The record
Documented.
Sourced. On the record.
Regulatory penalties, market conduct findings, court rulings, and settlements over how property insurers handled claims. Every entry links to a primary source or established reporting. Each one ends with a general tip you can use on your own claim.
How to read this record. We describe each matter as the record supports it. A lawsuit or regulatory accusation is an allegation until it is decided. Many settlements are made without any admission of wrongdoing. Verdicts can be changed on appeal, and we note it where we know. Found an error or a newer development? Tell us.
California exam of LA wildfire claims alleges 398 violations in 114 of 220 sampled State Farm files
State Farm General Insurance Company
On May 4, 2026, the California Department of Insurance filed an Accusation and Order to Show Cause against State Farm General Insurance Company, following a market conduct examination ordered in June 2025 into its handling of January 2025 Los Angeles wildfire claims. The Department alleges 398 violations of the Unfair Insurance Claims Practices Act and related regulations in 114 of 220 sampled claims, plus 34 more based on consumer complaints, including missed investigation and payment deadlines, unreasonably low settlement offers, repeated adjuster reassignments, and failures to give written denials of smoke-damage testing. These are allegations; any penalties (up to $5,000 per violation, or $10,000 if willful) would be set by the Commissioner only after a hearing before an administrative law judge, and as of October 2026 no decision had been reported. State Farm said it "strongly disagree[s] with the Department's characterization," rejected any suggestion that it engaged in a general practice of mishandling or intentionally underpaying wildfire claims, and said it will respond through the process.
For your claim: Track every statutory deadline (15-day acknowledgment, 40-day accept/deny, 30-day payment in California) in writing, and demand a written explanation whenever smoke testing or a line item is refused.
- California Department of Insurance press release: Accusation and Order to Show Cause against State Farm General (May 4, 2026)
- Insurance Journal: California Taking Action Against State Farm Over LA Wildfire Claims (May 4, 2026)
- Insurance Journal: California Commissioner Investigating State Farm's Handling of LA Wildfire Claims (June 12, 2025)
Texas fines Travelers units $70,000 for raising home premiums over properly remediated water claims
Five Travelers insurers, incl. Travelers Lloyds of Texas Insurance Co.
In Consent Order No. 2026-9871 (April 8, 2026), the Texas Commissioner of Insurance concluded that five Travelers companies violated Tex. Ins. Code §544.353 and 28 TAC §21.1004(c) by assigning premium consequences (through surcharge, loss-free or claims-free discount, or tier rules) on homeowners policies for appliance-related claims that had been properly remediated. The companies updated their systems in May 2025 and, after what they said was an inadvertently overlooked category (appliance supply lines), again in February 2026. They agreed to a $70,000 administrative penalty and restitution with interest for policies effective Jan. 1, 2022 through Feb. 15, 2026.
Amount: $70,000 penalty plus restitution
For your claim: In Texas, an appliance-related water claim that was properly remediated and inspected or certified by a qualified remediation professional cannot be used to set your homeowners rate; check your renewal.
Florida fines eight property insurers a combined $2.075 million over Ian and Idalia claims handling
American Coastal ($400K), American Mobile Insurance Exchange ($400K), Clear Blue ($400K), Monarch National ($325K), Tower Hill Prime ($250K), TypTap ($150K), Centauri Specialty ($100K), Sutton National ($50K)
Florida OIR announced penalties totaling $2,075,000 against eight insurers after targeted market conduct exams of Hurricane Ian and/or Idalia claims. OIR said findings across the exams included adjusters not properly appointed, late acknowledgment of claim communications, missing estimate disclosure statements, failure to provide the Homeowner Claims Bill of Rights, failure to pay interest owed, and, in several exams, claims not paid or denied within 90 days. Findings varied by company; not every finding applies to every insurer listed.
Amount: $2,075,000 combined
For your claim: If your hurricane claim was not paid or denied within the statutory deadline, ask in writing for the interest you may be owed.
