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.
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.
California
LA fires live: risk of ‘rapid fire spread’ as near hurricane-force winds forecast in some areas
Key events
Raphael Boyd
The celebrated hip-hop producer Madlib has confirmed the loss of his extensive record collection and much of his recording equipment along with his home in the wildfires that have swept across California and killed at least 25 people.
The influential musician, who has worked with some of the most prominent names in rap including Kanye West, Kendrick Lamar, Snoop Dogg and MF DOOM, is known for his sample-heavy production style. His record collection, amassed over 30 years, acted as the backbone of that work.
The collection is understood to have comprised thousands of rare vinyls, CDs and cassettes encompassing many musical genres, and included records he collected on his global travels. As well as creating and producing hip-hop, Madlib worked on experimental music including the Sound Ancestors collaboration with the electronic musician Four Tet, and founded the Madlib Invazion label.
Some of his most frequent collaborators were creators of alternative hip-hop including Erykah Badu, Talib Kweli and J Dilla, and his work often included elements of world music and jazz. His best known collaborator is probably the late MF DOOM, with whom he used his archive and equipment to produce the critically acclaimed album Madvillainy in his LA studio.
News of the loss was met with consternation by fans online, while an online fundraiser, shared by fellow artists such as Flying Lotus and Freddie Gibbs, has been set up for Madlib – whose birth name is Otis Lee Jackson Jr – and his family.
On Tuesday afternoon, officials said at least 25 people had died from the southern California fires. But the death toll is likely to rise, according to Los Angeles county sheriff, Robert Luna.
Nearly 30 people were still missing, Luna said on Tuesday. Some people reported as missing earlier have been found.
According to the Associated Press, just under 90,000 people in the county remained under evacuation orders, half the number from last week.
Here are some of the latest images that have come in on the newswires:
LA police announced about 50 arrests, for looting, flying drones in fire zones, violating curfew and other crimes
Millions of southern Californians were on edge as a final round of dangerous fire weather was forecast for the region on Wednesday, reports the Associated Press (AP).
Police announced roughly 50 arrests, for looting, flying drones in fire zones, violating curfew and other crimes.
Of those, three people were arrested on suspicion of arson after being seen setting small fires that were immediately extinguished, LA police chief Jim McDonnell said. One was using a barbecue lighter, another ignited brush and a third tried to light a trash can, he said. All were far outside the disaster zones. Authorities have not determined a cause for any of the major fires.
Among nine people charged with looting was a group that stole an Emmy award from an evacuated house, Los Angeles county district attorney, Nathan Hochman, said.
The biggest worry remained the threat from intense winds. Now backed by firefighters from other states, Canada and Mexico, crews were deployed to attack flareups or new blazes. The firefighting force was much bigger than a week ago, when the first wave of fires began destroying thousands of homes in what could become the nation’s costliest fire disaster.
Kaylin Johnson and her family told the AP that they planned to spend the night at their home, one of the few left standing in Altadena, near Pasadena. They intended to keep watch to ward off looting and to hose down the house and her neighbors’ properties to prevent flareups.
“Our lives have been put on hold indefinitely,” Johnson said via text message to the AP, adding that they cannot freely come and go because of restrictions on entering the burn areas. “But I would rather be here and not leave than to not be allowed back at all.”
‘A crisis that impacts the nation’: LA mayor talks up recovery of city
Los Angeles mayor, Karen Bass, has cautioned residents that the emergency isn’t over yet, but she wants them to start thinking about recovery and rebuilding if possible.
“While we’re going through what I hope is the final hours of this emergency, it’s also time to begin to talk about our recovery,” she said.
You can listen to her comments in this video:
Opening summary
Hello. It is just past 8.30am in London and 00.30am in Los Angeles. This is the Guardian’s latest live blog with coverage of the wildfires in southern California.
Forecasters have warned of another “particularly dangerous weather situation” across northern Los Angeles where residents are braced for new wildfire evacuation orders.
