Storm Damage in California: What's Covered, What's Not, and How to Handle Claims the Right Way

After weeks of relentless rain and powerful winds, California homeowners are once again facing widespread storm damage. From flooded basements and downed trees to mudslides and roof leaks, many residents are asking the same urgent question: "Will my insurance cover this?"

In a February 2024 FOX KTVU interview, insurance expert Karl Susman, president of the Susman Insurance Agency, provided clear and practical guidance on what homeowners should do after a major storm — and what types of damage are (and aren't) typically covered under standard insurance policies.

His insights reveal both the complexity and the urgency of storm recovery in California's fragile insurance landscape.

When the Storm Hits: "Shock and Awe"

Even though forecasters had warned that strong storms were coming, Susman noted that the reality still catches people off guard.

"We knew this was coming," he said, "but when it's here, it's still shock and awe."

As atmospheric rivers drenched the state, homeowners faced a mix of water damage, flooding, and structural issues — all of which fall into very different insurance categories.

"We're seeing everything," Susman explained. "Water damage, flood damage, mudslides, downed trees, rain-driven water — you name it."

That's where the confusion starts. Because while "water damage" and "flood damage" may sound the same, they're treated very differently by insurers.

Understanding Coverage: Water vs. Flood vs. Mudslide

Susman broke down how to determine what's covered under a standard homeowners insurance policy — and what requires special coverage.

✅ Water Damage (Covered)

If rain enters your home from above, such as through a roof leak or wind-driven rain coming through windows, that's typically covered by a standard homeowners policy.

"If you have water entering from the roof, it's water coming down — that's usually covered," Susman said.

❌ Flood Damage (Not Covered Without Flood Insurance)

If water rises from the ground up, it's considered flood damage — and that's excluded from homeowners policies.

"When you're looking at water that's rising from the ground up, that's flood coverage," Susman explained. "You'd need a separate flood insurance policy for that."

Flood insurance is available through the National Flood Insurance Program (NFIP) or private carriers, but it must be purchased

Hail Damage and Your Car: What to Do, What's Covered, and How to Avoid Costly Mistakes

Hail storms can strike without warning, leaving behind a trail of dents, cracked windshields, and frustrated drivers. In early February 2024, Central Florida experienced one such storm, and local residents woke up to find their vehicles pockmarked with golf ball-sized hail.

While the damage might look cosmetic, hail can quickly become an expensive problem — especially if you're unsure how to handle insurance claims correctly. The good news? Most hail-related repairs are covered under comprehensive auto insurance. But as the FOX 35 Orlando segment "Getting Your Hail Damage Repaired" explained, there are several key steps to take (and a few to avoid) to ensure you're protected.

Here's how to navigate hail damage the smart way — from inspection to claim to repair.

Step 1: Assess the Damage — Safely and Quickly

The first thing to do after a hailstorm is to inspect your vehicle, but only once it's safe to go outside.

"If there's damage from hail and the storm has stopped, remember, be safe first," the report emphasized.

Once conditions are clear, walk around your vehicle and take note of dents, cracked glass, and other signs of impact. Because hail often strikes unevenly, check all sides — including the roof, hood, and trunk.

Pro Tip: Document Everything Immediately

Today's smartphones make this process simple. Record a short video (5–10 seconds) showing your car and the hail still on the ground.

"Walk out there with your camera, take a video saying, 'Here's the damage, there's the hail on the ground,'" the segment advised. "That's just going to make things that much easier in case they even ask."

This quick step serves as valuable proof for your insurer, especially if there's any later dispute about when or how the damage occurred.

Step 2: Get a Professional Inspection — It's Usually Free

Even if the dents look minor, it's worth getting a professional opinion.

"Most body shops offer free inspections and hail damage estimates," FOX 35 noted.

That's because hail damage can be deceptive. Small dents may hide structural stress or paint cracks that worsen over time. Getting a certified body shop or paintless dent repair (PDR) specialist to evaluate your car ensures accurate cost estimates and documentation.

Reputable shops can also help you understand whether the damage is extensive enough to warrant a claim — and may even communicate directly with your insurance adjuster during the repair process.

Step 3: Review Your Auto Insurance Coverage

Before filing a c ...