Florida penalizes Slide Insurance $250,000 after exam of Hurricane Ian and Idalia claims handling
Slide Insurance Company
Florida OIR's targeted exam report (Aug. 28, 2025) reviewed 323 sampled Ian claims and 179 Idalia claims. In the Ian sample, Slide used adjusters not properly appointed in 9.3% of files, omitted required disclosure statements with partial estimates (12.7%) and partial payments (16.4%), and missed the 90-day pay-or-deny deadline in 2.2%. In the Idalia sample, 36.9% of files lacked the partial-estimate disclosure. On Nov. 3, 2025, OIR announced a $250,000 penalty against Slide based on the exam, citing use of unappointed adjusters and missing disclosure statements.
Amount: $250,000
For your claim: A partial estimate or partial payment is not necessarily final; Florida requires the insurer to tell you that in writing.
California regulator files action alleging at least 418 violations by the FAIR Plan, centered on smoke-claim denials
California FAIR Plan Association
On July 31, 2025, Insurance Commissioner Ricardo Lara filed an Order to Show Cause against the California FAIR Plan Association alleging at least 418 violations of California consumer-protection laws, including Insurance Code §790.03 (such as misrepresenting policy terms, failing to investigate claims fairly, and denying claims without a reasonable basis). The Department says the action centers on smoke-damage claims denied under the FAIR Plan's "permanent physical damage" standard. The FAIR Plan responded by requesting an administrative hearing; as of February 2026 the Department said hearings before an administrative law judge were expected later in 2026. These are allegations; no decision or settlement had been reported as of October 2026.
For your claim: If your FAIR Plan smoke claim was denied, you can file a complaint with the California Department of Insurance at 1-800-927-4357.
Judge rules FAIR Plan smoke-damage policy terms unlawful, including "sight and smell" test
California FAIR Plan Association
In a case brought by policyholder Jay Aliff over smoke damage from the 2020 Mountain View fire, Los Angeles Superior Court Judge Stuart M. Rice ruled in June 2025 that the FAIR Plan's smoke-damage provisions provided less coverage than California's standard fire policy requires. The court rejected the requirement that smoke damage be visible or detectable by smell to an average person and found the "direct physical loss" limitation unclear to policyholders. A FAIR Plan spokesperson said it had already dropped the "sight and smell" test and was updating its policy language, and said it was unlikely to appeal.
For your claim: If a FAIR Plan (or any) adjuster denies smoke, soot, or ash damage because it "can't be seen or smelled," ask for the policy basis in writing and consider independent lab testing.
Florida exam of Citizens finds claims-handling exceptions in Hurricane Ian and Idalia claim samples
Citizens Property Insurance Corporation
Florida OIR's market conduct exam report (Jan. 24, 2025) reviewed random samples of 323 Ian and 286 Idalia residential claims. Exceptions included missing disclosure statements with preliminary or partial estimates (2.8% of Ian files, 9.8% of Idalia files), claims not paid or denied within the statutory deadline (about 1%), unpaid interest on late payments, and adjusters not properly appointed. The largest error rate (19.8% of Ian files) was failing to upload estimates, photos, and sketches within five days of inspection as Citizens' own manual requires. The report states no penalty.
For your claim: Citizens must include a written disclosure with any preliminary or partial estimate or payment, and must pay interest when it pays late; ask for both.
Mississippi Supreme Court affirms $10 million punitive award against USAA over Katrina claim
United Services Automobile Association
On Dec. 5, 2024, the Mississippi Supreme Court affirmed a 2022 Jackson County jury verdict awarding the Minor family $10 million in punitive damages and $457,858.89 in extra-contractual damages (attorneys' fees) over USAA's handling of their Hurricane Katrina claim on their Ocean Springs home, and separately awarded the family $4.5 million in attorneys' fees. Five justices joined the majority; two others agreed the jury's awards should stand but dissented on the added fees, and one justice dissented. The opinion recounts that USAA's engineering firm reported wind damage to several parts of the home, while USAA's June 2006 payment on the structures was $37,245.86. On Oct. 2, 2025, the court denied USAA's motion for rehearing by an equally divided vote. USAA obtained an extension to seek U.S. Supreme Court review; we found no record that a petition was filed. USAA said it was very disappointed and that the evidence did not support the punitive damages and fees.
Amount: $10,457,858.89 jury award affirmed, plus $4,500,000 in attorneys' fees awarded by the court
For your claim: Insurers' own engineering reports and claim notes can become key evidence; keep every report, estimate, and letter.
