Insurance Hour

As California faces yet another catastrophic wildfire season, thousands of families are dealing with the devastating loss of homes, communities, and stability. But beyond the flames lies a quieter crisis — an insurance market under severe strain, where coverage gaps, market withdrawals, and fraudulent practices add another layer of difficulty to recovery.

In a recent CBS News interview, insurance expert Karl Susman, president of Susman Insurance Services, joined from Southern California to explain how these overlapping crises are reshaping both the insurance landscape and the recovery process. His insights offered a clear-eyed look at what homeowners can expect as they file claims, seek temporary housing, and navigate the uncertain months ahead.

Susman began by describing the sheer magnitude of the current wildfire disaster, which he called "unprecedented 24 hours after it began."

With containment hovering around 11% for the Palisades Fire, the number of insurance claims was already skyrocketing.

"We already have claims being filed, but a lot of people haven't even been able to file yet because they're evacuated and don't know if their homes are still standing," Susman said. "We're going to see the number of claims continue to rise as time goes by."

Experts estimate that total wildfire-related claims from this season could reach tens of billions of dollars, a figure that reflects both the growing severity of natural disasters and the vulnerability of California's insurance system.

Even before the Palisades Fire ignited, California's insurance industry was already in turmoil.
For years, major carriers such as State Farm and Allstate have been scaling back their exposure, citing unmanageable wildfire risks and an outdated regulatory system under Proposition 103, which restricts rate adjustments.

"We saw people's insurance policies canceled even before this fire," the CBS anchor noted, setting the stage for Susman's analysis.

Susman acknowledged that the fires have only compounded an existing insurance crisis — one in which availability, affordability, and consumer confidence are all eroding.

However, there is some hope on the horizon: the Sustainable Insurance Strategy, enacted just weeks before the fi ...

California's insurance market is facing one of the most significant crises in its history. From wildfire losses to outdated regulations, insurers, agents, and homeowners are all grappling with a perfect storm of risk, cost, and uncertainty.

In a recent ABC 10 News report, insurance expert and broker Karl Susman broke down the forces driving the crisis—and the harsh realities facing Californians trying to protect their homes. His insights reveal a system at the breaking point, where insurers are retreating, consumers are overpaying, and agents are struggling to close deals.

The story begins with a trend that's been accelerating for years: major carriers withdrawing from high-risk zones.

"We've told you insurance carriers such as State Farm stopped covering thousands of people due to fire concerns," ABC 10's Austin Grabis reported.

Those concerns are not unfounded. Wildfires have become more destructive and frequent, fueled by climate change, drought, and urban sprawl. But insurers' retreat is also a product of regulatory stagnation.

Under California's Proposition 103, passed in 1988, insurers must obtain state approval for rate increases. The intent was to protect consumers from excessive premiums—but in today's volatile climate, it's had the opposite effect.

"Real estate agents couldn't close deals because clients couldn't get insurance," Susman recalled. "And some residents were paying tens of thousands of dollars for policies."

The bottleneck is simple: carriers can't charge rates that reflect real risk, so they limit or stop writing new business altogether. The result is a shrinking pool of insurers—and skyrocketing premiums for those still offering coverage.

The effects are rippling across California. Thousands of homeowners are finding themselves abruptly dropped by insurers with little notice.

One Ramona apartment building owner interviewed by ABC 10 discovered his policy had been non-renewed without warning, leaving him uninsured and unable to meet mortgage requirements.

Susman explained that this is part of a larger trend:

"Insurers are doing whatever they can to limit their risk and not renew clients. What you'll find is they'll say, 'That area is saturated,' or, 'That roof is too old.' I don't want to say they're making excuses—they're legitimate concerns—but carriers that are still writing are very far and few between."

For ...

California's relationship with wildfire is no longer seasonal — it's structural. With every passing year, the state faces blazes that grow in both intensity and economic devastation. The current wave of fires across regions like the Pacific Palisades is proving to be one of the most destructive yet, both in terms of property loss and insurance implications.

As insurance claims from these wildfires soar into the tens of billions of dollars, homeowners and insurers alike are grappling with questions about what comes next. How will this reshape California's insurance market? Can homeowners in fire-prone areas still find coverage? And will rates continue to climb, or could new regulations actually stabilize the market?

To explore these questions, insurance expert Karl Sussman offers a rare dual perspective: one rooted in decades of experience within the industry and the other shaped by firsthand exposure to the risks Californians face every fire season.