How to File a Storm Damage Claim in California: Expert Tips from Karl Susman

California's recent series of powerful winter storms has left homeowners and drivers across the state dealing with flooded properties, fallen trees, and mudslides. As the rain keeps coming, many residents are now asking the same urgent question: "How do I file a claim — and what's actually covered?"

In a February 2024 NBC4 Los Angeles I-Team segment, investigative reporter Lolita Lopez spoke with insurance expert Karl Susman, president of the Susman Insurance Agency, to help Californians navigate this stressful process. With three decades of industry experience, Susman offered clear, practical advice on what steps to take, what to expect from your insurer, and how to avoid costly mistakes.

His guidance comes at a time when California's insurance system is under enormous strain — with record-breaking weather events colliding with a shrinking pool of insurers and rising premiums.

Let's break down the key lessons from this timely report.

1. Before the Storm: Prepare — and Stay Present

Even before damage occurs, Susman emphasized the importance of proactive preparation. Simple steps can prevent major losses when storms strike.

"If you haven't done so already," Susman advised, "turn off all sprinklers, park your car in your garage or under a carport, and keep your cell phone charged at all times."

It sounds basic, but these measures can make a world of difference. Sprinklers left running can worsen flooding. Vehicles parked outside risk damage from hail, falling branches, or debris. And a charged phone is your lifeline — not just for emergency alerts, but also for documenting damage if it occurs.

Susman also urged homeowners to check their insurance policies before disaster hits. Make sure your coverage is current, and review what perils are — and are not — included.

"What I'm telling everyone to do," he said, "is stay present, stay safe, and prepare as much as they can."

2. After the Damage: File Promptly and Be Patient

If your home or vehicle sustains storm damage, the first step is to contact your insurance company immediately.

Susman warned that with so many claims flooding in after major weather events, homeowners should expect longer-than-usual response times.

"What I would expect is people to potentially be on hold if you're filing a claim on the phone," he explained. "Try to file it online if you can. Be sure you get a claim number — and be prepared to wait a little bit because, again, there's a lot of claims coming in."

Having that claim number is crucial — it's your proof that you've officially reported t ...

Insurance Insights: Navigating Coverage Questions in an Uncertain Market

Insurance used to be simple: you paid a premium, filed a claim if disaster struck, and trusted your carrier to deliver on its promise. But in today's volatile market—marked by wildfires, floods, inflation, and mass non-renewals—understanding what's covered (and what's not) has become increasingly complicated.

In a recent segment of Insurance Hour, host Karl Susman tackled one of the most common frustrations facing consumers today: how to make sense of their insurance coverage when the rules, rates, and risks seem to change overnight. From homeowners and auto policies to life and renters coverage, Susman's insights offered clarity on how consumers can ask the right questions—and get real answers—before it's too late.

The Coverage Confusion Crisis

The insurance industry has long battled a communication problem. Policies are written in dense, technical language. Exclusions hide in the fine print. Renewal notices come with rate increases but little explanation.

As Susman explains, "People think they know what's in their policy—until something happens. Then they realize what they thought they had and what they actually have are two very different things."

California's ongoing insurance crisis has amplified this disconnect. Major carriers like State Farm, Allstate, and Farmers have stopped writing new homeowners policies in high-risk regions. Others are slashing renewals or raising rates by double digits. Consumers are left wondering: Am I covered?

Susman's advice is both simple and crucial:

"You can't control the market, but you can control how well you understand your coverage."

Start with the "What If" Questions

Every policyholder should start by asking a series of "What if" questions—because those are the questions that determine whether you'll be protected when disaster strikes. Susman encourages consumers to look beyond the basics and think in real-world scenarios.

• What if my home is damaged in a wildfire or flood?
  Many homeowners assume "fire insurance" means all natural disasters are covered. But flood and earthquake coverage are excluded from standard policies. You'll need separate policies or endorsements.

• What if I rent out my home?
  Short-term rentals through platforms like Airbnb often invalidate standard homeowners policies. You'll need a landlord or rental endorsement.

• What if someone ...

When Water Damage Strikes: What Homeowners Can Learn from One Couple's Costly Insurance Battle

A burst pipe. A flooded home. Months of waiting for reimbursement. For one California couple, what began as a home improvement project turned into a $120,000 financial nightmare — and a cautionary tale about how complicated insurance claims can become when disaster strikes.