- Mississippi Supreme Court opinion, USAA v. Estate of Minor, No. 2023-CA-00049-SCT (Dec. 5, 2024)
- Insurance Journal: Miss. Supreme Court Orders USAA to Pay $15M in Hurricane Katrina Bad-Faith Claim (Dec. 9, 2024)
- WLOX: MS Supreme Court declines to rehear landmark USAA Katrina insurance case (Oct. 2, 2025)
- U.S. Supreme Court docket No. 25A690
Florida fines Heritage Property & Casualty $1 million over Hurricane Ian claims handling
Heritage Property & Casualty Insurance Co.
Under a consent order signed May 9, 2024, Heritage agreed to pay a $1 million fine plus $10,000 in administrative costs after a market conduct exam of its Hurricane Ian claims. In a sample of 324 claims, examiners found 98 claim communications not acknowledged within the then-required 14 days and 70 claims not paid or denied within 90 days, plus interest miscalculated on 59 of 216 paid claims and adjusters not properly licensed or appointed. Heritage's CEO told the Tampa Bay Times the company was aware of the issues and had added a compliance director and new claims software.
Amount: $1,000,000 fine + $10,000 administrative costs
For your claim: Florida sets deadlines to acknowledge and to pay or deny property claims, and late payments carry interest; track those dates.
Jury found seven commercial property insurers, including a Chubb unit, acted in bad faith on flood claim; case later settled
Chubb Custom Insurance Company (one of seven insurers on a shared commercial property policy)
In Indiana GRQ v. American Guarantee & Liability Ins. Co., a South Bend warehouse owner claimed more than $24 million in flood losses; the seven insurers sharing the policy paid about $2.68 million. A jury found all seven breached the policy and acted in bad faith, awarding over $24 million in compensatory damages and $12.5 million in punitive damages against each insurer. On March 22, 2024, the court denied the insurers' post-trial motions and upheld the verdict except for apportioning certain damages by policy share. The insurers appealed, but in September 2024 all appeals were voluntarily dismissed. The district court's October 2024 orders refer to a mediated settlement and state that the judgment was satisfied; settlement terms were not made public.
Amount: $12.5 million punitive against Chubb Custom in the jury verdict (total verdict over $112 million; resolved by confidential settlement in 2024)
For your claim: When several insurers share one commercial property policy, each can be held separately liable for bad faith.
Texas consent order: State Farm Lloyds underpaid prompt-pay interest on late-paid property claims
State Farm Lloyds
In Commissioner's Order No. 2023-7843 (March 10, 2023), the Texas Department of Insurance found that State Farm Lloyds had, since September 2017, applied a lower statutory interest rate to late-paid force-of-nature property claims regardless of whether a lawsuit had been filed, underpaying the prompt-payment interest owed. The company identified 7,871 affected claims, reported restitution of about $1.43 million to policyholders, and agreed to a $350,000 administrative penalty in a consent order.
Amount: $350,000 penalty; ~$1.43 million restitution
For your claim: When a property claim is paid late, check whether the statutory prompt-pay interest was included and calculated at the correct rate.
Texas exam finds late claim decisions in 3 of 50 sampled Travelers homeowners claims; $7 million-plus refunded for self-reported rating errors
Travelers Personal Insurance Co. (exam); affiliates (rating refunds)
In Consent Order No. 2022-7511 (Sept. 20, 2022), a TDI market conduct exam of Travelers Personal Insurance Co. covering 2019 found that in 3 of 50 sampled claims (6%) the company did not notify claimants in writing of acceptance or rejection within 15 business days after securing final proof of loss, which the order concluded violated Tex. Ins. Code §542.056(a). The order also addressed two rating errors the companies self-reported: a system defect that failed to update roof age after claim-paid roof replacements (11,323 policies; about $6.48 million refunded with interest) and a credit-scoring error (about 6,200 policies; about $863,000 refunded with interest). No fine was assessed.
Amount: About $7.3 million restitution (no fine)
For your claim: In Texas, an insurer generally must accept or reject a claim in writing within 15 business days after receiving the information it requested (or tell you it needs more time); after a claim-paid roof replacement, make sure your renewal reflects the new roof.
