When the Map Gets It Wrong: The Hidden Cost of FEMA's Flood Zone Mistakes

For many Californians, flood insurance is something you associate with coastal homes, mountain runoff, or rivers that overflow during a storm. But for some South Los Angeles homeowners, the cost of flood protection has arrived — even though the water hasn't.

In a recent KCAL 9 News investigation, residents of a quiet South LA neighborhood discovered they were suddenly required to carry flood insurance policies costing hundreds of dollars a year, despite having no history — or even risk — of flooding.

At the center of the issue is FEMA's flood map system, a decades-old federal tool that determines whether a property falls into a designated flood zone. That designation can automatically trigger a lender-mandated insurance requirement, even if homeowners — and local officials — question whether the risk actually exists.

1. A Flood Zone That Doesn't Make Sense

For homeowner Leslie Goodwin, the news came as a shock.

"I thought in my head, this has got to be a mistake," she told KCAL. "I'm not in the mountains. I'm not at the coastline. I'm not in the canyons. This is the middle of the city."

Yet, for the past three years, Goodwin has been paying for a flood insurance policy she didn't want — and doesn't believe she needs.

Her home sits inside a tiny blue square on FEMA's flood map, representing what the agency classifies as a "Special Flood Hazard Area" — meaning there's a 1% annual chance of flooding.

That 1% may sound small, but it's significant enough to trigger federal insurance mandates. Mortgage lenders are required to ensure that any property inside those blue zones carries flood coverage — even if the risk is localized to a few houses.

Zoom in on the map, and you'll see the oddity: Goodwin's small cluster of homes — maybe half a dozen — is blue. The rest of the surrounding neighborhood, shaded orange, is considered lower risk, with only a 0.2% annual flood probability.

To anyone who knows the area, the classification feels arbitrary.

2. "Nobody Could Tell Me Why"

Goodwin turned to local agencies for answers. She called FEMA. She called the City of Los Angeles Department of Building and Safety. She even reached out to her insurance agent — Karl Susman, a veteran independent broker who's been featured in several KCAL insurance reports.

"I actually contacted FEMA and I actually contacted the City of Los Angeles Building and Safety to try and find out specifically what was the cause," Susman explained. "And I'm sure this will come as a major shock to you — nobody could tell me."

FEMA eventually told KCAL that the area's classification was based on "topographical depressions"

"There's a Real Crunch": Why California's Home Insurance Market Is Breaking Down

California's homeowners are running into a crisis that's no longer limited to wildfire zones or rural areas — it's spreading everywhere.

In a revealing ABC 10 News report by Austin Grabish, insurance experts and property owners described what's being called a "real crunch" in the state's insurance market: shrinking availability, rising premiums, and growing anxiety about what happens next.

"In California right now, there's a real crunch for insurance availability," said longtime insurance broker Karl Susman.

The latest blow? Foremost Insurance, a division of Farmers, announced it would stop writing new home insurance policies in California starting immediately — another domino in a chain of exits and pullbacks that have left millions scrambling for coverage.

1. Another Insurer Bows Out

As of this week, Foremost will no longer offer new home insurance policies in California.

The company joins a growing list of carriers — including State Farm, Allstate, and Liberty Mutual — that have either frozen new business, withdrawn certain product lines, or begun non-renewing existing customers.

"Another insurance company is pulling back from California," Grabish reported. "Starting today, Foremost will no longer take new business in the state."

For homeowners, that means one less option in an already constricted market. For insurance professionals, it signals a deeper, systemic issue.

"We called every single one of them," Susman said of the state's supposedly active carriers. "And there were less than a dozen that were writing without restrictions."

2. The View From the Ground: "They Didn't Even Want to Talk to Me"

For property owners like Tim Gordon in Oceanside, the crisis isn't abstract — it's personal and immediate.

Gordon, who owns a few rental properties, was stunned when his insurer abruptly canceled his commercial policy covering two buildings.

"It was stressful," Gordon said. "I started calling other vendors as a backup — and then I realized just how ugly it was."

When he mentioned one of his property ZIP codes — Ramona, a region with higher wildfire exposure — potential insurers hung up or refused to quote.

"The minute I shared a Ramona ZIP code, they didn't even want to discuss it with me."

After weeks of searching, Gordon finally found coverage — but at

California's Insurance Crossroads: Why Premiums Are Rising and What Drivers Can Do About It

From homeowners losing coverage to motorists facing soaring auto insurance bills, California's insurance landscape is shifting faster than many residents can keep up with.

In a recent segment on CBS KCAL's On Your Side, reporter Christine Lazar sat down with independent insurance agent Karl Susman to discuss the state of the industry, the reasons behind the price hikes, and — perhaps most importantly — what consumers can actually do to save money in the middle of this turbulent market.

