Insurance Hour

Insurance isn't exactly the most glamorous topic, but it touches nearly every part of our lives—from our homes and cars to our health and financial security. In a recent episode of Insurance Hour, host Karl Susman tackled a broad range of listener questions—each revealing simple but powerful ways to understand coverage, cut costs, and avoid the costly mistakes many policyholders make.

Whether you're a homeowner, a parent of a teenage driver, or just trying to make sense of all those premiums, this discussion uncovered valuable insights worth sharing.

One of the first listener questions came from Erica in Boise, who asked whether it's better to have a higher deductible on her homeowner's policy to keep premiums low.

Karl's response: a higher deductible can absolutely save you money, but only if you can comfortably afford to pay that amount out-of-pocket when a loss occurs.

Raising your deductible is usually better than reducing coverage or lowering limits, which can leave you dangerously underinsured. However, it's essential to do the math—if you can't afford your deductible in an emergency, your "savings" will evaporate the moment you file a claim.

Pro Tip:
Use your emergency fund as your guide. If you have $2,500 set aside, don't choose a $5,000 deductible just to save a few dollars a month.

Kevin from Dallas asked a common question: should he put his teenage daughter on her own auto policy or keep her on the family's plan?

Karl's answer was eye-opening. It's not just your choice—it's about "insurable interest." To have her own policy, your daughter must legally own or lease the vehicle. Otherwise, the insurer could deny a claim because she doesn't have a legitimate ownership stake.

Even if the car is in her name, if she lives under your roof and you support her financially, you may still be liable for damages she causes—meaning a separate policy won't necessarily shield you.

The Bottom Line:
Keeping your teen on the family policy is usually safer and easier. It ensures full coverage continuity and avoids liability confusion down the line.

Another listener wondered if changing mortgage lenders during a refinance affects their insurance.

The short answer: No, not usually. Changing the "mortgagee"—the bank listed as an interested party on your policy—doesn't alter ...

California's latest wildfire catastrophe has once again tested the strength and responsiveness of the state's insurance industry. With entire communities reduced to ash and thousands displaced, policyholders are now confronting a second wave of stress—navigating the complicated process of insurance recovery.

On California Insider, insurance expert Karl Susman, President of Susman Insurance Agency and host of Insurance Hour, shared a candid, behind-the-scenes look at how insurers are responding to the Los Angeles-area fire losses, why payouts vary dramatically, and what policyholders need to know to protect themselves in the months ahead.

His perspective reveals a nuanced truth: most insurers are paying claims, but the pace, structure, and amount of those payments depend on a complex web of contracts, regulations, and financial realities that few consumers fully understand.

Wildfires in Southern California are no longer seasonal events—they're annual catastrophes. This latest disaster, according to Susman, has destroyed or severely damaged hundreds of properties among his own agency's clients alone.

"We've got over a hundred total-loss claims and hundreds more with smoke, heat, or ash damage," Susman said.

The losses are staggering—not just in property value but in logistics. Insurance carriers are flying in adjusters from across the country, setting up mobile claims centers, and issuing digital payments within days for emergency living expenses.

But as Susman noted, speed varies widely between carriers. The reason? Not every insurer is equipped—or staffed—to handle such widespread damage simultaneously.

Larger, national carriers like State Farm, Allstate, or Farmers have dedicated catastrophe response teams—specialized units trained for large-scale events. These teams arrive on the ground within days, assess losses, and process immediate assistance.

By contrast, the California FAIR Plan, which many residents in high-risk wildfire zones rely on, operates with a fraction of that capacity.

"They're paying, but they're slow," Susman explained. "It's not because they don't want to pay—it's because they don't have enough people."

The FAIR Plan often contracts third-party adjusters and temporary staff to process claims, creating unavoidable delays. Still, despite those operational limitations, it remains financially secure—backed by every admitted insurance company in California.

As wildfires tear through Southern California, destroying entire neighborhoods and upending lives, one question dominates the minds of homeowners: Will my insurance cover it—and when will I see the money?

In a revealing interview on California Insider, insurance expert Karl Susman, President of Susman Insurance Agency and host of Insurance Hour, offered a candid look inside how insurers are responding to the Los Angeles fires, how payouts are being handled, and what challenges both policyholders and companies face in this unprecedented disaster.

His insights shed light on the complex machinery behind California's embattled insurance system—a system straining under billions in losses, workforce shortages, and regulatory constraints, yet still tasked with protecting homeowners in the nation's most wildfire-prone state.

According to Susman, the devastation from the LA fires is staggering. Thousands have been evacuated, and over a hundred of his own insured clients have lost their homes entirely.

