The insurance company canceled thousands of California homeowners' insurance policies last year in an attempt to avoid "financial failure."

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,

State Farm has dropped around 1,600 policies in Pacific Palisades, where the Palisades Fire has devastated the area. Homeowners in Pacific Palisades have increasingly relied on the FAIR Plan for fire insurance,