Los Angeles, and parts of Ventura county to the north, faced “extreme fire risk” warnings through Wednesday, with officials warning of “significant risk of rapid fire spread” due to the Santa Ana winds – which have gusts of up to 75mph.
The “particularly dangerous weather situation” designation is used very rarely, and was designed by meteorologists to signal “the extreme of the extremes”. The winds were predicted to reach near hurricane-force in some areas.
This is the fourth time in recent months that Los Angeles has faced a “particularly dangerous weather situation”, and the three previous warnings all resulted in major wildfires, the Los Angeles Times reported.
“I don’t want people to start thinking everything’s OK now. Everything’s not OK yet,” the Los Angeles county sheriff, Robert Luna, said in a Tuesday morning press conference. “It is still very dangerous for the next 24 hours.”
Meanwhile, the official death toll from last week’s fires in Altadena and the Pacific Palisades is expected to rise.
Here is the latest on the evolving situation in southern California:
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As of Tuesday morning, 84,800 people had been warned they might be ordered to evacuate because of fire risk, while another 88,000 people remained under current evacuation orders.
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On Tuesday afternoon, officials said at least 25 people had died from the fires, but this number is expected to rise. At least two dozen people have been reported missing, 18 of them in the Eaton fire in north-east Los Angeles, and six around the Pacific Palisades.
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More than 12,000 structures had been destroyed. Estimates put the cost of damage at about $250bn, which could make it the costliest fire in American history.
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Los Angeles mayor, Karen Bass, and other officials – who have faced criticism over their initial response to the fires – expressed confidence that the region was ready to face the new threat with scores of additional firefighters brought in from around the US, as well as from Canada and Mexico. At a press conference, Bass described the level of destruction across parts of the city as the aftermath of a “dry hurricane”, and pledged that city officials would work hard to reduce the bureaucracy residents may face as they start to recover from the fires.
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More than 75,000 households, most of them in Los Angeles county, were without power on Tuesday morning, but Southern California Edison had warned nearly half a million customers on Monday that their power may be shut off temporarily because of the expected high winds on Tuesday and Wednesday.
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As of midday on Tuesday:
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The Palisades fire, at 23,700 acres and 17% containment.
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The Eaton fire, at 14,100 acres and 35% containment.
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The Hurst fire, at nearly 800 acres and 97% containment.
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The new Auto fire, which broke out on Monday night in Ventura, is now fully contained, and no evacuation orders remain in effect.
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California
California ex-prison guard found guilty of 64 charges of sexual abuse of women
Gregory Rodriguez, a former California women’s prison correctional officer, who was at the center of one of the state’s largest prison abuse scandals, was convicted of 64 sexual abuse charges on Tuesday.
The jury’s guilty verdict includes convictions for rape and sexual battery on behalf of 13 incarcerated women.
Rodriguez, 56, was facing 97 counts and was found not guilty on some while the jury was hung on others, the Fresno Bee reported. His convictions include 57 felonies and seven misdemeanors, prosecutors said.
Rodriguez is one of the few California prison guards to face criminal charges for on-duty sexual misconduct, which data suggests is rampant in the state’s women’s prisons and across the US, but infrequently punished.
The scandal exposed how difficult it is for survivors of officer sexual assaults to come forward behind bars and how the system shields abusive guards from accountability.
Authorities first disclosed in December 2022 that Rodriguez was suspected of sexually abusing at least 22 people incarcerated at the Central California Women’s Facility, the state’s largest women’s prison, located in Chowchilla in the Central valley. Rodriguez, who had worked in the state prisons since 1995, retired in August 2022 after he was approached by investigators, the California department of corrections and rehabilitation (CDCR) said at the time.
In May 2023, the Madera county district attorney’s office charged Rodriguez with nearly 100 counts of sexual abuse on behalf of 13 women. Investigation records and accounts from survivors suggested a pattern – that Rodriguez would first verbally harass women, making sexually explicit remarks, then summon them to isolated areas without cameras, falsely claiming they had appointments or were needed for prison labor. He allegedly offered them items such as tobacco or gum in exchange for sex and threatened to discipline them if they did not comply or they reported him.