CDI market conduct exam cites 118 violations tied to FAIR Plan smoke-damage claim handling
California FAIR Plan Association
The California Department of Insurance's targeted market conduct exam of the FAIR Plan (as of March 18, 2021; adopted May 25, 2022) reviewed 259 claim files and cited 418 alleged violations overall. The Department says 118 of them were linked to smoke-damage claim denials, including use of a policy definition requiring "permanent physical changes" to property.
For your claim: Regulators have documented problems with FAIR Plan smoke-claim denials; challenge a smoke denial in writing.
Farmers agrees to $25 million Oklahoma settlement and reopens about 1,000 earthquake claims
Oklahoma's Attorney General and Insurance Commissioner announced on April 5, 2021 that a state investigation found Farmers had denied or failed to properly pay about 1,000 earthquake claims. Farmers agreed to reopen the claims for re-evaluation by an independent administrator, with additional payments if damages exceed the settlement amount. Farmers did not admit wrongdoing and said it handled the claims in good faith.
Amount: $25,000,000
For your claim: Before treating a catastrophe denial as final, check whether a regulatory settlement has reopened it.
Colorado Supreme Court refuses to reduce statutory award against American Family for delayed fire claim
American Family Mutual Insurance Company
After a 2009 fire at the Barrigas' apartment building, a jury found $136,930.80 in benefits was unreasonably delayed or denied under C.R.S. 10-3-1116, which allows double damages. In American Family v. Barriga, 2018 CO 42, the Colorado Supreme Court held the award may not be reduced by benefits that were unreasonably delayed but eventually paid.
Amount: $273,861.60 statutory award plus $9,270 contract damages
For your claim: Under Colorado law, an insurer that unreasonably delays payment can owe double damages even if it pays later.
Jury found State Farm submitted a false Katrina flood claim to the NFIP; verdict upheld on appeal
State Farm Fire and Casualty Company
In a False Claims Act case brought by Cori and Kerri Rigsby, independent adjusters who had worked State Farm Hurricane Katrina claims, a federal jury in Mississippi found in April 2013 that State Farm Fire and Casualty Company submitted a false flood claim to the National Flood Insurance Program for the McIntosh home in Biloxi, for which it had paid the $250,000 flood building limit. An engineering report State Farm commissioned had attributed the damage primarily to wind; a second report from the same firm attributed it primarily to water. The court entered $758,250 in trebled damages and penalties plus about $2.9 million in relators' fees and expenses. The Fifth Circuit affirmed the verdict in July 2015 and allowed further discovery into other claims, and the U.S. Supreme Court unanimously affirmed in December 2016 that a seal violation did not require dismissal. State Farm maintained the allegations were groundless and said it followed government guidelines in handling Katrina claims.
Amount: $758,250 judgment (plus ~$2.9 million fees)
For your claim: Where wind and flood both occur, request copies of every engineering or cause-of-loss report in your file, since separate reports can reach different conclusions about what caused the damage.
FEMA offers to review Hurricane Sandy flood claims for about 142,000 NFIP policyholders
FEMA / NFIP Write-Your-Own carriers
After allegations that some insurers' damage assessments were improper, FEMA said in May 2015 it would offer nearly 142,000 NFIP policyholders with Sandy claims an individual review of their claims. Insurers denied wrongdoing. A January 2018 DHS Inspector General audit (OIG-18-38) reported that FEMA had offered about $270 million in additional payments to 14,751 policyholders through the review, and found that FEMA lacked adequate controls to support some of those payments.
Amount: About $270 million in additional payments offered (per DHS OIG, as reported by Newsday)
For your claim: Flood claim payments can be reopened and revised; keep your documentation and challenge payments that look too low.
Federal court faults withheld Sandy engineering report, orders report drafts produced in all Sandy cases
Wright National Flood Insurance Co. (NFIP Write-Your-Own carrier)
In Raimey v. Wright National Flood Insurance Co. (In re Hurricane Sandy Cases), Magistrate Judge Gary R. Brown found on Nov. 7, 2014 that a revised 'peer review' report, prepared without a site visit, reversed the field engineer's finding that flood forces had damaged the Long Beach, NY home beyond repair, and that the original report was not produced despite court orders. The court called the conduct 'reprehensible,' sanctioned the carrier's defense law firm, and ordered defendants in all Sandy cases to produce engineering report drafts and notes. Wright's counsel maintained Wright did nothing wrong.
