Insurance Hour

The California insurance market is once again at a tipping point. In the wake of catastrophic wildfires that have devastated communities and caused billions in damages, State Farm—the nation's largest property insurer—has requested an emergency 30% rate increase in California.

To many consumers, the news feels like déjà vu: higher premiums, fewer options, and growing uncertainty. But as insurance expert and Insurance Hour host Karl Susman explained during his recent appearance on NewsNation, this move is not just predictable—it's necessary for the survival of California's insurance system.

Let's unpack what this emergency rate increase means, why it's happening now, and how it will affect homeowners both inside and outside California.

According to Susman, this isn't a sudden or opportunistic decision. State Farm had already submitted a request six months ago for a similar 30% increase, which was delayed amid regulatory review by the California Department of Insurance. Since then, a series of wildfires have dramatically worsened the company's financial exposure.

"We're now six months later, and we've had this unbelievable catastrophe happen," Susman said. "They're putting in a request for additional rate increases. This is what you expect to see when a company really needs to get their pricing in balance with what their exposure is."

In plain terms: insurance companies price policies based on risk. When that risk changes—through more frequent, more destructive wildfires—the math behind those rates must change too.

California's insurance regulations, however, restrict insurers from raising rates quickly, even when losses spike. This regulatory lag creates a dangerous gap between what insurers collect and what they must pay out—a gap that has already driven multiple carriers to pause or exit the California market entirely.

In their filing, State Farm warned that wildfire claims will "further deplete capital." For policyholders, that phrase may sound abstract, but as Susman explained, it's a crucial signal of financial strain.

"The rate increase being sought today isn't putting money in anyone's pocket for claims right now," he clarified. "That process takes months to implement and then an entire year for the company to actually collect premiums."

The key point: rate hikes don't fund current claims—they fund future risk. Insurers must first pay out of their existing reserves. To do this, State Farm is drawing money from subsidiaries and reserve ac ...

An in-depth discussion on Fox 11 News between host Hal Eisner and insurance expert Karl Susman about the unprecedented wildfire crisis in Southern California and its insurance implications. The conversation addresses multiple aspects of the crisis, from immediate response to long-term implications. Karl Susman, owner of Susman Insurance Agency, provides detailed insights about insurance claims processes, potential scams, and the future of insurance in California. Key points include the importance of maintaining existing insurance policies, the role of the California Fair Plan, and the impact on both property and auto insurance rates. Susman notes that insurance companies are processing claims quickly, with some making electronic payments in the millions of dollars. He also warns about scammers targeting vulnerable fire victims and emphasizes the importance of home hardening measures, such as maintaining proper tree distance from homes (5 feet) and having fire-resistant roofs. The discussion reveals that Susman's agency alone is handling over 130 total loss claims from the recent fires.

Highlights

Initial Discussion of Wildfire Crisis and Insurance Response

Host Hal Eisner introduces the unprecedented nature of the recent wildfires and their impact on Southern California communities. Karl Susman describes the unique challenges of this fire, noting its unusual growth pattern and zero containment. The segment includes emotional testimonials from fire victims expressing their shock and determination to rebuild. Susman emphasizes the importance of maintaining existing insurance policies and warns against shopping for new coverage during this period.

Insurance Claims Process and Immediate Assistance

Susman details the immediate steps fire victims should take, emphasizing the importance of filing claims promptly. He notes that insurance companies are making rapid electronic payments, some in the millions of dollars. The discussion covers both homeowner and renter's insurance claims, with Susman explaining that the California Department of Insurance has implemented protective measures for recently canceled policies in affected areas.

Scams and Consumer Protection

The segment warns about various scams targeting fire victims, including fraudulent rebuilding contracts and identity theft schemes. Susman advises against responding to unsolicited communications claiming to be from FEMA or other government agencies, emphasizing that legitimate assistance requires victims to initiate contact.

Future of Insurance in California

Discussion focuses on the broader implications for California's insurance market. Susman explains that despite high risk factors, California currently ranks around sixth for least expensive property insurance nationally. He predicts future rate structures will more accurately reflect risk levels, with higher-risk areas paying more and lower-risk areas potentially seeing reduced rates.

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When wildfires devastate communities across California, the journey from evacuation to recovery can be overwhelming. In the aftermath of destruction, homeowners and renters face not only emotional loss but the daunting task of navigating insurance claims, temporary housing, and rebuilding. In a recent FOX 11 News In Depth segment with host Hal Eisner, insurance expert Karl Susman offered a grounded, practical roadmap for those beginning this long process — from filing the first claim to keeping existing coverage intact.

This blog unpacks Susman's key advice and expands on what every California policyholder should know in the wake of a disaster.

It's natural to feel paralyzed after losing your home or possessions in a wildfire, but Susman stresses that time is critical. The first and most important step is to contact your insurance company and file a claim.