"At last count, about 104 of our insureds have total losses," Susman said. "And when you count smoke, ash, and heat-related damage, that number jumps to several hundred."

The scale is so large that insurance adjusters are being flown in from across the country to handle the claims surge. Insurers are issuing electronic fund transfers (EFTs) in the millions—sometimes within days—to help displaced homeowners begin recovery.

Despite the speed of some payouts, Susman cautioned that many homeowners, especially those insured under the California FAIR Plan, face slower responses due to capacity issues rather than ill intent.

"It's not that they don't want to pay—it's that they don't have enough people," he explained. "You might have one adjuster handling hundreds of claims."

California's FAIR Plan (Fair Access to Insurance Requirements) was designed as a last-resort fire insurance option for homeowners who can't find private coverage. It's not state-funded; rather, it's a shared pool supported by all admitted insurance companies in California.

Susman clarified its structure:

• The FAIR Plan has cash reserves, reinsurance, and the ability to issue bonds

When wildfires sweep across California, they leave behind more than scorched earth—they leave uncertainty, heartbreak, and complex insurance decisions. Thousands of families each year face the same agonizing question: Should we rebuild or move on?

In a recent NBC Bay Area segment, Karl Susman, insurance expert and host of Insurance Hour, helped wildfire survivors understand what their homeowner's insurance truly covers, how payouts work, and what to consider before deciding whether to rebuild. His insights cut through the confusion many homeowners face after disaster strikes—especially when emotions, finances, and policies collide.

This post unpacks those lessons, explaining what every wildfire survivor (and every California homeowner) needs to know about navigating insurance claims after catastrophe.

Recovering from a wildfire isn't just about rebuilding structures—it's about rebuilding lives. Homeowners who've lost everything are forced into rapid decision-making while dealing with insurance complexities, construction delays, and emotional exhaustion.

As Karen Collins from the American Property Casualty Insurance Association explained in the NBC segment, the recovery timeline can be long:

"It typically takes a number of months—or even a couple of years—to secure permits, find contractors, and complete rebuilding."

That estimate often surprises survivors who expect a faster payout and return to normalcy. Unfortunately, in the real world, even the best insurance coverage can't overcome California's housing shortages, contractor backlogs, and permitting bureaucracy.

This is where understanding your policy—and your options—becomes critical.

After a wildfire, policyholders usually face two main paths:

1. Rebuild on the same lot, or

2. Use insurance proceeds to buy or build elsewhere.

The instinct for many is to "start fresh" in a safer community. But as Karl Susman emphasized, that decision has major implications for your payout.

"As long as you are putting yourself back in a home, you should be getting the same type of recovery from your insurance company," Susman explained. "But if you choose not to rebuild or repurchase, your payout could be reduced."

Most homeowner's insurance policies are designed to r ...

Few financial products spark as much confusion—or emotion—as life insurance. Some see it as a lifeline, a way to protect family and legacy. Others view it as an expensive mystery, sold through jargon and fear. And then there are those who avoid it altogether, assuming it's something they'll "get to later."

In a recent episode of Insurance Hour, industry expert Karl Susman tackled this head-on with refreshing honesty, separating the myths from the mechanics of life insurance. His verdict? Life insurance can be one of the most powerful financial tools in your portfolio—but only if you understand what you're buying.

This post breaks down the good, the bad, and the ugly of life insurance—the truths every policyholder and agent should know.

At its best, life insurance is pure peace of mind. It's designed to answer one critical question: If something happens to me, what happens to the people who depend on me?

When a breadwinner dies, their income doesn't just vanish—it's replaced by expenses, debt, and disruption. Life insurance fills that financial vacuum. A well-structured policy can:

• Replace years of lost income

• Pay off a mortgage

• Cover college tuition or childcare

• Provide retirement continuity for a surviving spouse

"You don't buy life insurance because you're going to die," Susman explained. "You buy it because people you love are going to live."

In essence, it's a contract of compassion—a promise that grief won't be compounded by financial ruin.

Beyond income replacement, life insurance is one of the most efficient ways to transfer wealth. Payouts are typically tax-free, immediate, and immune to probate delays. For business owners or high-net-worth individuals, it can fund buy-sell agreements, settle estate taxes, or equalize inheritances among heirs.

Permanent policies—such as whole life and universal life—can also serve as long-term savings tools. Over time, they accumulate cash v ...

When disaster strikes—especially in the wake of California's devastating wildfires—homeowners are thrust into one of the most stressful experiences imaginable: filing an insurance claim. Amid the smoke and uncertainty, many are approached by public adjusters, promising to help "fight" the insurance company and secure a larger payout.

But are these adjusters really the heroes they appear to be? Or can their fees and fine print add yet another layer of trouble to an already complex process?