Sussman's assessment of the current fires is blunt: "We're already at a place where we've seen more total losses than we've ever seen from any type of fire before." At just 8% containment after three days, the Palisades fire alone has already produced an unprecedented number of claims — and more are expected as damage assessments continue.

These large-scale losses send shockwaves through the insurance sector. When insurers face payouts in the billions, the financial pressure inevitably trickles down to policyholders in the form of higher premiums, reduced availability, and stricter underwriting standards.

But despite the challenges, Sussman emphasizes that insurers are preparing to "buckle down and start doing what they've been paid to do — pay those claims." This underscores a key point often overlooked in the public debate: while insurers may tighten their risk exposure, the system still functions to fulfill its primary obligation — helping communities recover.

California's insurance market is at an inflection point. Over the past four years, seven of the state's top twelve insurers have either reduced their exposure or halted new business altogether in wildfire-prone areas. Among them, State Farm stands out for its sweeping non-renewals — including 1,626 homeowners' policies in the Palisades alone. That neighborhood, Sussman notes, was the second most affected area in the state by non-renewals.

This mass exodus left ...

As California continues to face one of its most destructive wildfire seasons in history, insurance experts are finding themselves on both sides of the crisis — advising clients by day and evacuating their own homes by night. One of them is Karl Sussman, a Los Angeles–based insurance broker who was recently forced to evacuate from the Pacific Palisades, one of the areas hardest hit by ongoing wildfires.

Sussman's experience provides not only a personal glimpse into the chaos of evacuation but also a professional perspective on the rapidly evolving insurance landscape in California. As he and his family found safety amid the flames, the very system he works within was being tested by unprecedented losses, rising premiums, and changing state regulations.

When interviewed during the crisis, Sussman began not with market analysis, but with gratitude: his family was safe, together, and that was what truly mattered. "Everything else will find a way to work itself out," he said. It was a human reminder that behind the staggering statistics of wildfire destruction are families — some of them professionals who understand the complexities of insurance better than anyone else.

But that human perspective quickly transitions to a professional reality check. Seven of California's top twelve insurance companies have reduced or cut their coverage in the state over the last four years. For communities like the Palisades, which have long been considered at high fire risk, that retreat has left homeowners scrambling.

Sussman recalls that State Farm non-renewed roughly 1,626 homeowners' policies in the Palisades area alone, making it one of the largest single-region withdrawals in recent memory. "Those people had to find coverage somewhere else," he noted. "They either obtained coverage in the private sector — which was very challenging — or they went with the California FAIR Plan."

The FAIR Plan, designed as an insurer of last resort, has become a lifeline for thousands of Californians. But it's also a symptom of a deeper problem: the traditional insurance market no longer finds many parts of California insurable under existing models.

For many Californians, obtaining fire coverage is no longer a matter of simply shopping around for quotes. It's now a process of risk mitigation and compliance with increasingly strict insurer requirements.

Sussman described the new normal: "Most insurance companies will give guidelines — or mandates, really — that say, 'If you want to keep your policy, you must make your home less likely to burn.'" This includes measures such as:

• Clearing brush and vegetation within a certain perimeter ...

California's worsening wildfire seasons have left more than just scorched earth behind — they've set the state's insurance market ablaze. As devastating fires continue to destroy homes and businesses across Los Angeles County and beyond, the financial fallout for both insurers and property owners has grown increasingly severe. The result? An evolving insurance crisis that's reshaping coverage availability, premium pricing, and even the role of government in stabilizing the market.

This post breaks down what's happening, why insurance companies are reassessing their exposure, and what policies like the California FAIR Plan mean for homeowners navigating this volatile landscape.

Every time a major wildfire devastates a California community, the economic impact ripples far beyond the burned zone. In the recent fires across Los Angeles County, millions of dollars in property damage have been reported. While insurance will help many recover, countless others face financial ruin — not necessarily because their properties burned, but because they've lost or been priced out of their insurance coverage.

Here's why: when insurers face catastrophic losses that exceed their yearly projections, they must reassess their risk models. That process often leads to higher premiums, reduced coverage options, or outright nonrenewal of policies in fire-prone areas. As Southern California insurance broker Michael Kiefer explains, "Insurance coverage could be in flux, and people could see their rates rise. Others may be dropped by their insurance company."

For homeowners, this instability has become the new normal. Neighborhoods that were once considered safe are now labeled "high-risk zones." Carriers, facing billions in potential losses, have started retreating from these areas altogether. And that has opened the door for the state's safety-net insurer: the California FAIR Plan.

