State Farm Rate Hikes OK’d Amid “Statewide Insurance Crisis”

Dan Malka of Engel & Völkers Beverly Hills made a comment this past week that stood out amid California’s worsening insurance crisis.

In chatting with The Real Deal about his Santa Monica rental listing and the market in general post-wildfires, Malka mentioned the individuals and families displaced by the devastation that occurred in January. He pointed out many are still in hotels and short-term rentals getting renewed every three months as insurance payouts trickle out.

The situation is striking in light of California Insurance Commissioner Ricardo Lara’s decision on Tuesday to allow State Farm General to hike interim rates for homeowners by 17 percent, effective June 1. That’s in line with an administrative law judge’s ruling on the matter.

The decision followed temporary approval of a request made by California’s largest insurer in March that included a nearly 22 percent increase in homeowner rates, 15 percent hike to renters and 38 percent uptick in what’s called a rental dwelling policy for landlords who lease out their homes.

Agents have used the word “dynamic” to describe to TRD the current operating environment. It’s an attempt at diplomatically describing business given so many unknowns around where those displaced by the fires will live, for how long and how far a return to normal might be for the Pacific Palisades and Altadena.

Shoring up the insurance component might help add stability in what Lara called a “statewide insurance crisis.”

State Farm’s still on the hook for mapping out its recovery plan once it goes before Lara, the California Department of Insurance and a judge in a full hearing on rates. A date for that has yet to be set.

“I am focused on ensuring that State Farm pays its claims to wildfire survivors fully and fairly — and nothing is off the table,” Lara said.

Choice words from Tracy Tutor

Compass agent Tracy Tutor didn’t hold back in her opinion of comments made by agent Leonard Steinberg at TRD’s annual NYC Forum last week.

Compass’ Steinberg shared the stage with Douglas Elliman’s Eleonora Srugo, who is a cast member on “Owning Manhattan.” While on stage, Steinberg waded into the debate around reality TV’s impact on the industry at one point saying, “it over-sexualizes the role of the professional.”

Tutor shot back on social media calling out Steinberg’s thinking around how women should dress for work as being rooted in a “1950s sentiment” that is “outdated, sexist, misogynistic and unfair.”

OC resi sets 2025 record

On the deal front, Orange County’s high end is showing no signs of a slowdown.

The caveat, some agents would say, is that what’s trading are “unique” properties — whether that’s in relation to lot size, views or some other factor worth paying millions for.

The Newport Coast property at 1 Pelican Crest Drive fit that bill for the mystery buyer that plunked down $42 million in an off-market deal that closed this week for a gutted estate in the process of being rebuilt. The transaction is now OC’s priciest deal to close so far this year.

Daftarian Group | Luxe Real Estate’s Paul Daftarian, Michael Balliet and Ruby Xiaoya Wang represented the seller. Meanwhile, Plus Real Estate Group’s Rob Giem and Garrett Rau represented the buyer.

Kirk Lazarus’ $99K/month Santa Monica beach rental

Luxury resort designer Kirk Lazarus put up the for-rent sign on his beachfront Santa Monica estate. He’s asking $99,000 per month in what is one of Santa Monica’s priciest rentals currently on the market.

The property at 966 Palisades Beach Road, named Villa Molori, has six bedrooms and eight bathrooms. Among the amenities are 24-hour security, a cold plunge, steam room and bar and coffee station in each of the five guest bedrooms.

Dan Malka from Engel & Völkers Beverly Hills holds the listing.