A Guardian investigation revealed in 2023 that the prison had received a report of Rodriguez’s abuse in 2014, but instead of firing him, punished the victim. That woman said she was sent to solitary confinement as the prison conducted its sexual misconduct investigation. She was eventually sent to another prison.
In an interview last year, she said the experience severely affected her mental health and that she was left isolated without support. She said: “I just felt trapped because I couldn’t talk to anybody … I really internalized that anger towards myself.”
After the 2014 investigation, Rodriguez went on to commit dozens of acts of sexual violence, prosecutors said.
Roger Wilson, Rodriguez’s lawyer, said in an email that he and his client were “disappointed” with the outcome of the trial: “The jury had a monumental task of wading through weeks of testimony and exhibits to reach decisions on 97 counts … The jury clearly believed some inmates and disbelieved others.” He said he couldn’t comment further while the jury continued to deliberate on issues related to sentencing.
Terri Hardy, a CDCR spokesperson, said in a statement that the verdict “reaffirms” its own investigation into Rodriguez, which it sent to prosecutors in 2022: “The department resolutely condemns any staff member – especially a peace officer who is entrusted to enforce the law – who violates their oath and shatters public trust,” she said.
Records showed that women incarcerated in California’s state prisons filed hundreds of complaints of sexual abuse by staff from 2014 to 2023, but only four officers were terminated for sexual misconduct during that timeframe.
The California Coalition for Women Prisoners, a group that supported victims during the trial, shared a statement from one imprisoned survivor in its press release: “This is not a one officer problem. From my experience, Rodriguez is one bad apple on a tree that’s rotten to its core,” the woman said.
“I had to tell my story in detail while facing my abuser. It was awful and humiliating. His attorney tried to paint us as liars, despite all kinds of evidence against him,” another survivor said.
The coalition lamented that women had been forced to testify in chains. “While we recognize this step in holding Gregory Rodriguez individually accountable, we call for systemic change in CDCR policies and practices that will help ensure that abuse in the women’s prisons does not continue,” advocates said in a statement.
Last year, California lawmakers adopted legislation meant to support outside investigations into claims of sexual misconduct filed by incarcerated people. In September, the US Department of Justice also opened a civil rights investigation into sexual abuse at the state’s women’s prisons, though the fate of that inquiry is unclear as Donald Trump resumes office.
California
What Blue States Can Do If Trump and Republicans Withhold Disaster Aid
As fires continue to devastate Los Angeles County, a president will soon be inaugurated who has promised to withhold federal help from states like California if Democratic lawmakers there don’t sing to his tune. Donald Trump threatened to withhold federal disaster relief from the state just months ago, and he recently repeated that threat.
There’s plenty of reason to believe Trump means it, too, considering he reportedly delayed or withheld disaster aid to blue states and Puerto Rico during his first term as president.
Republican lawmakers like Rep. Warren Davidson (R-Ohio) have also raised the idea in light of the California wildfires, while House Speaker Mike Johnson (R-La.) said on Monday that he believes federal aid should be conditional. “It appears to us that state and local leaders were derelict in their duty in many respects. So that’s something that has to be factored in,” Johnson said, echoing the larger right-wing response to the fires, which has been to blame Democrats.
Sen. Tommy Tuberville (R-Ala.) chimed in later on Monday. “They don’t deserve anything, to be honest with you,” he said of the prospect of outside aid coming into California, citing “inner-city woke policies.”
The wildfires in California have burned roughly 40,000 acres of land — or about 62 square miles — which is nearly three times the size of Manhattan. The Santa Ana winds are expected to pick up and increase the risk of fires spreading further. If Trump were to deny a state like California federal aid during such a disaster, the consequences could be enormous.