"Get that claim filed and get that adjuster to start giving you money," he emphasized.

California regulations require insurance companies to promptly issue payments for additional living expenses (ALE) such as temporary lodging, food, and essentials. Many survivors leave with nothing but the clothes on their backs, needing funds immediately for hotel rooms, meals, and even laptops to continue working.

Susman noted encouraging signs:

"Carriers have really stepped up in a way I only could have hoped they would. We're seeing electronic fund transfers being made every day in the millions."

That kind of responsiveness — especially compared to past wildfire recovery efforts — is a promising trend, but it only helps those who take action early.

Tip: When filing a claim, record the date and time of your call, note the name of the representative, and save every email or letter you receive. Documentation is your best ally throughout the process.

Under California's Fair Claims Settlement Practices Regulations, insurance companies must advance payments for ALE as soon as coverage is confirmed. These funds cover:

• Hotel stays or short-term rentals

• Meals and groceries

• Essential clothing and personal care items

• Temporary office or equipment expenses for remote work

Homeowners should never wait until they've submitted full documentatio ...

As flames continue to scorch the hills of Southern California, the devastation left behind is not only physical but financial. For thousands of residents, rebuilding after a wildfire isn't just about clearing debris—it's about navigating an insurance system under unprecedented stress. In a recent FOX 11 News In Depth discussion with host Hal Eisner, insurance expert Karl Susman offered a candid look into the challenges facing homeowners, renters, and insurers alike amid the ongoing crisis. His insights reveal the growing fragility of California's property-insurance market and what consumers can do to protect themselves before disaster strikes again.

Wildfires are nothing new in California, but Susman points out that the scale and frequency of recent fires are unlike anything the state has experienced before. "Normally there's a fire, containment increases, and anxiety goes down," he explained. "But this one just kept growing while containment stayed at zero."

Insurers traditionally priced risk assuming a catastrophic wildfire might occur once every 100 years. Today, that "once-in-a-century" event happens every few years—a trend that's breaking traditional actuarial models. Each new fire compounds the financial strain left by the last, leaving carriers wary of offering coverage at all. The domino effect is clear: higher premiums, widespread non-renewals, and an increasing number of homeowners forced into the state's last-resort coverage, the California FAIR Plan.

Susman's first piece of advice is simple yet crucial: keep the policy you already have. In an unstable market, switching insurers can be risky.

"This is not the time to be shopping around," he warned. "Make sure your policy is on auto-pay. Don't let it lapse—even by accident."

If a policy lapses or is non-renewed, getting coverage again may be nearly impossible. The California Department of Insurance (CDI) does temporarily prohibit non-renewals in zip codes directly affected by wildfire disasters, but homeowners must check their eligibility manually. Susman urges residents to visit insurance.ca.gov to confirm whether their property falls within those protected zones.

For homeowners who have suffered losses, the most important step is to file a claim immediately. Many residents delay because they're overwhelmed, but prompt filing triggers key consumer protections. California regulations require insurers to issue payments for additional living expenses (ALE) such as temporary lodging, food, and clothing within a defined time frame.

"People l ...

When disaster strikes, Californians know all too well that the aftermath lingers long after the last ember is extinguished. In the wake of devastating wildfires across Los Angeles and Ventura Counties, thousands of families are facing hard questions: Can I rebuild? Will my insurance cover me? What happens to my property value?

On a recent episode of Insurance Hour, host Karl Susman sat down with veteran realtor Debbie Bremner—a 48-year expert in Southern California's housing market—to unpack how these disasters ripple through both real estate and insurance sectors. Together, they explored market trends, consumer protections, appraisal challenges, and the long-term socio-economic impacts of wildfires on California communities.

Even before the wildfires, California's housing market was notoriously strained—characterized by low inventory, high interest rates, and sky-high prices. The destruction of thousands of homes only worsened the imbalance. Bremner noted that many clients were left "paying more to rent than they did to own," as displaced homeowners flood the rental market with limited options.

"Construction takes time. Rehab takes time," she explained. "We're looking at a tight market for a long time to come."

Short-term, prices for remaining homes may tick upward due to reduced inventory. But the long-term trajectory remains uncertain. Some families plan to rebuild; others, weary of climate risks and regulatory obstacles, are choosing to relocate out of state. The combined effect could reshape entire neighborhoods—creating patches of rebuilt homes surrounded by vacant lots and overgrown foundations.

Another urgent issue emerging from wildfire zones is rental price gouging. In moments of desperation, displaced residents are being asked to "name their best offer" just to secure a roof over their heads. Bremner warns that this practice isn't just unethical—it's illegal.

Under California's anti-price-gouging law, landlords may not raise rents by more than 10% following a declared emergency. Violators face up to $10,000 in fines and even jail time. "They are enforcing it," Bremner emphasized. "And not only that—they're enforcing it against the realtors who facilitate it."