In a February 2024 ABC 10 Team 10 Investigates report, homeowners Phil and Karen Wisnant of Vista shared how a single accident during an insulation job spiraled into months of stress, debt, and uncertainty. Their story highlights what many homeowners don't realize until it's too late: filing an insurance claim is rarely simple — especially when multiple parties are involved.

To help unpack the lessons from this case, ABC 10 turned to insurance expert Karl Susman, who explained what went wrong, what should have happened, and how other homeowners can avoid the same pitfalls.

The Accident: "It Was a Frantic Afternoon"

Last October, the Wisnants were out of state when they received a panicked call from Pro Service Insulation, a contractor performing attic work on their recently renovated home.

"He was frantic," Phil recalled. "He said, 'Can you tell me where the water shut-off is? One of the guys stepped on the fire sprinkler piping, and it's flooding the house.'"

Their Ring camera footage captured what happened next: water gushing from the ceiling at 100 pounds of pressure, soaking walls, furniture, and floors. The deluge caused ceilings to collapse and spread through nearly every room.

When they returned home, the damage was devastating. The couple estimates the flooding destroyed most of their flooring, drywall, and cherished personal belongings — with total repairs costing about $120,000.

The Insurance Maze: Who Pays When Contractors Cause the Damage?

The Wisnants quickly discovered that getting reimbursed for property damage isn't always straightforward — even when someone else is clearly at fault.

Because the flood was caused by a contractor's error, the couple filed a claim with AmTrust Financial, the insurance carrier for Pro Service Insulation. They hoped the company would reimburse them for repairs, temporary housing, and other expenses.

But months later, they're still waiting.

"We're spending borrowed money," Karen told ABC 10. "That's a very unsettling feeling."

The couple says AmTrust asked for a formal "demand letter" outlining how much they were seeking. Unsure of their final costs, they initially estimated the loss at $246,000. But as the months dragged on, and after paying contractors and living in temporary rentals ...

New Year, New Rules: How 2024 Insurance Reforms Are Changing the Game for California Homeowners

California homeowners have spent the past few years navigating one of the most turbulent insurance markets in the nation. Between record-setting wildfires, insurer withdrawals, and rising premiums, many consumers have felt trapped between financial strain and limited options.

But 2024 brings a glimmer of good news. A slate of new state regulations—introduced by the California Department of Insurance (CDI)—aims to strengthen consumer protections, speed up claims, and give homeowners more flexibility after disasters.

In a recent FOX KTVU segment, insurance expert Karl Susman, president of Susman Insurance Agency, joined anchor Alex Savidge to explain what these changes mean in practical terms. The discussion shed light on several key reforms that could make a real difference for policyholders recovering from wildfires or other declared disasters.

Let's break down these updates and explore how they fit into California's broader insurance landscape.

1. Homeowners Can Now Rebuild Elsewhere Without Penalty

One of the most significant regulatory updates for 2024 involves greater flexibility in rebuilding after a total loss.

Under previous insurance contract rules, if a home was destroyed—say, in a wildfire—and the owner chose not to rebuild on the same lot, the insurer could reduce or deny full payment of the policy benefit. Homeowners who wanted to relocate to a safer area or different community were effectively penalized for not rebuilding in the same spot.

Susman explained that the new regulation changes that:

"In the past, if your house burned down and you didn't want to rebuild in a high fire area, the contract penalized you. With this regulation in place, you're no longer penalized for moving elsewhere."

This means homeowners can now "cash out" their policy and apply those funds toward purchasing or rebuilding a home in a new location—without losing value due to restrictive wording in their insurance contract.

For many Californians living in repeated wildfire zones, this reform offers a sense of freedom and safety that wasn't possible before. It also aligns with the state's broader goal of risk reduction and managed retreat from high-hazard areas.

2. A 60-Day Grace Period for Premium Payments After a Disaster

Another consumer-friendly change addresses a simple but critical issue: how homeowners stay insured when disaster strikes.

Whenever the governor declares a state of emergency, affected homeowners now automatically receive a 60-day grace period to pay their insurance premiums.

"Think about it," Susman explained. "If there's a wildfire or flood, people ...

Saving Money on Auto Insurance: Navigating Rising Costs and Smart Strategies for Today's Drivers

Across the United States—and especially in California—drivers are asking the same question: Why is my auto insurance premium so high?

