California
California home insurers that denied the most claims
The wildfires that have ravaged Southern California over the past week have wiped out entire neighborhoods, destroying and damaging thousands of homes in Los Angeles County. If analysts’ estimates of the damages prove correct, it could be the largest wildfire insured loss in United States history.
As insurance companies operating in the area expect a barrage of damage claims in the coming days and weeks, Newsweek looked at insurers that previously declined the most claims.
Why It Matters
The California Department of Forestry and Fire Protection, or Cal Fire, estimates that the Palisades fire, which was 19 percent contained on Wednesday morning, has destroyed 2,191 structures and damaged 397 more since it started on January 7. The Eaton fire, which was 45 percent contained as of Wednesday morning, is estimated to have destroyed 4,627 structures and damaged 486 others.
Experts expect the losses linked to the fires to be enormous. According to the latest estimates by forecaster AccuWeather, the total damage and economic loss caused by the fires could reach between $250 billion and $275 billion. That put the fires on track to be among the costliest natural disasters in U.S. history.
Many homeowners who lost their homes to the fires will count on their insurers to help them rebuild. A claim rejection might ruin their chance to get back on their feet after tragedy struck.
DAVID PASHAEE/Middle East Images/AFP via Getty Images
What To Know
Newsweek has looked at how many damage claims the biggest insurers in California for market share closed without payment nationwide in 2023, using the latest data made available by Weiss Ratings.
Los Angeles-based Farmers Insurance had the highest rate of closures with no payment at the national level of all insurers operating in California. The insurer, which according to the California Department of Insurance (CDI) had a 14.9 percent market share in the Golden State in 2023, closed a total of 257,189 claims across the country with no payment that same year—equal to 49.7 of all claims closed in 2023.
Two USAA affiliates had the second-highest rate of claim denials. USAA General Indemnity Co denied 48 percent of all claims closed in 2023 across the country, for a total of 273,994 claims closed without payment; USAA Casualty Ins Co closed 428,116 claims with no payment, also equal to 48 percent of all claims closed that same year.
Newsweek reached out to USAA for comment via email on Wednesday.
Allstate Insurance closed 893,407 claims with no payment in 2023 at the national level, equal to 46.4 percent of all claims the company closed that year.
In 2023, Allstate was the sixth-largest insurer in California, with a 6 percent market share in the state; USAA followed with 5.7 percent.
State Farm General, the largest insurer in California in 2023 with a market share of 21.22 percent, denied 37.8 percent of all claims closed that same year nationwide without payment, for a total of 29,624.
Farmers, USAA and Allstate all sell more policies out of state than State Farm.
Still, these companies’ denial rates were much higher than the national average. By comparison, home insurers across the country denied an average of 37 percent of claims in 2023, according to Weiss Ratings. Weiss Ratings is an independent rating agency founded in 1971.
What People Are Saying
Weiss Ratings founder Martin D. Weiss said in September 2024, when the 2023 report was released: “There’s nothing normal about these high denial rates. They’ve been creeping up steadily for nearly two decades and have now reached alarming levels, especially among some of the biggest providers in disaster-prone states like Florida and California.
“The public can’t even begin to cope with the property insurance crisis until both the industry and their regulators provide full transparency, a change in standard operating procedure that may not be possible without strong ‘Truth in Insurance’ legislation.”
A spokesperson for State Farm told Newsweek last week: “Our number one priority right now is the safety of our customers, agents and employees impacted by the fires and assisting our customers in the midst of this tragedy.”
A spokesperson for Farmers told Newsweek last week: “We are currently focused on assisting customers who are impacted by the devastating fires and strong winds affecting Southern California. Our specially trained Farmers Catastrophe Response Team members have already begun to provide assistance to customers and we are urging local residents to remain vigilant.”
A spokesperson for Allstate told Newsweek last week: “Right now, we’re focused on helping our customers recover and rebuild their lives. We’re supporting customers who have filed claims and have teams ready to move into California once it’s safe to help on site. Allstate policyholders affected by the wildfires can file their claim through the Allstate® Mobile app, online, by calling 1-800-54-STORM, or their local agent. We’re here for our customers.”
What’s Next
The scope of the damages caused by the fires is yet to be defined and will depend on when firefighters will manage to contain and extinguish the flames. Dangerous winds kept Southern California at risk on Wednesday, though firefighters have made progress against the blazes.
According to the National Weather Service in Los Angeles, winds will calm down later this week.
A California man was arrested on suspicion of committing lewd acts and exploiting minors through online platforms.
