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Jan. 28, 2026

Palisades homeowners sue State Farm over alleged underinsurance

Pacific Palisades homeowners accuse State Farm of deliberately underestimating rebuilding costs, winning an unusual writ of attachment as the insurer argues policyholders bear responsibility for adequate coverage.

As Los Angeles moves past the one-year anniversary of the devastating Palisades and Eaton wildfires, an ongoing lawsuit against State Farm by Pacific Palisades homeowners alleges the insurer deliberately underestimated reconstruction costs and didn't honor a full-coverage policy.

State Farm argued in court filings that California law makes it the policyholder's responsibility to be sure they have adequate coverage.

Unusually, the plaintiffs' attorneys won a w...

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