If you've opened your renewal notice lately, chances are you've felt the sting of rising rates. You're not alone. Auto insurance costs have been climbing steadily over the past few years, and in 2025, they've reached record levels. From inflation and advanced vehicle technology to distracted driving and higher medical costs, the list of culprits is long—and growing.

But understanding the why behind these increases can help you take control of what you can—your own policy choices and driving habits.

Let's break it all down: what's driving the surge in rates, and what smart steps you can take to save money on your auto insurance without compromising the coverage you need.

The Core Drivers Behind Rising Auto Insurance Costs 1. The Age and Experience Factor

Auto insurance has always been a numbers game, and one of the biggest predictors of claims is driver experience. Teen drivers and those under 25 pay significantly more because statistically, they get into more accidents. It's not a judgment—it's math.

As drivers gain experience and demonstrate a clean record, premiums tend to drop. But until that happens, expect higher rates early on. The key for young drivers is maintaining a spotless record—no tickets, no claims, and no risky driving behavior.

2. The Car You Drive Matters

Your vehicle's make, model, and age have a big impact on what you pay. Luxury cars, electric vehicles, and newer models with advanced technology are expensive to repair. A simple bumper replacement on a modern car can run into the thousands because of embedded sensors, cameras, and radar systems that require calibration.

In short, the fancier your car, the higher your potential repair cost—and your premium reflects that risk.

3. How and Where You Drive

Your mileage and driving habits also influence your insurance rate. A driver who commutes 50 miles a day is more exposed to potential accidents than someone who drives occasionally to the grocery store.

Urban areas also tend to have higher rates than rural ones. Dense traffic, frequent collisions, and theft rates all contribute to geographic premium variations. It may not feel fair, but it's based on aggregated claims data that insurers use to predict future risk.

4. Accidents, Tickets, and Claims History

Few things impact your premium as much as your driving record. A single speeding ticket or at-fault accident can trigger a rate increase of 20% or more, depending on the insurer and the state. Multiple violations compound the problem.

Insurers view claims as an indicator of future risk—so even minor incidents can ...

Navigating the Insurance and HR Maze: How Understanding Coverage Can Help You "Get That Job"

The job market has evolved dramatically in the last decade — not only in how people work, but also in what they expect from their employers. Today, benefits like health insurance, disability coverage, and long-term financial protection aren't perks; they're essentials.

In the program GET THAT JOB, host Sindy Thomas sat down with Karl Susman, insurance expert and founder of Susman Insurance Agency, to help job seekers and professionals understand how insurance connects to employment decisions, HR policies, and long-term stability.

What emerged from their discussion was more than a guide to benefits — it was a roadmap for navigating modern employment, where understanding coverage can be just as critical as negotiating salary.

1. The Overlap Between Employment and Insurance

When most people think about getting a job, they focus on the offer letter — title, pay, and responsibilities. But as Thomas and Susman emphasized, the benefits package is often what determines the true value of employment.

"Insurance isn't just protection for your car or your house," Susman said. "It's part of your compensation and your financial security. Too many people overlook that."

For HR professionals, benefits are a recruiting and retention tool. For employees, they're a form of long-term planning. And for both sides, misunderstanding insurance terms can lead to costly mistakes — whether it's overpaying for coverage or being underprotected during emergencies.

2. Health Insurance: The Cornerstone of Employment Benefits

Health coverage remains the single most sought-after workplace benefit, yet it's also one of the most misunderstood.

Susman explained that employer-sponsored health insurance operates differently from individual plans purchased through the marketplace. Group policies often offer better pricing due to risk pooling, but they can also be less flexible.

"The key question every employee should ask," Susman advised, "is not just 'What's covered?' but 'What are the limits, co-pays, and out-of-pocket maximums?' Those are what really affect your paycheck."

Thomas highlighted how confusion over terms like deductible, coinsurance, and HSA eligibility often leaves employees making uninformed decisions during open enrollment periods.

The takeaway: HR departments must do more than offer benefits — they must educate employees on how to use them effectively.

A well-informed workforce not only saves money but also reduces absenteeism and burnout, two major cost drivers for employers.

