California
Big homeowner rate hike from State Farm shot down by California regulator
In summary
In the wake of the Los Angeles fires, State Farm asked for an “emergency” premium increase of 22% on average for California homeowners. Lara today denied the request pending more information.
California Insurance Commissioner Ricardo Lara today rejected State Farm’s request for “emergency” rate increases, setting up what could be a highly consequential showdown with the state’s biggest insurer — and going against the recommendation of his staff experts.
Lara, who has been urging insurance companies to write policies in the state again despite increasing wildfire risks, says in a letter to State Farm executives that he needs more information before he can approve an increase. He asks them to appear before him in person on Feb. 26 at the Insurance Department’s office in Oakland to answer his questions at an “informal conference.”
“The burden is on State Farm to demonstrate that interim relief is warranted under the circumstances,” the commissioner says in his letter. “My goal is to make sure policyholders do not have to pay more than is required. In light of the recent Los Angeles wildfires, State Farm’s customers need real answers about why they are being asked to pay more and what responsibility the company’s leadership is taking to get its financial house in order.”
“State Farm’s customers need real answers about why they are being asked to pay more and what responsibility the company’s leadership is taking to get its financial house in order.”Ricardo Lara, California Insurance Commissioner, in a letter denying State Farm’s request for “emergency” rate increases on home insurance policies
The company last week asked for interim rate increases averaging 22% for homeowners, 15% for renters and 38% for condominium owners, saying it had already paid out $1 billion in claims from the Los Angeles County fires so far and expected to “pay out significantly more.” It wanted to be able to raise premiums starting in May.
Before making the interim request, State Farm had been waiting for the Insurance Department to approve its rate increase requests from last year.
Lara acknowledged in the letter that his staff recommended last week that he approve the company’s request, but said “my primary responsibility is to the people of California.”
In his letter, among the things Lara asks for are an explanation of what has changed between State Farm’s request last summer and now; what else the company is doing to improve its financial situation besides raising rates; and whether State Farm’s parent company would be able to step in to help. The commissioner also asks how granting the company its request would affect its 2023 decision to continue not writing new policies in California, which was followed by its decision last year not to renew the policies of tens of thousands of customers in the state.
Lara mentions in the letter that with his department’s approval, the company received rate increases of 6.9%, 6.9% and 20% in 2022, 2023 and 2024, respectively. “In the absence of non-wildfire catastrophic losses in 2022 and 2023, how does State Farm explain the significant decrease in its policyholder surplus?” he asks.
Dan Krause, chief executive of State Farm General, the California arm of State Farm Group, said in a letter to Lara dated Feb. 3 that the company has nearly 3 million policies in the state, including 1 million homeowner policies. He asked for the commissioner to bypass the usual hearings, which are required by state law when an insurer requests rate increases above 7% and the increases have been challenged by an intervenor. Krause wrote that “there is simply too much at stake for SFG’s customers and the broader market if any rate increase has to wait on a full hearing or other resolution in the normal course.”
In the insurance department’s recommendation for approving the rate increases sought by State Farm, the staff noted that the proposed agreement would have been subject to refunds promised by the company if the department eventually approves rates lower than the interim rates.
The meeting at which Lara is asking State Farm executives to appear in person will also include Consumer Watchdog, the group that intervened last year when the company filed its rate requests.
Consumer Watchdog last week urged the commissioner to reject State Farm’s request for the interim rate increases. In a press release, the group accused the company of “misleading policyholders into believing its financial condition is at risk.”
The consumer advocacy group had a mixed reaction to the commissioner’s action, saying he needs to follow the law and hold a public rate hearing.
“The Commissioner is right to call for more scrutiny of State Farm, which has so far stonewalled information requests,” said Pam Pressley, an attorney for the group, in a press release today. “However, the outstanding issues need to be raised and answered in a formal hearing, which Consumer Watchdog has called for, where there is formal discovery and due process rights.”
Still, the group plans to attend Lara’s meeting on Feb. 26, Consumer Watchdog President Jamie Court told CalMatters today. “We will take every opportunity we can to make our case even if we disagree with the process,” he said.
State Farm has not responded to a request for comment. When asked to comment last week about its proposed emergency rate increase, a State Farm spokesperson referred to a statement on the company website that said in part that “insurance will cost more for customers in California going forward because the risk is greater in California.”
