The Mountain Fire and California's Insurance Market: A Crisis Already Burning

When wildfires sweep across California, the damage is visible in burned landscapes, destroyed homes, and lost lives. But beneath the smoke lies another slow-burning crisis — the unraveling of California's property insurance market.

In a recent appearance on FOX's On Your Side, insurance expert Karl Susman joined journalist Christine Lozara to discuss the implications of the Mountain Fire, which destroyed more than 100 homes and scorched over a million acres.

The key takeaway? The fire itself may not "tip" the market into crisis — because the market is already there.

"We've already fallen over that edge," Susman explained. "The industry has been afraid of exactly this — not one big event, but the accumulation of many smaller ones that make California uninsurable under the current system."

1. California's Insurance Crisis Didn't Start with the Mountain Fire

To understand why another wildfire matters so much, it's important to look at what came before.

Between 2017 and 2018, catastrophic wildfires like the Camp, Tubbs, and Woolsey fires produced insured losses exceeding $25 billion. According to the Insurance Information Institute, insurers paid out twice as much in claims and expenses as they collected in premiums during that period.

That financial imbalance marked a turning point. Over the following years:

• Major insurers like State Farm, Allstate, Farmers, and USAA froze or restricted new business.

• The California FAIR Plan, originally designed as a last-resort insurer, ballooned to cover more than 350,000 homes.

• Regulators struggled to update pricing models, while homeowners watched premiums soar or policies vanish altogether.

By 2024, the system was stretched to breaking — and every new fire, no matter its size, added more stress.

"The Mountain Fire isn't an isolated event," Susman noted. "It's part of a pattern — and the market can't absorb it anymore."

2. Why One Fire Can Shake the Whole System

Even though the Mountain Fire may not be "historic" in scope, its impact reverberates throughout the state's insurance network.

Here's why:

a. Reinsurance Costs Soar

Insurers buy reinsurance — essentially insurance for insurance companies — to protect themselves from catastrophi ...

In this episode of Insurance Hour, hosted by Karl Susman, the focus revolves around practical tips and strategies for lowering insurance costs. The episode kicks off with listener questions about managing high premiums for new drivers, including strategies like utilizing good student discounts and clarifying vehicle usage. Karl dives into the differences between term life and whole life insurance and explores renter’s insurance, explaining why tenants need their own coverage despite landlords having policies on the building.

The conversation extends into areas like pet insurance, health insurance options post-employment, and umbrella policies, providing listeners with clarity on these nuanced topics. Karl also discusses boat insurance, mold damage, travel insurance, and whether older vehicles require full coverage. The show emphasizes consulting with insurance professionals for customized advice, especially when policies vary based on state regulations. Throughout, Karl keeps the tone informative and approachable, making complex insurance concepts accessible to listeners.

Wanna text us?

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]

1. The Truth About Auto Insurance Pricing

Car insurance is one of the most widely purchased — and misunderstood — forms of coverage. According to Susman, the key to lowering your premiums is knowing what insurers really look at when setting rates.

Your driving record matters most — but not forever.

Speeding tickets, DUIs, and at-fault accidents can cause rate hikes of 20–100%, but they don't last forever. In most states, moving violations fall off your record after three years, and accidents after five.

"The biggest mistake people make," Susman explained, "is not checking their record and asking their agent to rerun quotes once violations drop off."

Credit and insurance scores matter more than you think.

Insurers use an "insurance score," which includes elements of your credit history — not to punish you, but because data shows people with better credit file fewer claims. Improving your credit score can directly lower your premiums.

Mileage and usage count, too.

If you're working from home or driving less, your insurer should know. Mileage is a major rating factor, and switching to a low-mileage or "usage-based" plan (where you're charged per mile or driving behavior) can cut costs dramatically.

Pro tip:

Don't just call and say "I want cheaper insurance." Tell your agent exactly what's changed — fewer miles, better credit, new garage, improved safety features — and ask for a rate reevaluation.

2. Homeowners Insurance — The Silent Savings Opportunity

Homeowners insurance rates are skyrocketing, especially in California and other disaster-prone states. But Susman explained that many homeowners are paying for coverage they don't actually need — and missing discounts they're entitled to.

Re-evaluate replacement cost annually.

Your coverage should reflect what it costs to rebuild today, not what your home was worth when you bought it. Inflation, building codes, and material costs change yearly. If your policy hasn't been updated in several years, it's likely misaligned — either too high or too low.

Bundle smartly.

