PASADENA, Calif. — As State Farm pursues a 17% rate increase for home insurance, survivors of the Eaton Fire Thursday urged state Insurance Commissioner Ricardo Lara to launch a formal investigation into what they describe as widespread delays, denials and unresolved claims by the nation's largest insurer following January's wildfires.

Nine survivors of the Eaton Fire and longtime State Farm policyholders held a news conference outside the insurer's Pasadena tent Thursday to deliver a collective message: "State Farm is failing California families and must be held accountable."

The group is part of the Eaton Fire Survivors Network (EFSN), a 1,700-member coalition advocating for recovery after the devastating fire burned more than 14,000 acres, killed at least 17 residents and destroyed hundreds of structures in the Altadena area.

"Most people assume that if you pay your premiums, your insurer will be there when disaster strikes," Joy Chen, a leader of the EFSN, said during the news conference. "But for many State Farm policyholders, the fire was just the start of their trauma. Each day since then, their financial and emotional devastation has grown because of State Farm's actions."

The group urged state leaders not to support the insurer's request for a rate increase — the sixth of its kind in six years.

"We're here to help our customers recover and we empathize with those who are rebuilding their lives. As of April 16, we've received approximately 12,500 total claims related to the fires and have paid over $3 billion to our customers," according to a statement from State Farm General Insurance Company.

"Our focus continues to be on supporting our customers in their recovery from the largest fire event we have ever experienced in the state. Our claim handlers remain on the ground assisting customers with their claims. Customers should continue to directly reach out to us with claim questions or concerns. We actively work with each of our customers to understand the facts of their loss, identify the damages and applicable coverage, and ultimately resolve their claim," the statement continued.

In February, State Farm officials submitted a request to Lara for approval of an emergency interim rate increase, citing January's wildfires had financially impacted them as they awaited the Insurance Department's decision on rate requests made last summer. According to the insurer, they expect to pay more than $7 billion worth of claims as a result of the fire emergencies.

After a public hearing last week, Lara's department and State Farm reached an agreement. A judge still needs to approve it before it's official.

Under the agreement, starting in June, policyholders could see an average increase of 17% for home insurance. State Farm initially sought a 22% increase. Additionally, rate increases of 15% for renters and condos and of 38% for rental dwellings would take effect.

A final decision could be announced within the next few weeks.

According to Lara's department, the interim rates are necessary to prevent State Farm, which holds 20% market share in California, to go bankrupt. As part of the deal, the insurer would provide $400 million from its parent company, State Farm Mutual, to the state. It would also commit to not renewing policies through the end of 2025.

On Thursday, Chen disputed those claims.

"State Farm isn't just refusing to pay what they owe to Eaton Fire survivors, they want to charge us more for the privilege of being their customers," Chen said. "And Insurance Commissioner Ricardo Lara is on the verge of rewarding them. His job is to protect consumers, not reward corporate misbehavior."

Kelsey Szamet, a mother of two children whose life was uprooted by the Eaton Fire, said that in the 100 days since the fire, their State Farm adjuster has never set foot inside their home. While their home survived, she said they have dealt with smoke damage and contamination — issues she says State Farm has not taken into account.

"They've told us it's fine for our children to sleep on beds contaminated with lead, even though there's no EPA-approved method for cleaning soft goods exposed to it," she said.

According to Szamet, her family spent $199,000 restarting their lives, draining savings and maxing credit cards. They've only been reimbursed $54,000 from State Farm.

"We felt lucky our home was saved. But that relief didn't last. We just want our children to come home to a place that won't make them sick. We're asking State Farm to do what they promised — to help make our homes livable again. That's not asking too much. That's the bare minimum," Szamet said.

Andrew Wessels, a father of a 1-year-old baby and 5-year-old kindergartner, echoed Szamet's sentiments. He added that his family has been unable to return home because of the dangerous levels of lead dust. 

"Rather than restore our home to safety after the Eaton Fire, they've suggested we simply perform 'basic cleaning' and return our children to rooms where lead dust coats their toys, clothing and play areas," Wessels said.

Ciressa Henderson, a fourth-generation Altadenan, alleged State Farm has failed to meet its obligations.

"We lost the home we rented in the fire," Henderson said, noting that she and her sister had to move seven times. "After 20 years of paying State Farm without ever filing a claim, they've given me the worst time over a $16,000 renters policy."

The Eaton Fire Survivors Network recently sent Lara a letter documenting their members' experiences with the insurer. Chen said the accounts highlighted five patterns that policyholders felt or experienced with State Farm: feelings of betrayal; systematic stonewalling; toxic homes and inadequate remediation; financial devastation as the insurer delays or disputes claims; and crushing emotional toll.

Chen noted that if State Farm receives approval for their rate request, the hike could cost homeowners an average of $460 a year, with families in wildfire zones paying more.

Consumer Watchdog Executive Director Carmen Balber added, "Last week's proceedings made it clear: State Farm's request does not meet the legal standard for a rate increase. Approving it would set a dangerous precedent, letting insurers bypass consumer protections and shift costs onto struggling families."

Chen emphasized that the number one factor in whether Altadena recovers is access to their insurance payouts. She urged fire survivors and impacted policyholders to sign onto their letter at efsurvivors.net and to share it.

"...Because next time, it may be your family counting on that payout," Chen added.