Latest news with #CaliforniaDepartmentofInsurance
Yahoo
3 days ago
- Business
- Yahoo
LAPD reserve officer, brother charged with insurance fraud in Bentley crash
A reserve Los Angeles Police Department officer and his brother are facing felony charges after they allegedly committed insurance fraud with a Bentley convertible. Eric Benjamin Halem, 37, and his 32-year-old brother Jacob Halem were investigated by the California Department of Insurance, the agency said in a news release. The elder Halem, who serves as a reserve officer for the LAPD but was formerly a full-time officer, is accused of falsely reporting a crash involving a 2020 Bentley Continental GT, officials said. According to CDI officials, Benjamin Halem claimed his brother Jacob was the one driving the luxury vehicle when it was involved in a single-vehicle crash on Jan. 5, 2023. The Bentley, however, had been rented out through Ben Halem's company, Drive LA, which offers exotic car rentals and other services. Drive LA's website shows a Bentley Continental GTC available to be rented for $875 per day. It was during a rental period three days before the reported crash that the damage was actually done, CDI said, and it was the unnamed renter, not Jacob Halem, who was driving at the time. After the driver's insurance claim was denied by their company, Ben Halem 'allegedly filed a fraudulent claim with his insurance company on his personal policy, misrepresenting the accident details,' the release explained. 'He claimed that his brother, Jacob Halem, had been driving the vehicle at the time of the crash. To support their false claim, Eric and Jacob Halem submitted staged photographs of the damaged Bentley on a tow truck near the alleged accident location,' CDI said. Jacob Halem also 'provided a false statement to the insurance company investigator in an effort to corroborate his brother's fraudulent claim,' officials said. Their attempt was unsuccessful, however, as insurance adjusters used body-camera footage from Los Angeles County Sheriff's deputies responding to the real crash to demonstrate that the damage to the vehicle was done in the renter's crash on Jan. 2, 2023, not three days later. State officials said the fraud could have cost the insurance company more than $229,000. 'Insurance fraud impacts all Californians by driving up costs for consumers and businesses,' CDI said. 'If you suspect insurance fraud, report it to the California Department of Insurance at 800-927-4357 or visit Jail records show Ben Halem was arrested on March 27 and is free on $50,000 bond. Jacob Halem did not appear in a search of the records. The two men have been arraigned, CDI said, but no court information was available. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Los Angeles Times
23-05-2025
- Business
- Los Angeles Times
How to Make Sure You're Properly Insured Before the Next Wildfire
Recent wildfires have reshaped California's insurance landscape, and some Los Angeles homeowners are seeing their premiums skyrocket or are facing policy non-renewals. Wildfire survivors have also gotten smaller insurance payouts than expected, and other Los Angeles County residents who were spared from the fires may not realize they're underinsured. But there are proactive steps you can take now to make sure you're protected in the next blaze. Use this guide to learn how to prepare the proper documentation, choose the right amount of coverage, and know your rights. Standard homeowners' policies usually cover wildfire damage, but in high-risk zones, coverage may be reduced, excluded, or even canceled. 'Your insurance company is not on your side or your good neighbor. They're a for-profit business,' Amy Bach, Executive Director of United Policyholders, warned homeowners. Review these key components of your policy: If your insurer has dropped your policy or won't renew, compare policies through a broker, shop regional carriers, or seek help through the FAIR Plan. Many major insurers, including State Farm and Allstate, have limited or paused new policies in wildfire-prone regions, but you're not out of options. Alternatives include: Ask brokers about bundling options and ensure you're comparing policies based on replacement cost coverage, not just price. Know Your Rights Wildfire survivors in California are protected by a growing set of regulations and state laws enforced by the California Department of Insurance. If you believe your insurer has acted unfairly, file an online complaint with the California Department of Insurance or call 1-800-927-4357. 'They owe to replace what you had with like kind and quality up to your policy limits,' Bach said. 'Stick for stick, board for boards, the exact same house that you had.' California law requires insurance companies to offer discounts to homeowners who make their homes more fire-resistant. These discounts can range from 5% to 20%, depending on the insurer and the upgrades you make. Don't wait for disaster to strike. Take these documentation steps today so that the evidence can speed up your claim and reduce disputes over what was lost. 'The insurance company is not always going to take your word for things,' Bach said. Documentation can 'make or break your case.' Annual check-ins with your insurance agent allow your coverage to keep pace with your home's value and fire risk. Bach also recommends checking your dwelling coverage with some simple math to be sure it's realistic for California's current costs. 'If you know how many square feet of living space is in your home, and you know what your current dwelling limit is on the house,' Bach said, 'you want to divide that dwelling limit by the amount of square footage and see how much money you would have available to you to pay a contractor.' Bach said the amount can vary based on your home, but it should be somewhere between $300 and $400 a square foot at a minimum. Other experts estimate that rebuilding after the wildfires can average $600 per square foot, factoring in tariffs, labor shortages and increased demand. Custom homes or properties built with high-end, fire-resistant materials can reach over $1,000 per square foot. If you're not sure where to start, visit United Policyholders for more wildfire recovery and insurance resources. You can also try the insurance finder tool from the California Department of Insurance or read more insurance tips from CAL Fire.