3. Disability and Life Insurance: Th ...

California Homeowners Face Sharp Rate Hikes as State Farm Raises Premiums

The new year has brought more bad news for California homeowners already reeling from a volatile insurance market. State Farm, the state's largest home insurer and the carrier for roughly one in five homes, has been granted regulatory approval for an average 20% rate increase — effective March 15, 2024.

But for many Californians, especially those living in wildfire-prone or high-risk areas, the increase won't stop at 20%. Consumer groups warn that certain communities could see premium spikes as high as 50% or more, further straining the already fragile balance between affordability and availability in the state's property insurance market.

As the debate intensifies between regulators, consumer advocates, and the insurance industry, this development underscores a central question: Can California stabilize its homeowners insurance market without pricing out its residents?

A Market Under Pressure

California's insurance crisis has been years in the making. The combination of climate-driven wildfires, rising reinsurance costs, and rigid regulatory limits has left insurers struggling to stay profitable in the nation's most disaster-prone state.

In 2023, several major carriers, including State Farm and Allstate, paused or restricted new homeowner policies altogether. This created a cascading effect, pushing thousands of residents into the state's FAIR Plan—the insurer of last resort—and sparking concern that private insurance could soon become unavailable for large swaths of the state.

Now, the 20% rate increase represents both a symptom and a potential turning point. State Farm argues that it's necessary to keep operations viable, while regulators insist they're balancing insurer solvency with consumer protection.

The Numbers: Who Will Be Hit Hardest?

According to FOX KTVU's John Baker, State Farm's new rates will take effect statewide beginning March 15, 2024. On average, homeowners will see a 20% increase, but the impact will vary significantly based on geographic risk.

Consumer advocacy group United Policyholders explained that homeowners in lower-risk areas—urban centers with less wildfire exposure—might see modest increases of 2–5%. But in higher-risk zones, especially rural or mountainous regions, rate hikes could soar 50% or more.

In short: your ZIP code determines your fate.

This risk-based pricing aligns with national trends, where insurers are moving toward data-driven, location-specific underwriting models. While more actuarially precise, such models also tend to penalize communities with inherent environmental risks, many of which have limited resources to adapt or relocate.

California's FAIR Plan Crisis: When the Insurer of Last Resort Becomes a Last-Minute Headache

In California, homeowners struggling to find fire insurance have long relied on the California FAIR Plan, the state's "insurer of last resort." It was designed as a safety net for those who couldn't get coverage from private insurers — typically because they live in high-risk areas like the wildland-urban interface.

But now, even that safety net is fraying. According to an ABC7 KGO investigation aired in December 2023, homeowners across the state are finding it increasingly difficult to obtain FAIR Plan coverage in a timely manner. The delays, technical glitches, and skyrocketing demand have turned what was once a fallback option into a logistical nightmare.

In short: Californians in wildfire zones are facing a new kind of insurance crisis — not just higher costs, but inaccessibility itself.

From Risk to Rejection: How We Got Here

The FAIR Plan (Fair Access to Insurance Requirements) was created in 1968 after devastating urban fires left thousands uninsured. Its purpose is simple: to provide basic fire insurance when traditional carriers won't.

Yet in today's era of climate-driven mega-disasters, "basic" no longer cuts it. Over the past five years, the state has seen major carriers — including State Farm, Allstate, and Farmers — stop writing or renewing policies in high-risk areas.

Homeowners like Mark and Alma O'Brien from Napa County have experienced this firsthand. Their ranch survived a grassfire, but their insurer didn't stick around afterward. "We went to probably three or four different carriers and got turned down," Alma said.

That left the FAIR Plan as their only option — and that's where the trouble began.

The FAIR Plan: Expensive, Limited, and Now Overwhelmed

The FAIR Plan is meant to be a temporary solution, not a replacement for standard homeowners insurance. It offers bare-bones coverage—typically only for fire damage—with higher deductibles and higher premiums. Homeowners must purchase a "Difference in Conditions" (DIC) policy separately to cover other perils like theft, water damage, or liability.

As consumer advocate Amy Bach, founder of United Policyholders, told ABC7:

"The FAIR Plan is getting a thousand applications a day. They switched over to a new computer platform, and there seem to be a lot of kinks. We're getting panicked emails from homeowners and agents saying, 'I can't reach anybody.'"

In short, the system is buckling under demand. The Department of Insurance reports that the FAIR Plan now serves more than 350,000 policies, a record number that continues to grow ...