By Levi Sumagaysay, CalMatters
CalMatters is a public interest journalism venture committed to explaining how California’s state Capitol works and why it matters
Photo: The Eaton Fire burns in the community of Altadena. Firefighters were unable to get water from hydrants that ran dry, as homes and businesses burned, on Jan. 8, 2025. Photo by Ted Soqui for CalMatters
February 4, 2025 (Los Angeles) - State Farm, the largest insurer for California homeowners, this week asked the state to approve “emergency” rate increases for insurance policy holders, saying the recent Los Angeles County fires have imperiled its finances.
The company wants an average 22% increase for homeowners and 15% for renters on top of rate hikes it requested last year. Those requests — 30% for homeowners, 52% for renters and 36% for condominium owners — have not been granted and are being challenged before the state’s Insurance Department, which is investigating the company’s financial situation.
In a letter dated Feb. 3, State Farm CEO Dan Krause and other executives wrote to Insurance Commissioner Ricardo Lara that the company “needs your urgent assistance in the form of emergency interim approval of additional rate to help avert a dire situation for our customers and the insurance market in the state of California.”
State Farm has received more than 8,700 claims and paid more than $1 billion to its customers in the state as of Feb. 1, the executives said. “We know we will ultimately pay out significantly more, as these fires will collectively be the costliest in the history of the company,” they added.
The company has nearly 3 million policies in the state, including 1 million homeowner policies, the executives said. They mentioned that last year, credit-rating firm AM Best downgraded the credit rating for State Farm General, the California arm of the nationwide State Farm Group, because of its financial picture.
State Farm executives want the interim rates to be effective May 1, and referenced their pending rate requests from last year. Also in their letter, they alluded to both their company’s financial position as well as the state insurance market’s ongoing struggles: “In addition to your other efforts, immediate approval of additional and appropriately supported rate… sends a strong message that the state is serious about reforming its insurance market and allowing insurers to collect sufficient premiums to protect Californians against the risk of loss to their homes.”
Lara’s plan to address insurance availability in the state took effect at the beginning of the year, just days before the L.A.-area fires. It is widely expected to lead to significantly higher premium increases as the state allows insurers to include catastrophe modeling and the cost of reinsurance when setting their rates.
In response to State Farm’s new request, the department is scheduling a meeting of its rate-review experts, State Farm and Consumer Watchdog, which last year challenged the rate increases, insurance department spokesperson Gabriel Sanchez said. Department staff will then make an “urgent formal recommendation for action” to the commissioner, Sanchez said.
Carmen Balber, executive director of Consumer Watchdog, said her group has repeatedly asked State Farm for more information about its finances, including why its parent company can’t “step in” and help its California business. Consumer Watchdog last year accused State Farm General of redirecting profit by buying reinsurance from its parent company, an allegation on which the company would not comment.
“Insurance Commissioner Lara must require State Farm to prove it needs this staggering increase,” Balber said.
CalMatters is a public interest journalism venture committed to explaining how California’s state Capitol works and why it matters
By Miriam Raftery
Photos by Lakeside Fire Department, which has sent firefighters to battle the Palisades wildfire
January 11, 2025 (Los Angeles) – After days of massive destruction and widespread evacuations, firefighters are finally making progress on four remaining wildfires in the Los Angeles area. At least 13 people have died in the fires, which have destroyed an estimated12,000 structures, the Los Angeles Times reports.
At least 90 firefighters from San Diego County have been dispatched to help fight the L.A. fires, including Lakeside Fire Department, which posted photos on social media of the Palisades Fire that their firefighters have been battling since Wednesday. Hundreds of thousands remain evacuated, as firefighters slowly make progress toward controlling fires fueled initially by hurricane-force winds.
Here are the latest updates from Cal Fire and L.A.-based news outlets:
The Palisades Fire has burned 22,600 acres and is now 11% contained. The wildfire has ravaged Pacific Palisades, portions of Malibu, and homes along Pacific Coast Highway. Current evacuation orders include much of Brentwood, Encino,Calabasas, Sansta Monica,Malibu and Pacific Palisades. This fire has damaged or destr
oyed around 5,300 homes; another 12,000 structures are still threatened.
The Eaton Fire has scorched14,117 acres and is 15% contained. Around 7,000 structures have been damaged or lost, according to fire officials, in Pasadena and Altadena.
The Kenneth Fire is now 80% contained after burning 1,052 acres near the Los Angeles and Ventura county lines. All evacuation warnings have been
lifted.
Evacuation orders have also been lifted for the Hurst Fire, which burned approximately 779 acres in the Sylmar area. The Hurst Fire is now 76% contained.
At least two other fires have been fully contained, including a blaze that threatened portions of Hollywood.