Bundling home and auto insurance often saves 10–25%, but only if both policies are competitive individually. Don't assume bundling is always best — have your agent quote both together and separately.

Mitigation discounts are real.

California's "Safer from Wildfires" program requires insurers to offer discounts for hardening your home — such as replacing roofs with fire-resistant materials, creating defensible space, or installing ember-resistant vents.

"You might already qualify for discounts you're not ...

Is Your Home Really Covered? Discover the Hidden Gaps in Your Policy

For most Californians, a home isn't just a place to live — it's the largest financial investment they'll ever make. Yet many homeowners don't fully understand how (or even if) that investment is truly protected. In a recent episode of Insurance Hour, host Karl Susman peeled back the layers of what's really covered under a standard homeowners insurance policy — and, more importantly, what isn't.

From occupancy requirements to misunderstood coverage limits, Susman highlighted how even well-meaning homeowners can find themselves dangerously underinsured. Here's what every homeowner should know before disaster strikes.

1. The Foundation of Homeowners Insurance

Homeowners insurance is often viewed as a single, simple product — something that covers "your home." But as Susman explained, it's actually a bundle of several distinct coverages, each protecting different components of your property and lifestyle.

Most policies include these core parts:

• Coverage A – Dwelling (Structure)

• Coverage B – Other Structures

• Coverage C – Personal Property

• Coverage D – Loss of Use (Additional Living Expenses)

• Coverage E – Personal Liability

• Coverage F – Medical Payments to Others

Each plays a unique role, and misunderstanding even one can create massive coverage gaps when you need protection most.

2. The Hidden Assumption: You Must Live in the Home

Susman started with one of the biggest misconceptions: occupancy.

"Homeowners insurance assumes the owner lives in the home," he emphasized.

This is not just a technicality — it's built into the contract. If you move out and rent the home to someone else, or leave it vacant for more than a few weeks, you may unknowingly void parts of your coverage.

Why? Because insurance is based on risk. A home that's occupied by its owner tends to be safer — maintenance is more consistent, response time to issues is faster, and risks like vandalism or unnoticed leaks are lower.

If the home becomes a rental, Airbnb, or short-term vacation property, the insurer considers that a completely different type of risk. The policy needs to be rewritten accordingly — usually as a

In this episode of "Insurance Hour," host Karl Susman interviews Amy Bach, the executive director of United Policyholders, about the challenges facing the insurance market, particularly in California. They discuss the growing difficulty for consumers to obtain home insurance, driven by climate change, wildfire risks, and other factors like technological advancements and market fluctuations. Amy outlines how non-renewals are becoming more common and why insurers are pulling out of high-risk areas. She also explores the role of the California Fair Plan, a fallback insurance option, and the uncertainty about its long-term sustainability. Both Karl and Amy emphasize the importance of mitigation steps homeowners can take to reduce fire risks and the value of working with informed agents. They conclude by discussing the future of insurance in California and nationwide, with a cautiously optimistic outlook for increased market availability, though affordability remains uncertain.

Wanna text us?

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]

The Collapse of California's Insurance Market: What's Really Happening — and How to Prepare

California's homeowners are facing a new kind of crisis — one that's not fueled by wildfires or earthquakes, but by the insurance industry itself. Premiums are skyrocketing. Policies are being canceled or not renewed. Carriers that once competed for business are now fleeing the market altogether.

To help make sense of this unraveling system, Insurance Hour host Karl Susman sat down with Amy Bach, Executive Director of United Policyholders, one of the country's most respected consumer insurance advocacy organizations.

Their conversation revealed something that every homeowner, broker, and policymaker should hear: the crisis is far bigger than California — and the old rules of private insurance may no longer apply.

1. An "Unprecedented" Crisis — and Why No One Is Immune

Bach didn't mince words:

"Everyone uses the same phrase — we've never seen anything like this."

For more than 30 years, Bach has been a voice for insurance fairness, helping consumers recover after wildfires, floods, and disasters. But even with that perspective, she describes today's market as "unprecedented."

California's private insurance system — built on competition between carriers — is breaking down. Where homeowners once had a choice of insurers, many now find no one willing to write a policy at all.

And it's spreading.

"It's like a virus," Bach said. "Florida got it first. Then California. Now Colorado, Iowa, Georgia, Pennsylvania — nearly every state is seeing markets that no longer look like they used to."

This isn't just about wildfires or state politics. It's a structural problem across the national insurance system.

