Trump Slams Insurance Giant State Farm’s Response to California Wildfires

President Donald Trump has said the federal government will be "looking into" the response of property insurers to the deadly wildfires in California, accusing major carrier State Farm of falling short of its obligations to policyholders.

In a post on his Truth Social on Tuesday, Trump said he had met with California elected officials to discuss the response of the insurance industry to the fires that ravaged homes in Los Angeles County last year.

"It was brought to my attention that the Insurance Companies, in particular, State Farm, have been absolutely horrible to people that have been paying them large Premiums for years, only to find that when tragedy struck, these horrendous Companies were not there to help!" wrote Trump.

Trump said that he had asked Environmental Protection Agency Administrator Lee Zeldin to review how insurance carriers had responded to the fires, and list companies that had failed to meet their obligations to policyholders.

"State Farm, and others, should get their act together, and treat people fairly. The Government is looking into this matter as we speak!" the president wrote.

An EPA spokesperson tells Realtor.com that the agency is working to produce the list of insurers as quickly as possible for the president.

"The Trump EPA has built strong community ties in the areas of Los Angeles destroyed by last year’s wildfires and will be leveraging these relationships and direct feedback from local leaders and residents to put this together," the spokesperson said. "The best way for insurance companies to help is to immediately pay out what they owe so victims can rebuild their lives."

Trump's comments mark the latest fallout from the devastating Eaton Fire and Palisades Fire in January 2025, which together claimed 31 lives and destroyed some 18,000 homes and other structures.

Following the fires, some insurers faced complaints that they were slow, restrictive, or insufficient in paying out claims to homeowners.

California’s insurance commissioner opened a formal investigation into State Farm’s handling of thousands of wildfire claims, citing possible violations of consumer protection laws. That investigation is ongoing, with results expected later this spring.

State Farm—the largest insurer in California—also came under criticism from consumer groups for seeking a 30% rate hike for homeowners there, saying claims from the fires had left it dangerously undercapitalized.

However, a recent proposed settlement could spare some State Farm policyholders from further premium increases and provide refunds to others.

A spokesperson for State Farm referred questions about Trump's criticism to the company's published statement on its response to the L.A. wildfires.

The company says it has served customers with more than 13,500 property claims and issued $5.7 billion in payments, with total payments related to the fire expected to reach roughly $7 billion.

“State Farm insured more people impacted by the Los Angeles wildfires than anyone else," State Farm CEO Jon Farney said in a statement. "We will remain committed to helping throughout the entire recovery process. In partnership with others, insurance is an essential part of helping people rebuild their lives.”

California's insurance challenges

Even before the historic 2025 wildfires, it had become harder for California homeowners to secure insurance in the state .

California remains at the forefront of natural disaster-related vulnerability. The Realtor.com® 2025 Climate Risk Report found that 5.6% of U.S. homes—worth $3.2 trillion—face severe or extreme wildfire risk, and nearly 39% of that value is in California.

Among all the metros in the Golden State, Los Angeles ($476.5 billion), Riverside ($474.4 billion), and San Francisco ($274.6 billion) have the highest combined value of homes that have an increased likelihood of being destroyed in a wildfire in the next 30 years.

Similar to Florida, California has faced issues with insurers limiting coverage or pulling out of the state, limiting competition and leaving homeowners with fewer options.

Among others, State Farm and the Hartford stopped writing new policies in the state prior to the 2025 wildfires, citing growing natural disaster risks.

This article has been updated with comment from the EPA.