Miami Herald
21-05-2025
- Business
- Miami Herald
State Farm seeks to boost California home insurance rate hike to 30%
A week after winning emergency approval to raise Californians' home insurance premiums, State Farm is seeking to boost that rate hike even higher to 30%. On May 13, the state's largest insurance company got the OK from regulators to increase rates by an average of 17% starting next month. State Farm secured the expedited rate hike after asserting it was in financial distress and expected $7.6 billion in claims arising from the deadly Los Angeles wildfires in January. The "interim" rate increase, however, was only part of a 30% hike the company asked for in June 2024. To reach the full amount, State Farm filed a request Monday for an 11% increase starting next year, on top of the already approved 17% increase. Since the hikes would happen sequentially, they would have the effect of raising rates by 30%. State Farm is also requesting to raise rates by 36% for condos and 52% for renters. The California Department of Insurance said it will hold a public hearing in October to continue gathering information from company officials as they seek to justify the requests. "State Farm wanting a rate increase doesn't change the law," the agency said in a statement. "All rates must be justified so consumers don't pay more than is required." It's unclear exactly how much premiums could go up in the Bay Area or which parts of the region would see the largest rate hikes. Statewide, the insurer covers roughly 15% of homes, totaling more than 1 million customers. When State Farm made its initial 30% request last June, the company asked the insurance department to grant a "variance" to raise premiums higher than usual due to its financial outlook. State Farm General, the company's California-only subsidiary, had issued multiple warnings about its solvency. S&P Global Ratings recently threatened to downgrade the insurer's credit rating, signaling concerns about its financial strength. With the June request still pending, the insurer asked regulators to approve the emergency hike after the devastating fires in Los Angeles County. At the recommendation of an administrative judge, Insurance Commissioner Ricardo Lara last week authorized the 17% hike, slightly less than the 22% the company had requested. In a statement, State Farm said it was "pleased" with Lara's decision but made clear it would continue pursuing the full 30% increase. Consumer advocates, however, said regulators should not have agreed to approve the expedited rate hike - the first time an insurer won such approval in California. They called on the insurance department to closely scrutinize the data that State Farm is now providing to justify another increase. "We've already heard from consumers who are outraged that they just got 17% and now they're asking for more," said Carmen Balber, executive director of Los Angeles-based Consumer Watchdog. State Farm's latest request is the most recent chapter in California's insurance crisis, as providers have ended coverage for hundreds of thousands of policyholders across the state in recent years amid unprecedented wildfire losses. California's insurance rates are closely regulated and, as a result, lower than in many other parts of the country. The insurance industry argues that has left insurers in an untenable situation, even as companies have won approval for repeated rate hikes in recent years. In an attempt to stabilize the faltering home insurance market, state regulators earlier this year finalized a plan that includes allowing insurers to raise rates based on the growing threat of climate change - long an industry demand - in exchange for expanding coverage in parts of the state with the greatest wildfire risk. Consumer advocates, however, contend the plan will lead to huge rate increases and lacks the teeth to force insurers to add homeowners. In the greater Bay Area, insurers who opt into the plan will be expected to write more policies in Marin, Napa and Santa Cruz counties, as well as parts of San Mateo and Sonoma counties and a sliver of Santa Clara County. Insurers would also have to offer new policies for fire-risk homes in suburban areas such as the East Bay Hills and Los Gatos. Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
Yahoo
08-05-2025
- Climate
- Yahoo
State fire marshal urges San Diegans to ‘harden homes'
(FOX 5/KUSI) — With summer approaching and temperatures rising, state officials are warning Californians about the increased risk of wildfires — and urging them to take steps now to protect their homes. State Fire Marshal Daniel Berlant visited the San Diego area this week to demonstrate home hardening measures to help prevent wildfire destruction. A live fire demonstration showed the stark contrast between a home built to resist wildfires and one without those safeguards. 'It's all part of the California Wildfire Prepared Home Program,' Berlant said. 