Struggling state-backed insurance provider in California, facing critical issues; potential implications for policyholders' financial burdens.
Good afternoon! Check out today's unbelievable dirt on Cali:
- California's FAIR Plan: It's a wreck. Fire victims air grievances.
- Trump admin threatens to ax child care for 800,000 kids of theHead Start program.
- Cheech & Chong are rolling out their final joint this week. Will it really be their last hurrah?
- Here's today's electric news shebang.
Homeowners get hosed by California's risky insurance market
If commercial insurers ditch homeowners in California, they turn to the state's insurer of last resort - the FAIR Plan. But those enrolled typically get saddled with higher premiums for fire-prone properties, shelling out more for basic coverage.
And as LA Times journalists Laurence Darmiento and Sandhya Kambhampati highlight in an exclusive subscriber-only piece, residents in Pacific Palisades and Altadena felt the squeeze last year, with nearly double the properties enrolled in 2020. Now, fire survivors who lost their homes are relying on the FAIR Plan to help them pick up the pieces after their worst nightmare.
But the FAIR Plan ain't living up to its promises, pulling a no-show on many policyholders, who've complained about snail-paced payments and other issues.
It's crunch time for California's insurance crisis
Back in 2023, Allstate and State Farm dropped new policies for Cali properties, and officials from State Farm - the state's number one home insurer - cited a "rapidly growing catastrophic exposure" and a challenging reinsurance market as reasons. That move sparked a surge in FAIR Plan enrollees but left the state exposed beyond its intended size, according to Laurence and Sandhya.
As of March 2025, there are over half a million homeowner policies and nearly 18,000 commercial policies on the FAIR Plan, making it one of California's largest home insurers. Now, the FAIR Plan is asking for a $1-billion bailout, which would initially be funded by commercial insurers operating in the state. But if that goes through, policyholders across California could get hit with higher premiums.
You can catch more from Laurence and Sandhya in their exclusive LA Times piece.
Today's top happenings
- Trump's Head Start killshot threatens critical services for 800,000 kids.
- DHS commits a blunder, mistakenly booting U.S. citizens from the country.
- Get ready for the Real ID deadline. Here's what to do if you don't have yours yet.
- Anger flares over chainsawed trees destroying downtown L.A.'s charm.
- The State Bar of California admits it used AI to develop exam questions, stirring fresh fury.
- Maine felt the pinch from Trump's transgender athlete funding halt. Could Golden State be next?
- Money from new taxes will soon eclipse the billions spent on homelessness in the past decade. Who's watching the books?
- LA clings to its rep as the nation's smoggiest city for the 25th time in 26 years, despite progress.
Get unrestricted access to our musings. Subscribe here.
Banter and opinions
- Will California ever have a Republican governor? Some see a GOP chance to snag the position, claim columnist Mark Z. Barabak.
- Time's still on the clock, Archbishop Gomez. Suck it up, follow Pope Francis' lead, writes columnist Gustavo Arellano.
- Pope Francis saved the planet. Trump's rule gives his words added impact, penned columnist Sammy Roth.
- That genetics firm didn't bring back the extinct dire wolf, but did score a breakthrough in hype, scribbled columnist Michael Hiltzik.
This morning's must reads
- YouTube turns 20. It changed TV forever.
- Experience a Y2K quinceañera in L.A., in all its nostalgia and tenderness.
- A bumbling FBI agent defended himself with an unusual defense.
- Hollywood heartthrob Jon Bernthal wants to bring Broadway-caliber theater to Ojai.
- The formerly incarcerated find a second chance at Puppy Fades dog grooming salon.
What can we do to make this newsletter more valuable? Drop us a note at essentialcalifornia@our website*.
And, finally... from our archives
Barbra Streisand turned 80 on April 24, 1942. Columnist Jeanette Marantos wrote about a brand-new rose that sprouted in Streisand's garden last March - the Barbra's Baby rose. Only around 2,000 of these hybrid tea rose bushes are available so far, with more expected in the future.
Shake off the sleep, from the Essential California team
Ryan Fonseca, reporterAndrew Campa, Sunday reporterKevinisha Walker, multiplatform editorHunter Clauss, multiplatform editorChristian Orozco, assistant editorKarim Doumar, head of newsletters
Tap our top stories and topics on our website to keep up with the craziness.
- Environment and climate change are major concerns in California, as wildfires continue to pose a threat to residents and their homes.
- The FAIR Plan, California's insurer of last resort, is struggling to meet the needs of homeowners, particularly those in fire-prone areas.
- High premiums and slow payments have led to complaints from policyholders who are relying on the FAIR Plan after losing their homes to wildfires.
- Commercial insurers have been pulling out of California, leaving the FAIR Plan as the only option for many homeowners, but this has left the state exposed and the FAIR Plan is now seeking a $1-billion bailout.
- This decision could lead to higher premiums for policyholders across California.
- California's politics play a role in the state's insurance crisis, as officials struggle to find solutions to the growing problem.
- Businesses are also impacted by the insurance crisis, as they rely on insurance to protect their properties.
- The issue of climate change and its impact on wildfires and the environment is a hot topic on television and in movies.
- The entertainment industry is discussing ways to address the issue and promote environmental sustainability.
- The government is also playing a role in addressing climate change and its effects, through policy and legislation.
- Science is a key factor in understanding the causes of climate change and finding solutions to combat it.
- Immigration is another hot topic in California politics, with Los Angeles being a major destination for many immigrants.
- Cheech & Chong, famous entertainers from California, are set to release their final joint, marking the end of their storied career.
- Overall, it's a challenging time in California, with many important issues to address and difficult decisions to be made.