The Santa Barbara County Sheriff’s Office identified the suspect as Edward “Eddie” Alessandro Zarate, 20, of Santa Maria.
On May 28, authorities began investigating Zarate over allegations that he was communicating with underage girls online and exchanging sexually explicit material with them.
Detectives later learned that Zarate allegedly communicated with minor victims through mobile phone apps such as Whipd, Purp, Wizz and Snapchat, along with exchanging text messages.
Zarate’s profiles appeared to portray him as a juvenile.
“Once he established communication with minors, he would often encourage them to move conversations off the platform and continue communicating via text message,” the sheriff’s department said. “During these conversations, Zarate would disclose his true age and identity.”
So far, authorities are aware of two female juveniles who have met with Zarate in person and reportedly engaged in lewd acts.
He is accused of communicating with minors in multiple states including California, Florida and Illinois. In California alone, detectives believe Zarate contacted minors from Los Angeles, Oxnard, Santa Barbara, San Diego, Santa Maria, Lompoc, Paso Robles, Nipomo, Arroyo Grande and San Francisco.
“Based on the scope of the investigation, detectives believe there may be additional survivors who have not yet been identified,” authorities said.
On June 10, Zarate was arrested and booked on multiple felony charges including oral copulation with a person under 18 years of age, unlawful sexual intercourse with a minor, sending harmful matter to a minor, and two counts of possession of obscene material depicting a minor.
Anyone who may be a victim, has communicated with Zarate online or through text or has information on the case is asked to call Sheriff’s Detectives at 805-681-4150. Anonymous tips can be provided to the SBSD’s tipline at 805-681-4171 or online at SBSheriff.org.
Top universities reject Trump’s ‘compact’ over academic freedom
Massachusetts Institute of Technology, Brown University, University of Pennsylvania, and University of Southern California rejected Trump’s “compact.”
To the surprise of perhaps no Californians, several California universities appeared in the top rankings of the world’s best universities in the latest U.S. News and World Report rankings released on June 16.
Of the more than 2,250 worldwide research institutions that U.S. News & World Report evaluated for this list, six California universities ranked in the top 50 globally, with an even split among Northern and Southern California institutions.
The 2026 list includes universities from more than 100 countries, with the following countries receiving the most schools in the overall rankings:
- China: 409
- United States: 275
- India: 123
- United Kingdom: 93
- Japan: 86
Did your California alma mater appear among the top global universities?
U.S. News and World Report methodology
When determining a university’s placement on the list, U.S. News & World Report considered factors more relevant to research-oriented institutions than to undergraduate-focused metrics like bachelor’s degree graduation rates.
It focused on aspects like academic institutions’ research and reputation, number of publications, the quality of publications and citations. It considers other factors, including location, campus culture, the strength of particular programs, and cost, which are also very important.
“For students seeking universities with strong academic excellence and global recognition, the Best Global Universities rankings offer an essential comparative resource,” said LaMont Jones, Ed.D., managing editor for Education at U.S. News.
“Our methodology focuses on a school’s research mission and scholarly impact, helping students identify institutions that are truly at the forefront of global knowledge creation.”
Out of the top 10 global universities, two California institutions made the list:
- Harvard University
- Massachusetts Institute of Technology (MIT)
- Stanford University
- University of Oxford
- University of Cambridge
- Tsinghua University
- University of California Berkeley
- Yale University
- University College London
- Columbia University
How did California colleges rank in U.S. News and World Report’s Best Global Universities 2026 list?
Outside of the top 10 universities, California saw a handful of other institutions rank highly on U.S. News & World Report list.
Notably, the University of California – Los Angeles just missed the top 10 list, ultimately ranking as the 11th-best global university and the second-best public institution on the list. It was beaten out as the best public institution by its academic counterpart, the University of California, Berkeley, which was ranked the 7th-best global university.
Additionally, a number of University of California schools made the top of the list, ultimately reaffirming the quality of the institutions’ public campuses across the state.
“Research from the University of California is vital to work that benefits all Americans, from breakthroughs in the treatment of Parkinson’s to the science behind previously unimagined successes in fighting cancer and the development of quantum computers that will enable the critical advances of the 21st century,” the University of California said in a press release about its rankings.