Her advice? Before signing any lease or purchase agreement, consult your attorney or realtor to confirm market rates. Consumers should report violations to local authorities or the California Department of Justice.

California is once again facing a staggering financial and emotional recovery after a new wave of devastating wildfires. The Los Angeles County blazes, which consumed more than 55,000 acres and destroyed nearly 12,000 homes, have left more than 150,000 people displaced. The damage, estimated at up to $275 billion, represents not only one of the costliest fire events in state history but also a defining moment for the insurance and emergency management systems struggling to keep up.

On CBS Evening News, insurance expert Karl Susman, host of Insurance Hour, weighed in on what these fires mean for homeowners, insurers, and the long-term sustainability of California's property insurance market. His insights revealed both the strength and fragility of the system designed to protect Californians when disaster strikes.

The raw numbers tell a sobering story. Thousands of structures lost. Hundreds of thousands displaced. Damage exceeding a quarter trillion dollars.

For most families, these losses are not just emotional—they're financial. Wildfire recovery costs ripple far beyond rebuilding. Homeowners face new housing expenses, replacement of personal property, increased insurance premiums, and the uncertainty of whether their insurers will stay solvent through the surge in claims.

As Susman explained to CBS:

"There's no question that these dollars are huge. But I'm not seeing any indication that an insurance company will not be able to fulfill their obligations and pay their claims."

That statement provides reassurance at a time when homeowners are anxious about the stability of their insurers. While the numbers are eye-popping, California's insurance regulations require companies to maintain sufficient reserves, reinsurance, and liquidity to handle large-scale disasters.

Still, the broader impact of these fires will be felt through premium increases and tightening underwriting standards in the months to come.

Following the wildfires, thousands of displaced Californians registered with FEMA (the Federal Emergency Management Agency) seeking temporary housing and financial assistance.

One homeowner interviewed by CBS described the FEMA process as "quick, but overwhelmed." That phrase captures the paradox of post-disaster relief: help exists, but the sheer volume of need often outpaces the system's capacity.

FEMA's role is to provide short-term aid, not long-term rebuilding funds. It can off ...

As California continues to battle record-breaking wildfires, thousands of residents are once again facing the aftermath—displacement, uncertainty, and the daunting process of filing insurance claims. Wildfires don't just destroy homes; they test the limits of the insurance system itself.

In a recent Insurance Hour discussion, Karl Susman, a longtime California insurance expert and host of the program, shared crucial guidance for homeowners trying to navigate the complex claims process after a catastrophic fire. His insights help separate panic from practicality, offering a roadmap for homeowners to recover both financially and emotionally.

Fire damage is among the most universally covered perils in insurance. Whether you own a home, condominium, or rent an apartment, fire coverage is typically included in every property insurance policy.

As Susman explained:

"It's very unusual to have any type of property insurance policy—homeowners, condo owners, renters, HOAs—without fire coverage as the primary peril. The only exception would be a policy where fire is excluded because it's being obtained somewhere else."

This means that even if other risks—like flood or earthquake—require separate coverage, fire protection is almost always built in. Homeowners can take comfort knowing that unless they've explicitly waived or replaced that coverage, they're protected.

One of Susman's strongest recommendations for evacuees and affected homeowners is simple but vital: file your insurance claim right away.

Even if you're unsure about the extent of your damage—total loss, partial loss, or just smoke exposure—starting the claim early helps establish your eligibility and triggers important coverage benefits like Additional Living Expenses (ALE).

"If you're evacuated, put the claim in," Susman emphasized. "Whether you know if there's a total loss, a partial loss, or smoke damage—file it. Don't wait."

Many homeowners hesitate, worrying that filing a claim might affect their record or future premiums. However, Susman clarifies a key distinction:

"When it comes to catastrophe losses like wildfires, the insurance industry does not rate people based on catastrophe claims. These aren't underwritten on an individual basis. It's not something within the consumer's control."

In short, your rates won't increase simply because you were caught in a wildfire zone.

California's wildfire season has once again left families across the state reeling. Beyond the physical and emotional devastation, survivors now face another daunting task—dealing with their homeowner's insurance payouts. For many, this process can take months—or even years—and comes with complex choices about whether to rebuild, relocate, or start over somewhere else.

In a recent KNBC TV News segment, consumer reporter Chris Kimura spoke with industry experts, including Karl Susman, host of Insurance Hour and veteran California insurance broker, to shed light on what homeowners can realistically expect after a total-loss fire. Their discussion offered critical insights into timelines, payout structures, and the practical steps families can take to ensure they receive what they're owed.

When a wildfire destroys your home, insurance coverage is supposed to help you rebuild your life. But the timeline is rarely quick.