2. The Perfect Storm Behind the Collapse

Bach and Susman agreed: there's no single culprit. The crisis is the result of a perfect storm of overlapping forces that have made traditional risk modeling obsolete.

Climate Change and Catastrophe Risk

California's wildfire losses are massive. The Camp Fire, Thomas Fire, and Woolsey Fire together destroyed more than 25,000 structures and caused tens of billions in damage. Drought conditions — fueled by climate change — have left 120 million dead trees along the Sierra Nevada, a tinderbox for future fires.

Technology and Risk Scoring

Modern insurers rely on sophisticated data analytics, satellite imagery, and drone mapping to identify high-risk properties — and many simply walk away from those risks.

Why Your Insurance Claim Was Denied — and How to Fight Back

When you file an insurance claim, you expect your policy to deliver on its promise: financial help when you need it most. Yet every year, thousands of policyholders are stunned to discover their claims are delayed, underpaid, or denied outright.

In a recent episode of Insurance Hour, host Karl Susman walked listeners through the most common reasons claims get rejected and what consumers can do to challenge a denial. Drawing on decades of experience in California's volatile insurance market, Susman broke down the realities behind "full coverage," how carriers evaluate losses, and what recourse you have when something goes wrong.

1. Understanding Why Claims Are Denied

Before you can fight a denial, you have to understand why it happened. Most denials fall into just a few predictable categories:

a. Coverage Gaps or Exclusions

Policies are built around specific "covered perils." Fire, theft, or collision may be covered, but wear and tear, flooding, or mechanical failure usually aren't.

"Insurance covers sudden and accidental events," Susman explained. "It doesn't pay for things that break down over time."

b. Policy Lapses or Non-Payment

If a premium was missed—even by a few days—a claim can be refused. California law requires insurers to send notices before cancellation, but those notices are often ignored or lost.

c. Misrepresentation or Missing Information

Failing to disclose prior losses, rideshare activity, or business use of a vehicle can lead to a denial later.

"Honesty up front saves you a nightmare later," Susman warned.

d. Poor Documentation

Many homeowners and drivers simply don't provide enough evidence. Adjusters need photos, police reports, receipts, or witness statements to confirm a loss.

2. The Myth of "Full Coverage"

One of the biggest misconceptions Susman tackled was the phrase "full coverage."

"There is no such thing," he said flatly. "When people say 'full coverage,' they usually mean they bought every optional add-on their agent offered—but that still doesn't cover everything."

For auto insurance, "full coverage" typically means liability, collision, and comprehensive. What it doesn't include are:

• Gap coverage if you still owe more than the car's value

• Renta ...

5 Hidden Gaps in Your Insurance Policy — And How to Protect Yourself Before It's Too Late

You've got home insurance. You've got car insurance. Maybe even life insurance. You feel covered — safe. But as insurance expert Karl Susman warned in a recent episode of Insurance Hour, what most people don't realize is that their coverage isn't nearly as complete as they think.

"Most people believe they have full coverage," Susman said. "But the truth is, nobody really does. There are gaps — big ones — and if you don't know what they are before disaster strikes, you could lose everything."

These "hidden gaps" aren't obscure fine-print tricks. They're common oversights — the kind that quietly drain homeowners and drivers of tens of thousands of dollars every year.

Let's uncover the five biggest insurance blind spots you probably don't know about — and what you can do right now to close them.

1. The Personal Property Payout Trap

Your home insurance policy promises to replace your belongings after a fire, burglary, or disaster. But what kind of replacement are we talking about?

Most homeowners assume "replacement" means getting back exactly what they lost — a new TV for a destroyed one, or a new couch for the old. But that's not always the case.

There are two very different kinds of coverage at play:

• Actual Cash Value (ACV) – reimburses you for the depreciated value of your items. That ten-year-old sofa? It's worth pennies on paper.

• Replacement Cost Value (RCV) – covers the cost to replace your items with brand-new equivalents at current prices.

"If your policy pays out actual cash value," Susman explained, "you're in for a rude awakening. You'll get a check for what your items are worth now — not what it costs to replace them."

How to fix it:
Check your policy declarations page or ask your agent whether your personal property is insured for replacement cost or actual cash value. If it's ACV, upgrade it immediately — the cost difference is small, but the protection difference is enormous.

2. The "Sewer Backup" and Water Damage Loophole

Water is one of the most common (and expensive) causes of home damage — but it's also one of the least understood areas of coverage.