Property owners in California have struggled with insurance availability and affordability in the past few years as companies have either stopped renewing policies or writing new ones, citing wildfire risk and inflation. Many homeowners have had to turn to the FAIR Plan, a coverage pool, funded by insurance companies operating in California, that’s required by law to provide fire insurance to those who can’t otherwise find it.
This week, Lara approved a $1 billion lifeline sought by the FAIR Plan, which said it risked running out of money to operate as it pays out claims for the Los Angeles-area fires. Its member companies will be responsible for that amount, and are expected to take advantage of their new ability to try to recoup half of that money from their customers by charging them a one-time fee.
Last year, the commissioner rolled out a multi-part effort to address insurance availability in the state. It took effect at the beginning of 2025, right before the L.A.-area fires.
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California
HGTV names 2 Northern California towns amongst best suburbs in the U.S.
Five favorite walkable, bikable cities in America
USA TODAY 10Best readers voted these five cities as the most walkable in the nation. Check out the full list of 10 Most Walkable Cities on 10Best.com.
Scott L. Hall, USA TODAY
A lifestyle television network recently released a list on its website of the hottest suburbs in the city, with two in California
Home and Garden Television, or HGTV as it’s most commonly known, released its list of the 20 hottest suburbs in the country for those hoping to escape city life.
HGTV partnered with Suburban Jungle, a website that advises people move from cities to suburbs, to create the list.
The channel’s website cited entertainment, seasonal festivals and local theater programs as just a few perks to suburban living.
So, what are the best suburbs according to HGTV?
What are the best suburbs in the U.S.?
Among the list of the 20 hottest suburbs around the U.S., two California towns near San Francisco made the cut.
Mill Valley, a small town in Marin County, has an estimated population of about 13,904 as of 2024.
The city is just outside San Francisco and is known for its Mill Valley Film Festival amd live performances at Sweetwater Music Hall or Throckmorton Theater are available to residents.
“Mill Valley has a one-of-a-kind natural environment and access to nature: It borders Muir Woods National Monument, Golden Gate National Recreation Area, Mount Tamalpais State Park and the San Francisco Bay,” said Pam Goldman, head Bay Area strategist for Suburban Jungle to HGTV.
Redwood City was the second California town among the hottest suburbs in the country. It is located in the heart of Silicon Valley and about 27 miles from San Francisco, HGTV says.
The city has an estimated population of 82,982 as of 2024 and several tech companies. Despite the tech presence, the town maintains a close-knit feel and has several year-round community events on Broadway, as well as seasonal events such as Oktoberfest and Music on the Square, the home and garden website said.
“Redwood City has lots of energy and youthful vibes, and it’s also right between San Francisco and San Jose,” Goodman said.
Top 20 hottest suburbs, according to HGTV:
- Chappaqua, New York
- Larchmont, New York
- Summit, New Jersey
- Port Washington, New York
- Greenwich, Connecticut
- Westport, Connecticut
- Glencoe, Illinois
- La Grange, Illinois
- Needham, Massachusetts
- Winchester, Massachusetts
- Lafayette, Colorado
- Littleton, Colorado
- Bethesda, Maryland
- Fairfax, Virginia
- Boca Raton, Florida
- Wesley Chapel, Florida
- Mill Valley, California
- Redwood City, California
- Dunwoody, Georgia
- Milton, Georgia
Ernesto Centeno Araujo covers breaking news for the Ventura County Star. He can be reached at ecentenoaraujo@vcstar.com, 805-437-0224 or @ecentenoaraujo on Instagram and X.
California
Contributor: California law limiting bail is clear. Will judges keep ignoring it?
Gerald Kowalczyk tried to buy a hamburger with credit cards he found on the floor. Then, while presumed innocent, he spent months in a California jail — not because a judge determined he was dangerous, not because he threatened anyone, but because the court set bail at $75,000 for a man who couldn’t afford it, then simply denied bail altogether, in defiance of the law. Last week, the California Supreme Court unanimously said no more. The court held that pretrial liberty is the norm; incarceration before conviction for any crime is the rare, carefully limited exception. If courts choose to condition freedom on a monetary payment it “must” be “an amount that is reasonable.”
For years, California courts ran an unconstitutional shadow detention system. The mechanics were straightforward: Set bail at an amount the defendant cannot pay and the result is the same as ordering detention outright. As the court explained in its Kowalczyk ruling, pretrial detention requires strong evidence of a serious charge and “clear and convincing evidence establishing a substantial likelihood that the defendant’s release would result in great bodily harm to others.” Instead, as Justice Joshua P. Groban explains in concurrence, courts have used money bail to detain poor people accused of nonviolent offenses with “devastating repercussions for their employment, education, housing, access to public benefits, immigration status, and family stability.”
