California
California's insurance crisis resulting in canceled policies, increased rates. Here's what to know
LOS ANGELES (KABC) — Amid an ongoing insurance crisis in California, many customers are being dropped by their insurance companies.
And among those who can get insured, including homeowners and drivers, the coverage is likely to cost more.
“I contacted nine insurance companies and none of them wanted to take us. None of them,” says customer Steve Besbeck.
Besbeck says after 15 years his former insurance company dropped him. So he had to go with the California FAIR plan for fire coverage. The FAIR plan is for California homeowners unable to find insurance in the traditional marketplace.
Besbeck still had to get a separate policy for other home risks. “And the premium increased about 30% year over year with FAIR plan so it’s been very expensive,” he said.
Insurance policy costs have gone up steadily every year, from just over $1,000 in 2015 to almost $1,500 in 2021.
“I think the home insurance industry is abandoning Californians who have diligently paid their premiums for decades,” said Carmen Balber with Consumer Watchdog, an advocacy group.
More and more Californians are finding it difficult, or even impossible, to keep their homes insured amid skyrocketing rates and policies being canceled by insurance companies.
According to insurance agent Rick Dinger, finding polices for his clients is nearly impossible.
“Ninety percent of our job is talking people off the ledge and explaining to them that it’s not them, everyone is going through the same situation right now,” said Dinger. “It’s very few, and the rest we say ‘I’m sorry we can’t help you.’ Or the rates are so outrageous they get upset and don’t call back.”
Experts say there are things you can do so your insurer is less likely to drop you. One thing is to make sure you have enough coverage to rebuild.
“Sometimes construction costs are not equal to fair market value. They are higher and so it really just depends, but you do want to pay special attention to what those costs are going to be and make sure that your insurance coverage matches that,” said Omar Ochoa, an attorney and Insurance expert.
Higher insurance costs are not just hitting customers with big increases in homeowners polices, but also with auto policies. Besbeck says he’s been struggling with both. When it comes to car insurance, he’s driving less but paying more.
“I drove less than 4,000 miles last year on each of our cars. We have two cars and insurance went up this year like 20%, something like that, for nothing,” said Besbeck.
California regulates insurance companies and their rate increases, so a number of insurance companies have simply pulled out of the state.
It’s one reason it’s getting harder to find a policy. Allstate stopped issuing new policies in California last year. The company decided to return but only after regulators agreed to let it raise rates by an average of 30%.
“Just to be clear, that Allstate increase, that 30% increase, was an auto insurance increase, not a home increase. But we’re absolutely seeing insurance companies holding California hostage for deregulation that they’re trying to get out of the Department of Insurance,” Balber said.
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California
California Highway Patrol work to keep drivers safe during holiday weekend enforcement
BAKERSFIELD, Calif. (KBAK/KBFX) — The California Highway Patrol is urging drivers to stay focused on the road as they head out for Fourth of July celebrations.
The holiday weekend can be a dangerous time on our roads as millions of drivers are expected to travel.
CHP Officer Jorge Toro joined Eyewitness News Mornings to share how drivers can stay safe behind the wheel.
Officer Toro also highlighted the importance of sober driving over the holiday.
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He says anyone hosting a party should make sure all of their guests get home safely, ensuring anyone who may be impaired doesn’t drive.
California
California returns stretch of coast to Indigenous tribes. ‘This is beyond huge’
California is returning a stretch of rugged Mendocino County coast to the Indigenous nations whose ancestors once stewarded its shores.
State transportation officials recently approved the transfer of Blues Beach and the surrounding bluffs to Kai Poma, a nonprofit founded by representatives of the Sherwood Valley Band of Pomo Indians, Round Valley Indian Tribes and Coyote Valley Band of Pomo Indians.
The transfer of 136 acres just south of the community of Westport will mark the first time land managed by the California Department of Transportation has been returned to Indigenous tribes.
“This is beyond huge,” said J. Carlos Rivera, tribal chairman of the Sherwood Valley Band of Pomo Indians. “It’s enormous from our tribal perspective that we are basically obtaining the land that our people once lived on before colonization.”
California purchased the swath of rocky cliffs and windswept shoreline in the 1960s to expand the construction of Highway 1 and create a scenic viewpoint for highway travelers, according to a California Coastal Commission report.
More recently, public access has been largely unregulated, and summer weekends and holidays have drawn large groups who camp and party on the beach, at times driving through sensitive areas, damaging cultural sites and leaving behind trash, the report states.
Kai Poma plans to conduct cultural and archaeological resource studies and environmental surveys and then prepare a resource management plan for the property, according to planning documents. The nonprofit and the Coastal Commission have drafted a public access management plan that states the land will be open from sunrise to sunset.
Rivera described the entire property as a sacred site. The coastal waters are used by tribal people for seaweed and abalone gathering, and the shores host youth cultural camps, he said. “Protecting the land, it has a deeper meaning for us because we’re connected to the land,” he said.
The effort to acquire the land took years — and required a change in state law. Caltrans lacked the ability to transfer land to tribal governments until 2021, when Gov. Gavin Newsom signed a bill sponsored by state Sen. Mike McGuire (D-Healdsburg) that enabled the transfer, according to a news release issued at the time. The law also bars commercial activity on the property and requires public access be maintained.
“With 136 acres now officially transferred into tribal stewardship, one of the most spectacular stretches of the Mendocino Coast will be forever protected,” McGuire said in a statement.
“This agreement, the first of its kind in California, gives these three dynamic Native American tribes the rightful opportunity to reclaim sacred lands and cultural traditions on this special piece of earth. And it’s about damn time.”
The land transfer cleared its last regulatory hurdle June 26 with the approval by the California Transportation Commission, said Neil Thapar, an attorney who works as an advisor and legal consultant to Kai Poma. Caltrans staff will next record the deed transferring the title from the state of California to Kai Poma, which is expected to happen any day, he said.
California
What’s open, closed for Independence Day weekend in California?
Fireworks Safety Guide
Essential safety tips for buying, handling, and watching fireworks to ensure a safe celebration.
With July 4 falling on a Saturday this year, many businesses and organizations are taking the day off Friday, July 3, to mark America’s 250th birthday. From banking to mail service, here’s what’s open and closed for the holiday weekend.
Most federal offices closed, mail service to continue
Non-essential federal offices will be closed on July 3. However, mail service will continue as normal, and post offices are scheduled to remain open.
Most California government offices to remain open
Most California government offices will be open on July 3, with some exceptions.
DMV offices throughout the state will be open. However, the Employment Development Department will be closed.
DMV offices that offer Saturday hours will be closed on July 4.
Private parcel services to remain open
UPS and FedEx are both scheduled to operate normally on July 3, but will suspend service on July 4.
Stock markets closed
Both the New York Stock Exchange and Nasdaq will be closed on July 3.
Most banks to stay open
While most banks were expected to operate normally on July 3, some may operate under modified holiday hours. All banks will be closed on July 4.
Online banking services should remain operational.
Grocery stores
Most major grocery chains will be open on both July 3 and July 4. Trader Joe’s locations will be open for regular business on July 3 but will close early at 5 p.m. on the Fourth of July.
Retailers
Many major retail stores, such as Walmart and Target, plan to operate under normal business hours on both July 3 and 4. All Costco warehouse stores operate under normal business hours on July 3, but will close on July 4.
Restaurants
Most major restaurant chains remain open on July 4, but some will have limited hours. All Raising Cane’s locations will close on July 4.
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