A standard homeowners policy does not automatically cover water backup or overflow damage — such as when a sump pump fails, or a city sewer line backs up into your home.

The Shocking Truth About Insurance You Never Knew: Expert Insights with Clebe Best

When most people think about insurance, they think of forms, fine print, and monthly premiums — a necessary evil, not a profession of passion. But according to industry veteran Clebe Best, Vice President of the Independent Insurance Agents and Brokers of Arizona (IIABAZ), that perception misses the real story.

"Insurance isn't boring," Best told host Karl Susman on Insurance Hour. "It's a profession built on helping people — we're selling a promise. And when you deliver on that promise, it feels incredible."

That "promise" — the idea that insurance is a mutual trust, not just a transaction — was at the heart of this enlightening conversation. Together, Best and Susman unpacked what it really means to be an independent agent, why consumers misunderstand "full coverage," how AI is reshaping the business, and why choosing the right broker can be the difference between financial safety and disaster.

From the Bay Area to the Desert: A Career Built on Trust

Clebe Best didn't set out to join the insurance world. After graduating from UC Santa Barbara in the 1970s, he — like many of his generation — stumbled into the business through a family friend. But what started as a job at Continental Insurance quickly became a lifelong calling.

Best went on to work for AIG, serve as a marketing rep for Arizona and Nevada, and eventually found his own independent agency in Scottsdale, Arizona, which he has run for over 25 years.

His perspective bridges every side of the business: underwriting, marketing, and direct client advocacy. And in today's turbulent market, that experience gives him a rare, 360-degree view of both consumer needs and carrier constraints.

What Is an Independent Insurance Agent — and Why It Matters

In an era of apps, online quotes, and direct-to-consumer platforms, it's easy to forget that independent insurance agents still play a critical role in the system.

Unlike captive agents (who represent a single carrier) or direct providers (like those offering quotes online), independent agents and brokers represent the customer first — not the company.

"We're like the realtors of the insurance world," Best explained. "We're not tied to one brand. We work for the insured, not the insurer."

That independence allows agents to compare multiple companies, coverage types, and premium structures — tailoring policies around each client's risk profile and financial situation.

Why "Selling a Promise" Defines the Industry

Both Susman and Best returned several times to the idea that insurance is fundamentally about trust.

You don't buy a physical product; you buy a

The Liability Insurance Fallout: California's Hidden Crisis Beneath the Home Insurance Meltdown

For months, headlines have focused on California's collapsing homeowners' insurance market — insurers pulling out, premiums skyrocketing, and homeowners forced into the state's bare-bones FAIR Plan. But an emerging story shows how deep the crisis really runs: Californians are now struggling to find even basic liability coverage.

In a recent CBS News segment, investigative reporter Christine Lazar spotlighted a Woodland Hills couple whose story perfectly captures the growing strain. After a massive storm in early 2023 toppled a 150-foot tree onto their hillside home, their private insurer dropped them — leaving them with fire-only coverage under the FAIR Plan and no liability protection for ongoing risks.

As Insurance Hour host Karl Susman later explained, this is not an isolated case — it's a warning sign. Liability coverage, once a given, is now the next casualty of California's insurance collapse.

The Case That Shocked Viewers: When Insurance Vanishes Mid-Recovery

For Kevin Mojirati and his husband, life on their steep hillside property in Woodland Hills has become a daily exercise in anxiety.

In February 2023, a fierce winter storm uprooted a towering eucalyptus tree that crashed through their only access stairway — splintering steps, tearing through the deck, and flipping sections into the air.

"When the tree fell, it broke every single one of the steps and flipped one of the sections up into the air," Mojirati said.

They filed a claim, expecting repairs to start within weeks. Instead, their insurer dropped their policy, citing the damaged structure and ongoing repairs as reasons for non-renewal.

They turned to the California FAIR Plan, but quickly discovered a devastating limitation: the FAIR Plan only covers fire damage, not liability or other perils.

When they tried to secure a separate liability policy, insurers refused — one carrier reportedly sent an inspector, took pictures, and declined to quote coverage due to "construction activity."

For nearly two years, the couple has lived with makeshift wooden steps — unstable, temporary, and dangerous. Yet without liability insurance, even hiring a contractor poses legal risks, since an injury on-site could bankrupt them.

"Every day, when we walk up and down, we just think — what if something happens?" they told CBS.

Liability Insurance: The Silent Cornerstone of Home Protection

Most homeowners understand the importance of fire or hazard insurance, but few realize that