This wasn’t a bug. It was the system.
Last week’s ruling closes that loophole — unambiguously and unanimously. Courts can no longer use unaffordable bail as a backdoor detention order. Where detention isn’t authorized, bail must be set at an attainable amount, based on the defendant’s actual circumstances. The ruling builds directly on the Humphrey precedent from 2021, a California Supreme Court decision that first held wealth-based detention unconstitutional and a case I helped bring.
I know how hard these victories are to win. I also know how easily they can be ignored.
Even after Humphrey was decided, across Santa Clara, San Mateo and Alameda counties, judges asked about a defendant’s financial circumstances exactly once out of nearly 250 observed cases. In more than 95% of hearings, judges cited no legal standard at all when ordering detention. More than 90% of people jailed pretrial were charged with offenses that didn’t even qualify for detention under the California Constitution: shoplifting, driving without a license, vandalism. These findings came from Silicon Valley De-Bug, a community organization whose members spent years watching what happens in arraignment courtrooms.
The system didn’t follow the rules set out in Humphrey. We must ensure the system makes good on the unanimous ruling in Kowalczyk.
Start with public defense. California is one of just two states that contributes no funding to trial-level public defense, leaving the 58 counties with no state standards or oversight. The result is a patchwork of wildly unequal and inadequate representation. Last week’s ruling requires courts to make individualized findings about flight risk, public safety, alternative release conditions and ability to pay — which means defense attorneys must be present at or before arraignment, prepared to make ability-to-pay arguments, demand findings and challenge unaffordable bail on the record. In counties where public defenders carry caseloads of 100 or more, that is not happening. It cannot happen without resources.
Then there is the question of alternatives. The ruling requires judges to consider conditions of release — drug treatment, check-ins, social services referrals, in serious cases ankle monitoring — before resorting to money bail or detention. But these options exist only where counties have invested in pretrial services outside of law enforcement, programs such as San Francisco’s Pretrial Diversion Project. Most haven’t. A constitutional right to alternatives is hollow without alternatives for judges to choose from.
Finally, the Judicial Council, which makes policy for California courts, should establish monitoring standards, reporting requirements and training protocols that ensure courts no longer impose unnecessary or unconstitutional pretrial incarceration.
Kenneth Humphrey spent 250 days in jail for $5 and a bottle of cologne. Gerald Kowalczyk spent months inside for a hamburger. Behind each of them are tens of thousands of Californians who spent similar time behind bars unjustly, who lost jobs and homes and custody of their children, because the system treated their poverty as grounds for imprisonment.
The Supreme Court has now said clearly what our Constitution has since 1849: Pretrial liberty is the norm. Pretrial detention is the carefully limited exception. There is a good reason for the presumption of innocence: 1 in 3 California arrests does not lead to any conviction, and upending people’s lives by jailing them pretrial is so destabilizing it actually increases future crime.
Let’s ensure this presumption of innocence means something in practice if you, or your loved one, need it.
Chesa Boudin is the former district attorney of San Francisco and the executive director of the Criminal Law & Justice Center at UC Berkeley School of Law.
California
29 youths busted with fake IDs at California restaurant
Twenty-nine people were busted with fake IDs inside a sushi restaurant on California’s Central Coast on April 23, according to the San Luis Obispo Police Department.
Undercover agents with the California Department of Alcoholic Beverage Control busted the underage drinkers at HaHa Sushi and Ramen on the 1000 block of Olive Street. Inside the restaurant, agents saw “a large group of youthful-appearing individuals” ordering and drinking alcohol, the San Luis Obispo Police Department said.
“In accordance with state law, agents contacted and identified the members of the group, discovering no one was 21 years old and every person was in possession of a fake identification card,” police said.
During the investigation, 29 people were cited and released for possession of a fake ID. Six of these suspects were arrested for being minors in possession of alcohol. All of the suspects were cited and released from custody at the restaurant.
“Preventing the sale of alcoholic beverages to minors helps increase public safety by reducing DUI arrests and collisions,” the San Luis Obispo Police Department said. “Statistics have shown that young people under the age of 21 have a much higher risk of being involved in a collision than older drivers. About 25% of fatal crashes involve underage drinking, according to the National Highway Traffic Safety Administration.”
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