For your claim: If a denial rests on an engineering report, ask for every draft and the field engineer's original findings.
Mississippi Supreme Court: USAA must prove excluded storm surge caused Katrina home loss
United Services Automobile Association
In Hoover v. USAA (decided Nov. 7, 2013), the Mississippi Supreme Court reversed a directed verdict for USAA on the Hoovers' unpaid dwelling losses, holding that under the policy the insurer must prove that excluded storm surge caused the loss, and sent the case back for a jury. It affirmed the directed verdict for USAA on emotional-distress and punitive-damages claims.
For your claim: Under Mississippi law, the insurer can carry the burden of proving an exclusion applies in wind-versus-water disputes; don't accept a denial just because you can't prove the cause yourself.
Court approves Louisiana Citizens class settlement over Katrina and Rita claim-adjustment delays
Louisiana Citizens Property Insurance Corp. (separate from Florida Citizens)
A Louisiana district judge gave final approval to a settlement resolving remaining claims in a class action over Louisiana Citizens' handling of Hurricane Katrina and Rita claims, paying remaining claimants $4,500 each. Citizens had already paid more than $100 million to roughly 18,500 policyholders after losing its appeals of the earlier judgment.
Amount: $4,500 per remaining claimant (Citizens budgeted about $40 million; its board authorized up to $61 million in 2012)
For your claim: Class actions over claim delays can pay policyholders years later; keep your claim records long after the storm.
Seventh Circuit affirms bad-faith finding against Safeco over denied water and mold claim
Safeco Insurance Company of America
In Miller v. Safeco Insurance Co. of America (7th Cir., June 25, 2012), the court affirmed a district court judgment, after bench trials, that Safeco owed $485,100.64 for water and mold damage to the Millers' Wisconsin home and had no reasonable basis for denying the claim (bad faith). The Millers discovered the damage before Safeco mailed them the policy, and the court held under Wisconsin law that Safeco could not rely on exclusions not disclosed to them by then. The district court denied punitive damages. The claim arose in 2005, before Liberty Mutual acquired Safeco in 2008.
Amount: $485,100.64 plus interest and bad-faith damages (bad-faith amount not stated in the opinion)
For your claim: Get your complete policy; an insurer may not be able to rely on exclusions it never gave you.
Louisiana Supreme Court reinstates class judgment against Louisiana Citizens for late Katrina adjustment
Louisiana Citizens Property Insurance Corp. (separate from Florida Citizens)
On Dec. 16, 2011, the Louisiana Supreme Court ruled 4-3 in Oubre v. Louisiana Citizens to reinstate a class judgment holding that Citizens failed to begin adjusting more than 18,000 Hurricane Katrina claims within the 30 days state law requires, and that the statutory penalty does not require a showing of bad faith. The reinstated judgment was about $93 million plus interest; Citizens paid about $104 million in July 2012. Regulators stressed the penalties were for late adjustment, not underpayment.
For your claim: Some states require an insurer to begin adjusting a claim within a fixed number of days, and missing it can trigger penalties even without bad faith.
TWIA settles Hurricane Ike suits by about 2,400 Galveston County homeowners, reported at $189 million
Texas Windstorm Insurance Association
In mid-July 2010, TWIA settled lawsuits brought by about 2,400 Galveston County homeowners whose homes were destroyed in Hurricane Ike (Sept. 2008), in a settlement reported at about $189 million. The homeowners' lawyer said the settlement information was confidential, and a state district court temporarily blocked its release. A Houston Chronicle report, cited by the Texas Tribune, said the plaintiffs' firm earned about $86 million in fees; that figure was not officially confirmed. The reports do not indicate any admission of liability by TWIA.
Amount: About $189 million (as reported)
For your claim: When wind and flood damage are disputed after a hurricane, separate documentation of wind damage matters.
Federal jury awards printer $14.5 million after The Hartford denied fire claim; case settled for $18 million
Hartford Casualty Insurance Co.