'We're making sure that those who can't afford to do this work, who can't physically do this work, are able to get this done.' One of the key components of the program is creating 'Zone Zero' — the first five feet around a home. Fire officials recommend replacing mulch and vegetation with gravel, using non-combustible gutters and downspouts, installing flame- and ember-resistant vents, ensuring the roof has a Class A fire rating, and clearing six inches of space at the base of exterior walls. Defensible space remains important, with fire agencies advising at least 30 feet of clearance around homes, but Berlant emphasized that these new measures offer additional protection. 'One of the things we have learned is that if one neighbor does everything right but the next door neighbor does not, they're both still at risk,' he said. The increased severity of recent wildfires has also had major financial consequences. Entire neighborhoods in Los Angeles County were leveled by recent fires, and the destruction has put the insurance industry under pressure. Many homeowners have either lost their insurance coverage or are paying significantly higher premiums. 'We are seeing insurance companies constrict their writing because of these increasing wildfires,' said State Insurance Commissioner Ricardo Lara. Lara stressed the importance of proactive mitigation efforts. 'If a home does this mitigation, they're insurable. They keep their insurance — and by the way, their insurance actually goes down, almost by 22 percent in some cases.' Fire victim Diana Griffin knows the risks all too well. Her home in the San Diego County community of Crest was destroyed during the 2003 Cedar Fire. 'We didn't think the fire was going to make it over to our house,' Griffin said. 'Even though you think you're safe, you never know.' Griffin urged homeowners — especially those living near canyons, hills or open space — to take fire danger seriously. 'Embers with the winds can go into your air ducts and onto your plants close to your house and start fires that way,' she said. For homeowners facing insurance issues, Lara encouraged contacting the California Department of Insurance for assistance. 'We're here to help,' he said. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. For the latest news, weather, sports, and streaming video, head to FOX 5 San Diego & KUSI News.
Yahoo
05-05-2025
- Business
- Yahoo
Homeowners devastated by wildfires are now facing a new threat — here's what's happening
After January's devastating wildfires, California homeowners are facing more than just damage to their homes — they're navigating delays, rising insurance costs, and a system that's struggling to keep up. Over $6.9 billion has already been paid out and more than 33,000 insurance claims filed, per the California Department of Insurance. According to Bankrate, experts say this disaster may become the most expensive in U.S. history, outpacing even Hurricane Katrina. The wildfires that tore through Los Angeles and Ventura counties triggered an unprecedented volume of home insurance claims. While many large insurance providers have deployed catastrophe-specific "CAT" teams to help with processing, as Bankrate explained, delays are still widespread. Homeowners with pre-existing claims are finding themselves pushed further back in the line. According to a 2023 J.D. Power study, the average claim cycle had already stretched to nearly 24 days. For catastrophic events like the wildfires, the timeline often extends to 34 days or longer, per Bankrate. The wildfires have exposed cracks in the insurance system. As Bankrate observed, California's FAIR Plan, the state's insurer of last resort, has run out of money and is now leaning on private insurers and homeowners for support. Meanwhile, roughly 40% of wildfire-affected households reportedly receive up to $300,000 less than they're owed under state law, according to a 2023 study from the Federal Reserve Bank of Philadelphia. This situation isn't just a short-term setback, either. With major carriers like State Farm raising rates and limiting new policies, and with billions in losses still being tallied, homeowners across the state may soon face skyrocketing premiums and fewer options. The planet's rising temperatures are directly tied to human activity, especially the burning of dirty energy sources like gas and oil, as NASA explained. Do you think America is in a housing crisis? Definitely Not sure No way Only in some cities Click your choice to see results and speak your mind. This heat-trapping pollution creates conditions that allow extreme weather events, such as wildfires, to thrive, which puts our homes and communities at risk. As a result, insurance companies are backing out of high-risk areas, per NPR, leaving many homeowners without coverage. Supporting cleaner, less expensive energy and building more resilient homes can help cool things down and keep our neighborhoods safer in the long run. If you have an open insurance claim, know your rights under California law. You have the right to timely updates, to choose your own licensed contractor, and to request a full copy of your claim file, per Bankrate. You're also entitled to actual cash value payouts before any rebuild begins, if your policy includes replacement coverage. On a broader scale, supporting less expensive, clean energy options and smart home upgrades — like fire-resistant features and energy-efficient retrofits — can make homes more resilient and reduce air pollution linked to these extreme events. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