Firefighters have come from across the region and as far away as Canada and Mexico. Canada has deployed 250 firefighters, while Mexico has sent at least 101 “bomberos” or firefighters to L.A. Numerous inmate firefighters are also help to control the conflagrations.
After Governor Gavin Newsom declared a state emergency, President Joe Biden cancelled a planned trip to Italy to meet with the pope in order to get aid to California. President Biden announced that the federal government will cover “100 percent of all the costs” to fight fires in Los Angeles County, higher than the 75% customarily granted by the federal government to states during disasters.
It is unclear whether President-elect Donald Trump’s administration will continue to provide aid to California, since Trump has previously threatened to withhold disaster aid from states that didn’t vote for him. Asked if he is confident that the Trump team members will continue to send disaster aid to California, Biden responded, ”I pray to God they will,” Politico reports.
Source: SDG&E
January 12, 2025 (San Diego) –On Friday, San Diego Gas & Electric reported that it had restored power to all customers affected by Public Safety Power Shutoffs (PSPS). Despite the restorations, unprecedented and prolonged dry conditions continue. SDG&E encourages customers to remain prepared with the potential for future shutoffs in the coming days.
SDG&E began de-energizing customers earlier this week in response to elevated wildfire weather conditions and the driest start to the rainy season in San Diego County in the past 174 years. This proactive measure was taken to reduce wildfire risk and protect public safety. Following patrols and inspections of power lines on foot and by air, SDG&E crews restored power for all customers who were impacted by PSPS as of Friday evening.
During this week’s PSPS, SDG&E opened Community Resource Centers in the affected areas, providing customers with services such as Wi-Fi, food, and phone and medical device charging. With power now restored, all of the Community Resource Centers have been closed.
For information about this PSPS event and the potential for future events, please visit SDGEToday.com or follow SDG&E’s X channel, @SDGE.
East County News Service
January 28, 2025 (Jamul) -- Robert Hobbs sent in these images of the Border 2 Fire, which burned over 6,500 acres after starting on Otay Mountain in San Diego County on Jan. 23. These photos were taken Jan. 23 and 24 from Jamul.
By Miriam Raftery
Photo courtesy of Cal Fire
Update January 30,2025 10 a.m.-- All evacuation orders have been lifted. The fire is 100% contained.
Update January 29, 2025 9 a.m.-- The Border 2 Fire is now 90% contained, as rain helped firefighters' efforts. Cal Fire says there is no risk to the public or structure threats.
Update January 27, 2025 12 p.m.-- The overnight shelter at Cuyamaca College has closed. All evacuation warnings remai lifted. Some evacuation orders remain in effect in areas west of highway 94. For map, see: https://x.com/SDSheriff/status/1883974136143438278/photo/1.
Update 7:45 p.m. -- The fire is now 40% contained, per Cal Fire.
Update 5 p.m.-- All evacuation warnings have been lifted. Some evacuation orders remain in areas west of 94. Use caution when reentering, as firefighters are still at work.
Update 1 p.m.-- State Route 94 is reopened; evacuation notices for Dulzura, Honey Springs, and areas east of 94 have been lifted; these areas will be repopulated. Otay Lakes Rd. remains closed. To see maps of the affected areas, visit: emergencymap.sandiegocounty.gov/index.html and protect.genasys.com/fullscreenMap?.
January 26, 2025 8:30 a.m.— Firefighters held the #Border2Fire to 6,625 acres overnight and 10% contained. State Route 94 remains closed between Honey Springs Road and State Route 188.Tecate Rd. Evacuations remain in effect; view current evacuation areas: Genasys Evacuation Map. 1,117 personnel are fighting this fire.
Experts are looking at the soil in the fire’s perimeter to evaluate if there are any mudslide concerns and will work to mitigate those if they arise.
Cal Fire held a virtual community forum last night which can be viewed here. Cal Fire reports good progress on the fire, especially on the west side near Chula Vista Due to improved conditions, the Sheriff reports that jail visits will resume at the 3 Otay facilities.
On the east side and near Doghouse Junction, crews are constructing a containment line to prevent the fire from moving east towards Dulzura, Marron Valley, and Mexico.
.On the south side of the fire, there is some open line on the fire, but resources are working in arduous terrain to combat it. On the southwest side, ground crews and dozers continue to build line to prevent the fire’s spread.
Officials urge the public to not fly drones near the fire, including in the areas of Eastlake, Otay Ranch, Dulzura. Flying drones prevents aircraft from flying and dropping water/retardant on the fire.
Rain that began overnight should last through Tuesday off and on, which should help firefighters’ efforts particularly with grasses and smaller vegetation.
Per Cal Fire, the number one priority is getting people back to their homes once it is safe to do so.
An evacuation center is at Cuyamaca College’s gym, 900 Rancho San Diego Parkway, El Cajon.
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