After a March 2008 fire at Genesis Press in Greenville, S.C., Hartford Casualty denied the claim, asserting the fire was arson committed by or at the direction of the owners. On May 20, 2010, a federal jury found for Genesis Press on breach of contract and bad faith and awarded $14.5 million in actual damages; no punitive damages were awarded. Hartford appealed, and on June 25, 2010 the case settled for $18 million, according to a later federal bankruptcy court order.
Amount: $14,500,000 verdict; settled for $18,000,000
For your claim: A property claim denied on suspicion of arson without direct evidence can be challenged in court.
Eighth Circuit upholds $2.3 million bad-faith verdict against American Family over denied fire claim
American Family Mutual Insurance Company
American Family denied a $50,000 fire claim on a duplex, contending the insured was responsible for arson. A federal jury in North Dakota found for the insureds on breach of contract ($48,414.97) and bad faith ($1.15 million actual plus $1.15 million punitive damages). The Eighth Circuit affirmed on Aug. 14, 2009 (Moore v. American Family).
Amount: $2,348,414.97
For your claim: An arson-based denial must be backed by evidence; courts can award bad-faith and punitive damages when it is not.
Nationwide settles national homeowners class action over contractor overhead and profit
Nationwide Mutual Insurance Co. and affiliates
In Alexander v. Nationwide, plaintiffs alleged Nationwide underpaid structural-loss claims by leaving out general contractor overhead and profit when three or more trades were involved. Eligible class members with claims from 1996 through March 20, 2009 could receive 20% of the amount previously paid for repairs, minus any overhead and profit already paid. Nationwide settled without admitting wrongdoing. Nationwide said it had properly resolved the claims and settled to avoid the cost of continued litigation.
For your claim: If repairs need three or more trades, check whether your estimate includes general contractor overhead and profit.
Federal jury awards Slidell-area homeowner $2.8 million against Allstate over Katrina wind claim; case later settled
Allstate Insurance Co.
On April 16, 2007, a federal jury in New Orleans found Allstate underpaid Robert Weiss for wind damage to his Slidell-area home and awarded more than $2.8 million, including a $1.5 million penalty for failing to pay promptly, according to AP. Allstate had attributed most of the damage to storm surge. The jury foreman said jurors were troubled that Allstate relied on an engineer who wrote his report before visiting the home. Allstate said it acted in good faith, and after trial it asked U.S. District Judge Sarah Vance for a new trial or a reduced award. Before the judge ruled, the parties settled in June 2007 on undisclosed terms.
Amount: $2.8 million jury verdict; settled post-trial on undisclosed terms
For your claim: If a denial rests on an engineering report, ask whether and when the engineer actually inspected the property.
Nationwide settles Katrina lawsuits by up to 227 Mississippi Gulf Coast policyholders
Nationwide Mutual Insurance Co.
Nationwide agreed to an out-of-court settlement with up to 227 Gulf Coast homeowners who sued over Hurricane Katrina claims denied on wind-versus-storm-surge grounds. Terms were not disclosed. In the earlier Leonard v. Nationwide trial (2006), the court had largely upheld Nationwide's water-damage exclusion.
For your claim: After a hurricane, document wind damage carefully and get independent estimates; wind and flood are often handled under separate policies.
State Farm reaches 2007 Katrina deal with Mississippi AG; about $80 million to settle 600-plus policyholder suits
State Farm Fire and Casualty Company
In January 2007 State Farm reached an agreement with Mississippi Attorney General Jim Hood that resolved his civil suit and criminal investigation over Hurricane Katrina wind-versus-water claim denials. Under the deal it agreed to pay about $80 million to settle lawsuits by more than 600 policyholders and to commit at least $50 million to reopen and review roughly 35,000 coastal claims. Coverage reported no admission of wrongdoing; a State Farm spokesman said the agreement reduced the time, risk, and expense of individual litigation. A federal judge declined to approve the class portion, and claims were instead reopened through a separate agreement with the Mississippi Insurance Department; a later dispute between Hood and State Farm over the deal was settled in 2008.
Amount: ~$80 million plus at least $50 million claim review fund
For your claim: A denial based on flood or "anti-concurrent causation" language is not always final; ask whether your claim is eligible for re-review, and get the basis for any denial in writing.
