Survivors of the Eaton fire gathered in Pasadena Thursday morning to denounce the inappropriate claims of policyholders who allegedly suffered the fire damage from the state farm.
Speaking on the state farm’s disaster claims tent on Colorado Avenue, the organization urged California Insurance Commissioner Ricardo Lara to conduct a formal investigation into the insurance giant, claiming a series of delayed and rejected claims left wildfire victims in a horrible financial position to return to contaminated homes.
The demonstration comes a week after state farms proposed an emergency rate of 17% at an administrative hearing held in Auckland.
State Farms said the rate hike was necessary to “help stabilize the state farm’s financial position” and prevent carriers from “further limiting” their ability to provide home insurance in California.
Last month, Lara approved the interest rate request on a “temporary” basis, awaiting the signature of the administrative judge.
Fire victims described the rate hike requirement Thursday as the latest application in the state farm series betrayal series.
“The disaster began with the Eaton fire, but for us, the real trauma began with us filing a smoke damage claim to the state farm.” 100 days after the wildfire first erupted, Davis' five-bedroom home in Altadena was still covered with toxic soot and ash.
Davis said that over the past three months, State Farm “delayed, stonewall and denied the help we have entitled to.”
Representatives at the state farm did not respond to the New York Times' comments Thursday.
Davis said the company also told her that her policy only covers the ashes that blow up her home, not the asbestos contained therein.
“Should we scrub asbestos ourselves in dangerous goods suits and respirators?” said Davis, a 35-year policy holder. “If it's not that cruel, it would be ridiculous.”
Under California Proposal 103, insurance companies seeking to raise interest rates must prove that these hikes are necessary before they can be approved.
According to Carmen Balber, executive director of Consumer Advocacy for Nonprofit Consumer Watchdogs, state farms have not met the legal standards for raising interest rates.
Balber said in a press release that the requirements for the statement farm should be approved, which would set “a dangerous precedent for insurers to bypass consumer protection and transfer costs to struggling families.”
Balber said in an interview that Lala hasn’t done enough to “stand up” and that the insurers threatened to withdraw from the state due to rising costs.
State Farm has reportedly filed more than 12,500 fire and car claims related to the January 7 fire and paid customers more than $3 billion. The company expects total spending related to wildfires to be $7.9 billion, although its net loss is estimated at $600 million after reinsurance payments.
But Balber insists that the company's high-risk policy holders who are still in California leave the state.
Lala's representative did not respond to a request for comment Thursday.
Victims of the Eaton fire said Thursday that they were in trouble, taking out their credit cards to the greatest extent and jumping from one rent to another while waiting for a settlement of the claim.
They spent a place among three hotels and two sets of friends before Kelsey Szamet and her family moved into their current rental in Pasadena. She said that she kept “destroying” for her two young daughters.
“There are a lot of big feelings that aren't typical emotional reactions for them,” Szamet said, adding that she herself struggles to “exhaust on the cellular level” every day.
Szamet said she believes State Farm’s delays and rejections are part of a deliberate effort to exhaust people until they no longer seek relief.
But Shawna Dawson Beers, founder of the beautiful Altadena Facebook group with 10,000 members, said Altadena residents remain committed to keeping state farms accountable and keeping fire victims owed their relief.
“We will continue to speak out for our neighbors, for ourselves and for the community,” Bells said. “We are not going to go quietly.”
