State Farm is being accused of canceling thousands of fire insurance policies in California right before the massive wildfires. More than 10,000 homes and businesses have been destroyed as multiple wildfires continue to ravage parts of Los Angeles County,

Pacific Palisades, the Los Angeles neighborhood that's been devastated by the Palisades Fire, is emblematic of the insurance nightmare increasingly facing homeowners residing in regions prone to climate disasters.

State authorities previously listed the Palisades as one of the five Southern California areas with the highest concentration of potential wildfire risks. The community also is among the areas most impacted by an unavailability of insurance coverage.

In 2019, the number of homeowners’ policies in California that were not renewed jumped by more than thirty per cent. In 2023, two giant insurers, State Farm and Allstate, announced that they would stop writing new policies for various forms of property insurance in California.