The California FAIR Plan was never designed to be a permanent solution. Created decades ago as a last-resort insurer for those unable to find coverage elsewhere, it provides basic fire insurance — not the comprehensive protection of a traditional homeowners policy. Yet, as more private insurers withdraw from high-risk markets, the FAIR Plan's role has expanded dramatically.

Since September 2020, the number of FAIR Plan policies has surged by more than 120%, reflecting just how many Californians have been left without private coverage. Nowhere is this more evident than in high-value regions like the Pacific Palisades, which recently suffered massive losses. According to FAIR Plan data, the insurer's exposure in that single neighborhood — the amount it could be liable to pay in claims — now totals nearly $6 billion.

Thi ...

As wildfires once again sweep across Southern California, tens of thousands of residents are facing mandatory evacuations, shuttered businesses, and an uncertain future.
Even Universal Studios Hollywood had to close due to dangerous fire conditions and extreme winds — a stark reminder of just how far-reaching these disasters have become.

In an interview with NewsNation, insurance expert Karl Susman, President of Susman Insurance Services, joined live from the evacuation zone of the Palisades Fire to share firsthand insights into what homeowners and business owners need to know about wildfire insurance, claims, and preparedness.

The discussion revealed critical lessons for anyone living in a wildfire-prone area — lessons that can mean the difference between a smooth recovery and financial devastation.

Susman painted a sobering picture of California's current fire landscape:

"It's unbelievable how many fires we actually have going on," he said.
"We have the Palisades Fire, the Hearst Fire, the East Eaton Fire, the Woodley Fire — literally fires burning in almost every corner of Southern California."

These simultaneous events, he noted, make wildfire coverage more relevant than ever.
In a state where more than one in four homes is in a high or extreme wildfire risk zone, understanding how your insurance works — and when it doesn't — is essential.

Despite the growing chaos, Susman reassured viewers that fire coverage is included in most homeowners policies.

"The primary peril — literally the main part of the homeowners policy — is fire coverage," he explained.
"It would be very unusual to have a homeowners, condominium, or renters policy without it."

That means if your home or apartment is damaged or destroyed by fire, your standard property insurance will typically cover it, subject to deductibles and limits.
However, there's a catch: if you don't already have fire insurance before the fire starts, it's too late to add it.

One of the most important takeaways Susman shared was about policy freezes during active disasters.

As wildfires once again rage across California, forcing tens of thousands to evacuate, one of the most urgent questions facing homeowners isn't just "Is my home safe?"—it's "Will my insurance still cover me?"

In a NewsNation interview with Nichole Berlie, insurance expert Karl Susman—himself an evacuee of the Palisades fire—offered a candid, firsthand look into how California's insurance system is adapting to yet another catastrophic fire season.
The discussion centered around a decisive move by the California Department of Insurance (CDI): the temporary ban on insurance policy cancellations and non-renewals for residents in wildfire-affected zones.

This unprecedented step is meant to shield homeowners from losing coverage at the exact moment they need it most—but as Susman explained, the situation is far more complex than it appears.

The Palisades Fire, like many before it, has done more than destroy homes—it's exposed the fragility of California's insurance market.

"It's hard to imagine," Susman said. "We're on day three, and containment is still just 8%. The winds are relentless, the planes can't drop water safely, and the fire just keeps growing."

For years, major insurers such as State Farm, Allstate, and Farmers have cut coverage or paused new policies across fire-prone regions. In the Palisades alone, State Farm non-renewed roughly 1,626 homeowners policies, one of the largest withdrawals in the state.

Those homeowners faced two difficult choices:

• Find coverage in the private market, often at dramatically higher rates.

• Or turn to the California FAIR Plan, the state's insurer of last resort, which offers basic fire protection but limited coverage compared to a standard homeowners policy.

The underlying reality, Susman explained, is that insurance in California's high-risk zones has become "challenging, but not impossible."

With wildfires now a near-annual crisis, California Insurance Commissioner Ricardo Lara enacted emergency protections preventing insurers from canceling or non-renewing policies for residents in and around active fire zones.

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In this episode of Insurance Hour with host Karl Susman, the discussion dives into a wide range of insurance-related topics, featuring listener questions and Karl's insightful answers. Key topics covered include:

• Adding parents to a homeowner's insurance policy.
• Navigating wildfire-related insurance challenges.
• Obtaining coverage for unique properties like tiny homes and classic cars.
• Understanding the nuances of earthquake insurance.
• Addressing service animal insurance needs.
• Exploring cyber insurance for personal data security.
• Guidelines for insuring valuable jewelry, vacation rentals, and final expense policies.