“It would be unprecedented. The longstanding protocol among presidential administrations has been to leave any kind of electoral politics behind when it comes to any disaster declarations,” says Jesse Keenan, an associate professor and director of the Center on Climate Change and Urbanism at Tulane University. “The impacts would be devastating.”
In response to the Los Angeles fires, President Joe Biden on Jan. 8 approved a Major Disaster declaration that directed government funds to support the region’s recovery and help pay for the cost of fighting the fires. The administration also deployed large air tankers and federal firefighting helicopters operated by the U.S. Forest Service to help fight the fires.
“There are different faces to federal involvement in disasters,” says Daniel Farber, a law professor at the University of California, Berkeley. “There’s somebody that’s available beforehand to try to reduce risks of various kinds, there’s the immediate disaster response where you see the guys with the FEMA jackets on the ground, and then there’s this longer term rebuilding process, which can take years, and there’s federal aid for reconstruction.”
Beyond helping deal with the disaster initially, the most significant role of the federal government is to help the affected region recover. Keenan says that means helping to pay for debris removal and the repair of critical infrastructure. When necessary, it may also pay to upgrade infrastructure to help prepare for future threats.
“These are very large upfront costs,” Keenan says. “The federal government, when they deploy this money for debris removal and for individual assistance and all of that money that floods in after a disaster, it really does a lot to stabilize the local economy. Without it — if you remove those federal dollars — you see a real delay in the return of what we call normal, stabilized economic outputs.”
Without that money, Keenan says, it would take these communities a lot longer to recover from a disaster. That might mean another disaster could strike while the recovery from the last one is still ongoing. Federal resources allow a community to recover as quickly as possible and hopefully prepare for the next disaster before it happens.
“You could see damage to the community for years or decades if the federal government sort of boycotted the disaster relief,” Farber adds.
Knowing that the Trump administration may be considering withholding federal aid from blue states in the future, governors and other leaders in these states may want to consider how to prepare for such an occasion. There are some things these lawmakers could do if help is denied, but they will never fully replace the impact of the federal government intervening.
“There is a compact between the states to help each other called EMAC,” Farber says. “That’s been used quite a number of times. That’s a possibility, to make preparations and think about what other states you might want to call on and what you would ask them to do.”
Keenan says he might recommend that blue states start to get financially prepared for disasters in ways they haven’t necessarily needed to in the past. That could involve putting money aside for future disasters and creating lines of credit for municipalities that could be affected.
“I would try to create budget line items where I start putting money away — where I have contingency funds, as well as opening pools for lines of credit for local governments,” Keenan says. “It’s not just the cash. It’s also creating credit facilities, which may mean lending pools, that local governments could borrow against for short-term credit needs.”
Farber says that if the federal government decides to deny aid for purely political reasons, states may want to be prepared to sue the government and see how that plays out in the courts.
“If the president just said ‘no’ without an explanation, then it would be really hard to sue,” Farber says. “If the president said it was because you voted against him, then there’s a chance of it succeeding in court.”
The federal government is typically expected to step in and help a community when it faces a natural disaster, the idea being that we’re all in this together, and we should help each other in times of need, regardless of political affiliation. The Biden administration sent federal help to red states that had been ravaged by hurricanes last year, even while Trump tried to claim he was withholding it for political reasons.
“In moments like this, it’s time to put politics aside,” Biden said during a visit to Georgia following Hurricane Helene. “It’s not one state versus another — it’s the United States.”
It’s clear Trump doesn’t see it that way. The president-elect is transactional, and he is spiteful, so states may not be able to consistently rely on federal help going forward. However, Trump may find himself in a political bind if he starts threatening to withhold aid due to how the electoral map looks in this country.
“Disproportionately in this country, disaster declarations are made in red counties,” Keenan says. “You can pick on Nevada or California or Virginia or wherever, but it’s not going to be so easy politically,” he adds, noting that Trump could wind up hurting his own supporters by using disaster relief to carry out his political vendettas.
Perhaps, for this reason, he may be hesitant to do so. That being said, Trump has not always been known to let logic get in the way of his actions.
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