U.S. Sen. Hawley demands State Farm pay policyholders for torando damage

U.S. Sen. Josh Hawley (R-Missouri) has sent a letter to State Farm’s CEO demanding the insurance company stop dragging its feet and pay policyholders in full for tornado damage that happened nearly a year ago. 

The letter, sent last week, describes the series of severe storms as “devastating,” adding that they left seven dead, dozens injured, and many without shelter. 

“Following those devastating storms, I urged you to honor your commitment to your policyholders,” Hawley said. “Yet, my office continues to field complaints from Missourians that State Farm is slow walking the payout of insurance claims, lowballing those claims, refusing to pay for temporary housing for those whose homes are still uninhabitable, and neglecting to pay for debris removal.” 

Hawley notes that just days before the storm, a State Farm executive testified under oath before his subcommittee that the company pays its policyholders “promptly, courteously, and efficiently.” 

“It is disappointing, but not surprising, that these words were an empty promise,” Hawley said. 

During the subcommittee hearing, Hawley grilled Allstate and State Farm executives saying testimony from adjusters and policyholders, along with previous lawsuits, appears to show the companies are “running a racket” and a “pattern of fraud” while making “outrageous profits.”  

The Homeland Security & Governmental Affairs Subcommittee on Disaster Management, District of Columbia, and Census heard from two adjusters who testified that they were pressured to lower estimates.  

Hawley’s letter says that State Farm appears to hold its policyholders in contempt. 

“Missourians find themselves resorting to the costly and time-consuming process of taking you to court for payouts that should have been made many months ago,” Hawley said. “Given your extraordinarily profitable 2025, with net income more than doubling to $12.9 billion, I unfortunately anticipate State Farm will put its financial and legal heft to work in fighting these Missourians in court instead of paying them what they are due.”

Missouri enters tornado season again, Hawley notes. 

“You must do right by the victims of the last tornado season: stop dragging your feet and pay them out in full,” Hawley writes. “As Chair of the Senate Subcommittee on Disaster Management, I will continue to investigate your business practices in Missouri and nationwide and fight to ensure policyholders are made whole. I also welcome the news of a potential federal investigation into your business practices and urge you to cooperate fully with any such investigation.” 

While there are no extensive details that have been publicly made about a potential federal investigation into State Farm, President Donald Trump posted on Truth Social last month that the “government” is looking into insurance company responses to the California wildfires. 

Donald J. Trump Truth Social Post 04:26 PM EST 03.31.26

I have just met with various Political Representatives of the tragedy that took place in California concerning the burning of thousands of once beautiful homes. It was brought to my attention that the Insurance Companies,…

— Commentary Donald J. Trump Posts From Truth Social (@TrumpDailyPosts) March 31, 2026

Trump specifically mentioned State Farm’s response. 

“It was brought to my attention that the Insurance Companies, in particular, State Farm, have been absolutely horrible to people that have been paying them large premiums for years, only to find that when tragedy struck, these horrendous Companies were not there to help,” Trump says. “I have asked the Administrator of the U.S. Environmental Protection Agency, Lee Zeldin, to give me a list of the Companies who acted swiftly, courageously, and bravely in order to make their clients happy and, even more importantly, in order to fulfill their Legal obligations.”

He adds that another list will be made of those companies that are particularly bad. 

“The names of some surprise me, but in the World in which we live, nothing really surprises me!” Trump writes. “State Farm, and others, should get their act together, and treat people fairly.”

Hawley asks State Farm to answer multiple questions, no later than May 14, in his letter:

• • “How many insurance claims, brought by property owners in the wake of the May 2025 storms in Missouri, has State Farm closed without payment?
  • “On what grounds did State Farm deny these claims? Please provide a detailed breakdown.
  • “How many insurance claims brought by Missouri property owners following the May 2025 storms have not received final adjudication by State Farm?
  • “What is your average response time to Missourians who have submitted insurance claims related to the May 2025 storms?
  • “What is your average time from receipt of an insurance claim to the payout of that claim for claims submitted following the May 2025 storms that were closed with payment?”

State Farm has also received criticism for its auto insurance claims handling in recent months. 

A recent P&C Specialist article explores a change in State Farm auto claim practices, which includes cutting labor rates and the use of centralized auto claim audit teams.  

“The Bloomington, Illinois-based insurer has lowered labor rates by as much 20% in the past eight months, depending on the location of the repair shop,” the article says. “It is also increasingly leveraging its audit team to review estimates written by its own staff adjusters and has modified policy language related to reimbursements for labor, sources said.”  

In July, John Parese, a partner with Buckley, Wynne and Parese, addressed this issue in a letter to Attorney General Pamela Bondi to discuss insurance practices that harm consumers and the collision industry. The letter addressed the Senate Homeland Security and Governmental Affairs hearing.

“The unlawful practices exposed during that proceeding are virtually the same as those that occur every day with countless auto body repair claims,” the letter says. “Nearly every state auto body trade association has long advocated for greater consumer protections and for the protection of unlawful insurer practices.”

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