Throughout the show, Karl combines practical advice with industry insights, empowering listeners to make informed decisions about their insurance needs.

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Insurance Hour is hosted by renowned insurance expert Karl Susman. Karl is a frequent guest on television stations such as ABC, CBS, Spectrum, The CW and FOX, and now his popular radio program is available online throughout California and world-wide.

Listeners can now tune in to Insurance Hour on great AM radio station KMET throughout the state of California.

In addition to traditional radio, Insurance Hour is available on several popular streaming platforms, ensuring that listeners can access the show at their convenience.

Audiences worldwide can now enjoy Insurance Hour at InsuranceHour.com, on YouTube, Amazon Music, Tuneln, Alexa, Apple Podcasts, and the iHeartRadio app.

For more information about "Insurance Hour" and its programming, please contact Lara Starr at [email protected]

In an age of unpredictable disasters — from raging wildfires and shattering earthquakes to invisible cyberattacks — the question of whether your insurance is truly enough has never been more urgent.
During a recent episode of Insurance Hour, host and insurance expert Karl Susman tackled this exact concern, offering practical answers to listener questions and unpacking how modern risks are redefining what it means to be properly insured in 2025.

What began as a Q&A session turned into an insightful masterclass on how ordinary policyholders can protect themselves in extraordinary times — and how today's "hard market" makes that more challenging than ever.

Susman opened the episode with a reminder: insurance today is far more complicated than it used to be.

"Insurance isn't simple anymore," he said. "It's more important than ever that you find a trusted advisor who can help you make sure you're getting the coverage you think you have — and the coverage you actually need."

Between climate-driven catastrophes, inflation-driven construction costs, and the rise of digital risks, policyholders are now facing gaps that didn't exist even a decade ago. Many assume they're fully covered — until disaster strikes.

That's why the modern insurance conversation can't just focus on price. It must focus on protection, understanding, and adaptability.

One of the first listener questions came from Gavin, a homeowner in a wildfire-prone region. His concern was one shared by many Californians:

"How can I be certain my policy won't drop us after a major wildfire or raise our rates?"

Susman acknowledged the anxiety is justified — after all, entire neighborhoods have faced non-renewals from insurers like State Farm and Allstate. However, the situation depends on whether the policyholder is covered by a private insurer or through the California FAIR Plan, the state's insurer of last resort.

"If you're already on the FAIR Plan," Susman explained, "you shouldn't worry about being dropped because that plan exists for exactly this reason — to cover people the private market won't."

But for private policies, renewal depends on material changes in risk exposure.

"If your area's risk profile changes — say, new fire maps or higher fuel load — insurers can reprice or even withdraw. They're not obligated to renew if the risk is no longer what they ...

As California's wildfires once again devastate neighborhoods from the Hollywood Hills to the Pacific Palisades, thousands of homeowners are facing a painful question: Will my insurance actually protect me when I need it most?

For many, the answer is uncertain. After years of insurer withdrawals, non-renewals, and skyrocketing rates, even long-time policyholders are discovering that their homes — and futures — may not be as secure as they thought.

In a recent interview on CBS's On Your Side, insurance expert and broker Karl Susman shared firsthand insights from the crisis zone, offering both a sobering look at the current insurance landscape and practical guidance for those navigating the claims process amid chaos.

The Southern California wildfires have already destroyed over a thousand structures, displaced tens of thousands of residents, and left entire communities blanketed in smoke and uncertainty.

For many, the trauma goes beyond property loss. As one resident tearfully told CBS:

"I know I'm not supposed to be here, but this is my parents' home. Insurance people decided to cancel their fire policy. We're going through this — and we have no fire insurance."

That heartbreaking reality reflects a growing crisis of insurance availability in California's high-risk regions. The state's complex regulatory system and escalating wildfire exposure have combined to push several major carriers — including State Farm and Allstate — to stop writing or renewing home insurance policies in many fire-prone areas.

Susman himself was forced to evacuate, along with his family. His approach was pragmatic:

"I go by the adage, 'Don't be brave.' The minute I saw the fire, I wasn't waiting for evacuation orders — I said, we're going. The most important thing is family. The rest, we'll deal with."

Even while displaced, Susman and his team have been working around the clock helping clients file claims, contact insurers, and navigate the complexities of post-fire recovery.

"We've had over 60 total losses to date," he shared. "That's a record for us — and it's still coming in. We have clients in the Palisades who don't even know the status of their homes yet."

That uncertainty underscores one of the most stressful aspects of wildfire recovery: homeowners often can't confirm losses for days or weeks ...