Farmers agrees to $1 million settlement with California over claims-handling delays
Farmers Insurance Exchange, Fire Insurance Exchange, Mid-Century Insurance Co., Truck Insurance Exchange
In a settlement announced in January 2006, the California Department of Insurance cited about 1,000 violations of the Insurance Code and Fair Claims regulations in handling roughly 350 claims (complaints filed 2001–2004; violations from January 2002 to August 2004). Most involved delays: not starting investigations within 15 days, not notifying policyholders that more time was needed, and not paying within 30 days after accepting liability. Farmers agreed to pay $1 million, plus $125,000 more if it did not improve its practices. Farmers said the issues were administrative and reporting matters and did not involve non-payment or underpayment of claims.
Amount: $1,000,000 (plus $125,000 contingent)
For your claim: California sets hard deadlines for acknowledging, investigating, and paying claims; record every date and cite them if your claim stalls.
Florida exam of Citizens' 2004 hurricane claims: 47 of 100 sampled claims documented as acknowledged within 14 days
Citizens Property Insurance Corporation
Florida OIR's target exam (as of Nov. 4, 2005) of Citizens' handling of 2004 hurricane claims found that 47 of 100 sampled claims were acknowledged within the required 14 days; 6 more showed attempts to contact the claimant within 14 days, and 22 could not be verified because Citizens could not provide an acknowledgment date. In a separate sample, Citizens could not produce 15 selected claim files. OIR directed corrective action on acknowledgment and record-keeping, and Citizens described new procedures and a claims-tracking system. The report states no monetary penalty.
For your claim: Keep your own dated record of when you reported the claim and every contact; the insurer's records may be incomplete.
Texas appeals court upholds bad-faith finding against Fire Insurance Exchange in mold case but cuts verdict; case later settled
Fire Insurance Exchange
In Allison v. Fire Insurance Exchange, a homeowner's water-damage claim became a mold dispute and a jury returned a verdict of more than $32 million. On Dec. 19, 2002, the Austin Court of Appeals affirmed findings that the insurer breached its duty of good faith and fair dealing and about $4.0 million in actual damages, but reversed the $12 million punitive and $5 million mental-anguish awards and remanded attorney fees. Both sides sought Texas Supreme Court review (No. 03-0312). In March 2004, before that court ruled, the parties settled on confidential terms and the appeal was dismissed.
Amount: $4,006,320.72 actual damages affirmed on appeal (case later settled; terms confidential)
For your claim: A slow water claim can grow into a far larger loss; document every delay and push for prompt mitigation in writing.
Market context
Developments that shape the claims environment but aren’t findings of misconduct.
- State Farm (Jul 2026): Context, not misconduct: State Farm General, the California Department of Insurance, and Consumer Watchdog settled the full rate hearing in March 2026, and the Insurance Commissioner signed a final order adopting it in July 2026. The 17% homeowners interim rate remains; condo increases were reduced to 5.8% and rental-dwelling increases to 32.8%, with refunds plus 10% interest back to June 1, 2025, while renters rates were set at 15.65%. [1][2]
- California FAIR Plan (Feb 2026): Context: The California Department of Insurance said in February 2026 that its examination, completed in January 2026, found the FAIR Plan had not complied with 17 critical recommendations on financial condition, governance, and consumer protections. No penalty was announced in connection with the examination. [1]
- State Farm (May 2025): Context, not misconduct: After the January 2025 Los Angeles fires, California approved an emergency interim rate increase for State Farm General (17% homeowners, 15% condo/renters, up to 38% rental dwellings) effective June 1, 2025, conditioned on a $400 million surplus note from its parent company and a bar on new block non-renewals through the end of 2025. [1][2]
- California (all insurers) (Mar 2025): Context: California Department of Insurance Bulletin 2025-7 directed insurers to fully investigate smoke-damage claims, not deny them without appropriate investigation, and pay for professional testing where warranted. [1]
- State Farm (Mar 2024): Context, not misconduct: State Farm General announced it would not renew about 30,000 California homeowners, rental dwelling and other property policies and about 42,000 commercial apartment policies, citing inflation, catastrophe exposure and reinsurance costs. [1]
- State Farm (May 2023): Context, not misconduct: State Farm General stopped accepting new applications for California homeowners and other property/casualty business effective May 27, 2023, citing construction costs, catastrophe exposure and reinsurance conditions; existing policies were not affected at that time. [1][2]