California
Can new state regulations resolve California's home insurance crisis? | Opinion
There’s no law requiring California property owners to carry insurance, but the vast majority buy it to protect themselves from fire and other perils, or are required to do so by their mortgage lenders.
There’s also no law requiring insurance companies to offer coverage in California, but most would prefer to do so in the nation’s most immense concentration of property needing protection.
For decades, insuring California’s homes, farms and commercial properties was a hum-drum business of willing sellers and willing buyers. However, the former have become less willing as the state experiences an ever-increasing number of wildfires — even during winter months — that devastate homes and businesses in fire-prone areas.
Last Friday, as the latest of those fires was driving people from their homes in the quaint seaside village of Malibu, Ricardo Lara, the state’s elected insurance commissioner, formally unveiled a large chunk of his plan to stem the exodus of insurers from California.
It would allow insurers to use computer modeling of future exposure to set premiums, while requiring them to offer coverage in risky communities roughly in line with their shares of the market. Until now, insurers set rates based on past losses.
“Giving people more choices to protect themselves is how we will solve California’s insurance crisis,” Lara said in a statement as he released details of the modeling plan. “For the first time in history we are requiring insurance companies to expand where people need help the most. With our changing climate we can no longer look to the past. We are being innovative and forward-looking to protect Californians’ access to insurance.”
He also noted that in setting rates, insurers will be required to consider hardening efforts by threatened communities and property owners to reduce potential losses.
Lara claims support from environmental groups, farmers and other stakeholders, in addition to insurers. But he’s drawing sharp criticism from Consumer Watchdog, an organization that has sponsored landmark changes in insurance regulation. The group has also received millions of dollars in fees from intervening in insurance rates cases, and has been a harsh critic of Lara throughout his time in office.
“Full transparency is what keeps insurance rates honest but Commissioner Lara’s rule does away with that protection,” Consumer Watchdog executive director Carmen Balber said in a statement. “The rule will let insurance companies raise rates based on secret algorithms but not expand coverage as promised.”
The new rules take effect in January. Farmers Insurance, California’s second-largest property insurer, has already pledged to expand its coverage in response to Lara’s actions. The American Property Casualty Association, a trade group, also reacted positively.
“California will continue to have a robust regulatory and rate approval process that guarantees that rates reflect the actual cost of covering claims,” the association said.
While the rules unveiled last week are central to Lara’s plans, there are other elements that remain: shoring up the FAIR Plan, California’s last ditch insurer for property owners who cannot obtain coverage elsewhere, speeding up insurance rate case approvals, and allowing insurers to include costs of reinsurance — coverage of their potential losses — in setting rates.
Adoption of Lara’s plans may result in premium increases, but maintaining a viable insurance market is a vital factor in the state’s economy. The inability to buy insurance would devastate the residential and commercial real estate market and require property owners to pay for fire losses out of their own pockets.
Lara’s plans may not be perfect, but nobody — including Consumer Watchdog — has offered a better alternative. He should be credited with at least attempting to deal with one of California’s existential crises.
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California
California’s gubernatorial race heats up as Newsom’s term nears end, with many contenders
FRESNO, Calif. (FOX26) — In just over a year, Gavin Newsom’s term as California’s governor will come to an end, capping off nearly eight years in office.
Now the question is – who will take over once he steps down?
We spoke to political scientist Nathan Monroe about what could be one of Californias most unpredictable gubernatorial races yet.
With Governor Gavin Newsom’s term ending, the race to replace him begins.
This race will determine who leads the worlds fifth largest economy at a time when California is facing issues such as housing and affordability.
Californias next gubernatorial election is shaping up to be crowded – and for the first time in years – there’s no incumbent on the ballot.
“You say, well, just which democrat is going to win, right? Like, sort of republicans don’t have a shot. But what we have to keep in mind, right, is that the rules of elections matter. And in California, we have the top two primary system,” said Nathan Monroe, a Political Science Professor at UC Merced.
More than a dozen candidates are vying for the spot.
On the democratic side, contenders include former U.S. Secretary of Health and Human Services Xavier barrera, former U.S. Representative Katie Porter, Representative Eric Swalwell, former Los Angeles Mayor Antonio Villaraigosa, and former State Controller Betty Yee.
Political experts say the size of the field could make turnout and name recognition decisive and could lead to unexpected results in the primary.
“But if you divide that pie up by just two, and you divide the democratic pie up, which is admittedly a larger pie, by 7 or 8, the concern you get here is that democrats are going to lose out on even running to the general election. So even though there might be more democratic votes to be found in California for governor, they might not have a shot to cast those ballots for a democrat on the general election ballot,” said Monroe.
Monroe says party leaders may need to step in soon.
“I think the concern has to be among voters and I’m sure among the party leaders, so to speak, right, the party leaders sort of amorphously, is that they’ve got to figure out a way to delicately, you know, assure some candidates out of the race and figure out which candidates those should be and figure out how to manage those personalities and try to coordinate all the things that go in and around a gubernatorial election,” said Monroe.
On the Republican side, former Riverside County Sheriff Chad Bianco and Fox News contributor Steve Hilton.
With just a few months from the midterm elections, Monroe says both parties need to organize.
“What’s happening behind the scenes for the parties to try to coordinate themselves to make sure that the field that they offer to voters in June is a field that gives them the best chance for their best candidate to go forward to the general election,” said Monroe.
The primary election is set for June, with the general election in December.
California
Heavy rain, high tides cause flooding along stretch of Northern California
CORTE MADERA, Calif. (AP) — Heavy rain and high tides believed to be the most severe in two decades caused flooding in parts of Northern California on Saturday, prompting road closures and rescues of residents trapped in their cars.
Roadways through a 15-mile (24-kilometer) stretch from the Sausalito area to San Rafael were flooded after a downpour coincided with record-breaking “ King Tides,” Marin County Sheriff’s Sgt. Michael Dobbins said.
No injuries were reported but authorities were called to assist when cars got stuck in floodwater as high as three and four feet (1.1 and 1.2 meters), he said.
“There is a lot of water in the roadways,” Dobbins said, adding the tides were reportedly the highest in more than two decades. “Along with heavy rains, it just created the perfect storm for flooding on the streets.”
Authorities in the communities near San Francisco asked residents to stay home wherever possible until waters recede. Some residents kayaked along what normally would be city streets. Others waded out in water that passed their knees.
A flood warning was in place for the San Francisco area until 2 p.m. Saturday and an advisory until 2 p.m. Sunday, according to the National Weather Service in San Francisco.
King Tides occur when the sun, moon and Earth are in alignment and the moon is in its closest position to the Earth, creating a stronger gravitational pull.
California
UPDATE: Crash at California/Dakota
10:06 PM: Police are arriving at the scene of a two-vehicle crash reported at California/Dakota, with at least two people hurt.
11:06 PM: Police have just reopened the street. We went to the scene after a report that one vehicle had ended up on the lawn of a church – First Lutheran Church of West Seattle (WSB sponsor) – is on the southwest corner – but all we could see was one vehicle on the sidewalk. We’re following up with SFD regarding the people who were hurt.
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