In a recent NBC4 Los Angeles segment, consumer reporter Chris Chmura explored the growing presence of public adjusters in wildfire-stricken neighborhoods. Alongside him, insurance expert Karl Susman offered practical advice for homeowners trying to navigate the post-disaster claims maze—without losing more than they can afford.

After a wildfire or major catastrophe, insurance claims flood in by the thousands. Each claim represents a homeowner desperate to rebuild, but also a potential point of contention between the policyholder and the insurer.

In this chaos, public adjusters present themselves as advocates for the policyholder. They are licensed professionals—not employees of your insurance company—who prepare, file, and negotiate insurance claims on your behalf for a fee.

Their job, essentially, is to "fight" the insurer to secure a higher settlement. But as Susman and NBC's report made clear, it's not quite that simple.

"Public adjusters absolutely do have a place in this industry," Susman said. "But that place comes down the line."

In other words, homeowners should understand both the timing and the cost of involving an adjuster—because acting too quickly can cost you tens of thousands of dollars in unnecessary fees.

After the Palisades and Eaton fires, entire neighborhoods were left in ruins. Insurance companies were inundated with claims, and homeowners were desperate for clarity. That's when the public adjuster industry mobilized, sending representatives to knock on doors, hand out brochures, and promise bigger payouts.

NBC's Chmura described the trend bluntly:

"Public adjusters are sweeping into some of these neighborhoods."

These adjusters often arrive before homeowners have even heard back from their insurance carriers—sometimes within days of the disaster. For people emotionally draine ...

As flames tore through Los Angeles County in the Eaton and Palisades fires, entire neighborhoods were reduced to ash. Early estimates suggest that more than 12,000 homes and businesses were destroyed, and at least 25 lives were lost. For many Californians, the tragedy has reignited an urgent question: What happens when the insurance system itself is on fire?

In a candid interview with Spectrum News, insurance expert Karl Susman, President of Susman Insurance Services, offered a rare look behind the curtain of California's embattled insurance market. Speaking both as a professional and as an evacuee himself, Susman shared insights into the evolving insurance landscape, the role of government intervention, and how new reforms might finally give the state a fighting chance to stabilize coverage for homeowners.

Susman's appearance on Spectrum came just days after he and his own family were forced to evacuate their home in Brentwood.

"The family is everything," he said. "As long as my family is safe, everything else we can deal with."

That human element underscores a point often lost in policy discussions — that behind every insurance claim lies a family navigating loss, uncertainty, and recovery. Even for industry professionals, these fires are more than numbers on an actuarial chart; they're lived experiences that shape how the system must evolve.

Spectrum's host, Giselle Fernandez, opened by noting what seemed to be a positive headline: State Farm had announced it would renew some homeowners' policies in L.A. County, even for those previously slated for cancellation.

But Susman quickly clarified what was really happening.

"It sounds so altruistic," he said, "but this wasn't voluntary. The Department of Insurance sent out a bulletin telling every insurer in the affected zip codes — and even surrounding zip codes — that they could not non-renew policies for 12 months."

In other words, this wasn't an act of goodwill — it was a mandatory moratorium under California's emergency insurance regulations.

The order also required carriers to reinstate any recently canceled policies at the same terms and price, "no questions asked." A few hours after that directive was expanded to cover additional zip codes, State Farm issued its public statement.

While the move brought short-term relief to homeowners, Susman cautioned that it's not a permanent fix. These moratoriums are stopgaps — temporary measures to prevent widespread coverage loss during a crisis.

As the flames from California's latest wildfire crisis continue to fade, a new kind of firestorm is emerging — one that burns through budgets, not forests. The cost of fire insurance is skyrocketing, and according to industry expert Karl Susman, this may only be the beginning of a long and painful recalibration of California's insurance market.

Appearing on CBS News, Susman discussed how the recent Los Angeles wildfires — particularly those devastating areas like Pacific Palisades — are reshaping the way insurance companies, regulators, and consumers share the burden of disaster recovery. His insights reveal a complex balancing act between market solvency, consumer affordability, and the urgent need to adapt to a world where catastrophic wildfires are no longer exceptions but expectations.

California's insurance market is being fundamentally redrawn by fire. With entire neighborhoods reduced to ashes in a single day, insurers are grappling with losses that can reach billions of dollars per season.

"This level of devastation — we're not meant to deal with it as humans," Susman said. "To be able to have a city wiped out in a day, it's almost biblical."

But while the emotional toll is incalculable, the financial impact is measurable — and unsustainable under the state's existing insurance framework. As wildfires become more frequent and severe, insurers are facing unprecedented claims while being limited by regulations under Proposition 103, which restrict their ability to raise rates to match rising risk.