According to Karen Collins of the American Property Casualty Insurance Association, most homeowners should brace for a process lasting many months to several years. Between securing permits, selecting contractors, and navigating supply shortages, even straightforward rebuilds can stretch beyond expectations.

As Collins told KNBC:

"Realistically, it's going to take months or even a couple of years to go through the process of securing permits and identifying a contractor."

For families still reeling from displacement, those words can be crushing. Many homeowners find themselves facing the uncomfortable question: Should we rebuild—or should we move on?

After a wildfire, insurance companies typically owe you the cost to rebuild or replace your home. But how that payout is handled depends on what you decide to do next.

Karl Susman explained it simply:

"As long as you are putting yourself back in a home, you should be getting the same type of recovery from your insurance company."

That means whether you rebuild on your original lot, buy an existing home somewhere else, or even build a new house in a different city, your replacement cost coverage should follow you—as long as your intent is to live in a comparable home.

However, choosing not to rebuild can significantly affect your payout. Homeowner's policies are designed to restore you ...

California's homeowners are facing a storm that's not made of wind or fire—but of policy cancellations, non-renewals, and skyrocketing premiums. As wildfires intensify, insurers are reassessing their exposure, leaving thousands of residents scrambling for coverage. In a recent discussion, insurance expert Karl Susman shed light on why insurers are retreating, how the system really works, and what homeowners can do to protect themselves in this rapidly changing environment.

For decades, Californians trusted familiar insurance names like State Farm or Allstate to safeguard their homes. But in the past few years, these companies have pulled back, non-renewing tens of thousands of homeowners—particularly in fire-prone regions like the Pacific Palisades, Malibu, and parts of Northern California.

In one instance, State Farm non-renewed 1,626 policies in a single ZIP code (90272). For many residents, this was a devastating blow. Some had been loyal customers for 20 or 30 years, only to receive a terse letter: "We will not be renewing your policy."

As Susman explains, "We were upset at the time. But looking back, maybe they knew something we didn't. They were using catastrophe modeling."

The term catastrophe modeling may sound technical, but it's at the heart of today's insurance crisis. Insurers now use advanced data analytics—satellite imagery, drone surveys, and risk simulations—to forecast potential losses from natural disasters. These models don't just assess an individual property; they evaluate the entire region's risk profile.

The results have been sobering. Wildfires once considered "100-year events" are now occurring every three to four years. In insurance math, that's a game-changer. As Susman notes, "When a loss becomes a near certainty, how do you insure that? You can't do the math on an uninsurable event."

These models inform insurers' underwriting decisions. If the probability of loss exceeds acceptable thresholds, companies reduce exposure—meaning they stop writing or renewing policies in that region. That's why once-affordable, widely available coverage has become so scarce in California's hills and canyons.

Susman describes the shift bluntly: "It's no longer shopping for insurance—it's hunting."

Years ago, a broker could call a dozen carriers and find the best fit for a homeowner's needs. Today, options are so limited that agents scramble to secure any policy before it's gone. It's not about comparison—it's about survival.

California's insurance market is once again at a crossroads. Following the devastating Los Angeles County wildfires, thousands of homeowners—many already forced out of traditional insurance markets—are depending on the California FAIR Plan to rebuild. But with estimated payouts approaching $6 billion, experts warn that the state's last-resort fire insurer is facing a financial and operational stress test unlike any in its history.

On ABC 10 News, reporter Jane Kim spoke with insurance expert Karl Susman, host of Insurance Hour, who explained both the risks and the resilience of this vital but strained safety net. His insights shed light on how the FAIR Plan operates, why it remains solvent despite record losses, and what its future may mean for millions of Californians caught in the middle of the insurance crisis.

The FAIR Plan—short for Fair Access to Insurance Requirements—was never intended to be a permanent insurance solution. Created by the California Legislature in 1968, it was designed as a temporary stopgap for homeowners unable to obtain coverage through private insurers, especially in high-risk wildfire areas.

But today, that "temporary" plan has become a lifeline for hundreds of thousands of homeowners across the state.

As major carriers like State Farm, Allstate, and Farmers restrict new policies or exit high-risk regions altogether, homeowners in places like Alpine, Napa, and the foothills have few options left.

One homeowner interviewed by ABC 10, Paul Felber, described the uncertainty vividly:

"If I was a new buyer, I'd be hesitant to even buy because I wouldn't know whether I could maintain my mortgage over the next five or ten years."

For many like Felber, the FAIR Plan isn't just a choice—it's the only way to meet mortgage requirements and maintain financial stability.

The latest Los Angeles County fires are projected to cost the FAIR Plan nearly $6 billion in claims, primarily for properties in the Pacific Palisades and surrounding areas. That staggering figure raises an obvious question: Can the FAIR Plan afford it?

According to Karl Susman, the answer is yes—but not without strain.