claims; $67 million recovered for policyholders so far, officials said.

  • After more than 1,000 complaints from fire victims about claims handling, California regulators are considering mediation for some unresolved cases, despite concerns from advocates about potential harm to policyholders.
  • The Department of Insurance reports that fire victims have recovered $67 million through the complaint process, with complaints being received since the Palisades and Eaton fires, which caused up to $45 billion in damages.
  • Attorneys for fire victims have filed lawsuits against insurers regarding smoke-damage claim handling, while State Farm faces scrutiny from a complaint investigation related to its practices.
  • Consumer advocacy groups express mixed feelings about mediation, with some fearing it may allow insurers to avoid accountability for wrongful actions.
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Los Angeles Times broke the news in Los Angeles, United States on Friday, July 18, 2025.
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