A California judge has ruled the state's bare-bones home insurance program's handling of smoke damage claims is unlawful, a decision that could have wide-ranging implications as insurers increasingly deal with the aftermath of wildfires. It's a significant court decision that favors property owners in a state where the risk of catastrophic wildfires has increasingly intensified alongside a brewing home insurance crisis that exposes just how limited coverage can be in a disaster. On Tuesday, Los Angeles Superior Court Judge Stuart M. Rice issued a decision in the case brought by homeowner Jay Aliff, the plaintiff who first sued in 2021 to challenge the California Fair Access to Insurance Requirements Plan, also known as the FAIR Plan.

California's top insurance regulator is launching a probe into State Farm over its handling of claims from Los Angeles-area wildfires that broke out in January. The investigation comes after survivors of the Palisades and Eaton fires said the insurance company delayed or mishandled claims. California's insurance commissioner says the investigation will review whether the company complied with state consumer protection and claim-handling laws. State lawmakers have said State Farm customers are facing emotional and financial hardships because of delays in claims and denials.

California's top insurance regulator says he will approve an emergency request from State Farm to raise home insurance rates for roughly a million customers if the company can justify the hike at a public hearing. The company said it needs to quickly rebuild its capital to prevent a "dire" financial situation after the Los Angeles wildfires destroyed thousands of homes. State Farm is California's largest insurer. The company wants to increase premiums on homeowners by 22%. State Insurance Commissioner Ricardo Lara's office said Friday he will make the final decision in April. Consumer advocates say Lara's decision to call for a public hearing is a win for consumers.