That imbalance has forced many major carriers, including State Farm and Allstate, to stop writing or renewing homeowners' policies in wildfire-prone areas altogether. The result? Tens of thousands of Californians have turned to the California FAIR Plan, the state's insurer of last resort.

The California FAIR Plan was designed as a temporary solution for homeowners unable to find coverage in the private market. But as wildfires intensify, it has quietly become one of the state's largest insurers — and one of its most financially vulnerable.

A map shown during the CBS segment revealed that FAIR Plan enrollment has increased by over 250% in just one year in some areas. Governor Gavin Newsom even noted that his own father's home is covered under the plan.

"It's very expensive," the governor admitted. "And it's not great coverage."

Southern California is once again facing devastating wildfires — an all-too-familiar crisis that has displaced families, destroyed homes, and strained an already fragile insurance market. Beyond the smoke and flames, the financial aftershocks are spreading through California's housing and insurance systems, forcing homeowners, insurers, and regulators to confront hard truths about how risk is priced, shared, and managed.

In this week's Insurance Hour, host Karl Susman broke down what's happening behind the headlines: how the insurance system works in times of disaster, what protections homeowners still have, and why recent reforms might finally stabilize a volatile market. His analysis cuts through the confusion, offering clarity in a time of uncertainty.

The Southern California wildfires have burned through neighborhoods across Los Angeles, Ventura, and Orange counties, forcing more than 80,000 people to evacuate and leaving thousands of homes in ruins.

But as Susman emphasized, the fires' impact isn't just physical — it's economic. Each destroyed home represents hundreds of thousands of dollars in insured losses, and when multiplied across entire communities, the result is a multi-billion-dollar catastrophe that ripples across insurers, reinsurers, and consumers alike.

"This is a terrible tragedy," Susman said. "People are losing everything, and the insurance industry is once again being tested at its limits."

Wildfires are now the single largest source of catastrophic insurance losses in California, surpassing earthquakes and floods. But unlike earthquakes, wildfire losses hit year after year — eroding insurers' reserves and destabilizing the market.

Susman pointed to State Farm's earlier decision to stop renewing thousands of homeowners' policies in high-risk areas as a major factor in today's crisis.

"This fire came just months after State Farm non-renewed 1,626 policies in the Palisades area alone — the second-highest number of non-renewals in the entire state," he explained.

The timing couldn't be worse. Families already struggling to find coverage in an overheated insurance market now face potential total losses.

Susman added, however, that a statewide moratorium issued by the California Insurance Commissioner will offer temporary relief.

"For the next year, those non-renewals are frozen," Susman said. "That means if you were dropped because of fire risk, your carrier has to keep you covered while your community recovers."

California's wildfires are no longer seasonal anomalies — they are structural stress tests for one of the nation's most complex insurance ecosystems. Every year, as flames rage through forests and communities, they leave behind not only destruction but also deep uncertainty about who will pay to rebuild.

In a recent Insurance Hour segment, insurance expert Karl Susman dissected this crisis with clarity and urgency, explaining how the state's insurance system, government programs, and new regulatory changes are reshaping the path to recovery. His insights highlight both the peril and promise facing California's insurance market — and what homeowners can do to stay protected in an era of rising natural disaster risk.

California is once again confronting the devastating aftermath of widespread wildfires — blazes that have destroyed thousands of structures, displaced tens of thousands of residents, and strained an already fragile insurance system.

Susman underscored a critical point: these fires are not isolated events, but indicators of a structural imbalance between climate realities, insurance regulation, and market capacity.

"We're seeing more intensity, longer fire seasons, and higher rebuild costs," Susman noted. "It's not just about what's burning — it's about how the system responds afterward."

That "system" includes private insurance carriers, the California FAIR Plan (the state's insurer of last resort), federal agencies such as FEMA, and state-led reforms aimed at restoring market stability. Understanding how each piece fits together is essential for homeowners navigating post-disaster recovery.

When major insurers like State Farm, Allstate, and Farmers pull back from wildfire-prone regions, the California FAIR Plan becomes the fallback for many homeowners.

But as Susman explained, the FAIR Plan is often misunderstood — both in how it operates and how it's funded.

"A lot of people think the FAIR Plan is a government bailout or taxpayer-funded program. It's not," Susman emphasized. "It's a privately funded pool created by law, and every admitted carrier in California participates in it."

In essence, the FAIR Plan acts as a shared insurance consortium, spreading wildfire risk among all admitted insurers in the state. Each company contributes based on its market share. This structure ensures that no single carrier bears the full weight of catastrophic losses.