Here’s the list of California universities that made the top 100 list:
- 3. Stanford University
- 7. University of California Berkeley
- 11. University of California – Los Angeles
- 22. University of California – San Francisco
- 23. (Tied) California Institute of Technology
- 23. (Tied) University of California – San Diego
- 74. University of Southern California
- 95. University of California – Davis
- 99. University of California – Irvine
- 100. University of California – Santa Barbara
Noe Padilla is a Northern California Reporter for USA Today. Contact him at npadilla@usatodayco.com, follow him on X @1NoePadilla or on Bluesky @noepadilla.bsky.social. Sign up for the TODAY Californian newsletter or follow us on Facebook at TODAY Californian.
The most significant seismic event in California’s history – an earthquake of 7.9 magnitude – occurred in 1857 and ruptured about 225 miles on the San Andreas Fault. That earthquake, dubbed the last “Big One,” killed two people and produced shaking that lasted between one and three minutes.
Since then, California has exploded in population and been has been rattled by many major earthquakes. But Californians have also grown familiar with the existential dread of another “Big One” looming.
Researchers have long warned there will be another massive earthquake in Southern California. They just don’t know when.
A recent study says warning signs continue to grow in 2026. The San Andreas and San Jacinto fault systems have reached the highest stress levels seen in the past 1,000 years, according to a study conducted at the University of Hawaiʻi at Mānoa.
The San Andreas fault runs throughout the state, passing through San Francisco and San Bernardino, while the San Jacinto fault is in Southern California and runs through Riverside, San Diego and Imperial Counties.
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Why the San Andreas Fault is so risky
Faults rupture on the San Andreas Fault approximately every 150 years, according to UCLA professor Jonathan Stewart, who studies earthquake engineering.
But it’s been over 300 years since the last “large rupture” occurred south of the 1857 Fort Tejon earthquake, Stewart said. “As far we know it didn’t produce a large rupture since around 1690. To the present that’s a lot more than 150 years, so there’s a lot of build-up. That doesn’t mean it’s going to happen immediately, it just means there is more stress built-up.”
When the earthquake happens, it is likely to cause a lot of damage. One major concern is the state’s water systems.
“An earthquake like this would rupture most, if not all of the major aqueducts bringing water into Southern California,” Stewart said. “Most people will not be in a collapsed structure after this earthquake, but everybody’s going to be affected by water problems.”
Study highlights longstanding risk
To investigate the probability of an earthquake occurring, researchers built a physics-based simulation and fed it the earthquake history from the region. By doing so, they were able to estimate how much stress has built up along the southern San Andreas and San Jacinto fault systems.
The results suggest that catastrophe may be near.
“Right now, with stress at historically high levels across the region and more than 160 years elapsed since the last major rupture, the system is in a critically loaded state,” lead author Liliane Burkhard said.
Most importantly, the Cajon Pass, at the junction of the San Andreas and San Jacinto faults, could facilitate a joint rupture of the two faults. This scenario, according to the study, would probably be “significantly more damaging” than a single-fault event.
How is earthquake safety considered?
Seismic hazard assessments are critical for the safety of the millions of residents in California’s densely-populated and earthquake-prone areas.
Seismic Hazard maps show the relative hazard associated with earthquakes using information on past faults, the behavior of seismic waves and the near-surface conditions of specific locations, according to the U.S. Geological Survey.
Larger values indicate a stronger level of earthquake shaking. A peak ground velocity of 269 cm/sec would correspond to extreme shaking and heavy damage. For reference, the largest ground velocity recorded in Taiwan’s 1999 Chi-Chi earthquake reached 318 cm/sec and had a magnitude of 6.7.
That earthquake killed more than 2,000 people and incurred approximately $14 billion in damage.
How do the fault lines rupture?
The San Andreas and San Jacinto faults are strike-slip faults, which typically cause horizontal displacement. Both faults comprise the geologic boundary between the Pacific Plate and the North American Plate.
If a major earthquake occurs on the San Andreas fault, it is likely to produce surface rupture, which occurs when a fault breaks through to the surface. Most earthquakes, however, do not produce surface rupture, according to USGS.
In a major rupture, strong shaking could cause severe damage near the fault and in areas built on soft or water-saturated soils, which can amplify shaking. Rupture can directly offset roads, buildings, and other structures that span the fault trace.
Although the study helps explain the risk associated with the California fault lines, Burkhard emphasized that it shouldn’t serve as a forecast.
“This is not a prediction of when an earthquake will happen,” Burkhard said. “However, studies like this are important contributions to national and global earthquake hazard research in that we are using rigorous, quantitative science to better understand the risk facing millions of people.”
Contributing: Brandi D. Addison, USA TODAY NETWORK
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