The discussion sheds light on a crucial truth: while inflation and disasters play a role, California's regulatory framework — particularly the rate-approval process under the Department of Insurance — also contributes to the market's volatility.

1. When Everything Costs More, So Does Insurance

Lazar opened the segment with the question everyone's been asking: "Is it going to get better, or is it going to get worse?"

Susman didn't sugarcoat it.

"Everyone knows at this point, everything is costing more money," he said. "Gas prices, food prices, going to the movies — everything is up. So our insurance premiums are definitely in line with what's happening as far as watching the price of everything increase."

It's not just inflation, though. Rising repair costs, more expensive vehicles, and higher claim payouts are compounding the problem.

• Auto parts and labor costs are at record highs.

• Accident frequency has rebounded since the pandemic, and many insurers report higher claim severity — meaning bigger losses per claim.

• Weather-related losses (floods, wildfires, and hail) have increased insurers' overall exposure.

All of that adds up to a challenging environment for both insurers and consumers — and in California, where insurers can't simply adjust rates freely, the system can take months or years to catch up to those realities.

2. California's Rate-Approval Bottleneck

Under Proposition 103, California insurers must receive explicit approval from the Department of Insurance (CDI) before changing their rates.

This consumer protection law, passed in 1988, ensures that any rate increase is justified by "black and white" actuarial data — numbers that prove a company needs the adjustment to remain solvent.

In theory, this safeguards the public from arbitrary or excessive pricing. In practice, however, it can also lead to long delays that leave insurers operating at a loss duri ...

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 ...

California's Catastrophe Insurance Overhaul: Can New Regulations Save the State's Failing Homeowners Market?

California's insurance market has reached a critical turning point. In a state defined by its beauty and its volatility—where wildfires, earthquakes, and floods have become part of the yearly rhythm—the home insurance system is showing signs of collapse. As major insurers like State Farm and Allstate pull back from writing new homeowner policies, state officials are stepping in with sweeping reforms that could reshape how risk is measured, priced, and shared.

Last week, Insurance Commissioner Ricardo Lara announced a comprehensive plan to rescue California's "collapsing" insurance market. The proposal—currently under public review—marks the most significant regulatory shift in decades. It would allow insurers, for the first time, to factor the increasing wildfire risk from climate change into their rate filings.

To many, this is a long-overdue modernization. To others, it raises concerns about affordability, access, and fairness. The state's insurance crisis is not just about numbers—it's about balancing science, public policy, and the urgent realities of a warming planet.

The Immediate Crisis: Why Insurers Are Leaving

For years, California has been caught in a vicious cycle: as climate-driven disasters increase, so do insurance losses. Insurers are paying out more in claims than they can recover through premiums, yet state law limits how much—and how quickly—they can raise rates.

Two key factors have worsened the problem:

1. Proposition 103, a 1988 voter initiative, requires insurers to obtain state approval before raising rates. It also prohibits the use of predictive "catastrophe models" that estimate future risks based on weather patterns, vegetation, and climate projections.

2. Rising reinsurance costs—that is, the cost of insurance that insurance companies themselves buy—are not allowed to be fully reflected in consumer premiums under current regulations.

As a result, insurers are operating in a system where they cannot charge enough to cover mounting risks. Faced with this imbalance, major carriers began to pause new policy sales, especially in high-risk wildfire zones.

This left many Californians scrambling for coverage, with some forced onto the state's FAIR Plan, a last-resort insurance pool that provides limited, high-cost protection.

Commissioner Lara's new proposal aims to reverse that exodus—by making the system more responsive to real-world risks while requiring insurers to recommit to the California market.

Catastrophe Modeling: The Science Behind the Change

At the heart of the proposed overhaul lies a technical but transformative concept: catastr ...

California's Home Insurance Crisis: What Homeowners Need to Know About the Fair Plan, Court Rulings, and the Search for Coverage

Buying a home in California has always been difficult—but keeping it insured has become a whole new challenge.
In recent years, thousands of homeowners across the state have opened their renewal notices only to find devastating news: their insurer is pulling out, non-renewing, or simply refusing to write new business in their ZIP code.

A recent investigative report from NBC Los Angeles, featuring insurance expert Karl Susman and consumer advocate Amy Bach from United Policyholders, highlights the growing crisis—and the limited options many Californians now face.

This is more than a temporary disruption. It's a structural shift in the state's property insurance landscape, one that's forcing regulators, insurers, and consumers alike to rethink how coverage works in a high-risk environment.

The Growing Coverage Crisis: "I Thought It Would Be Easier"

For homeowners like Allison Rosenberg of Marina del Rey, the problem isn't just higher premiums—it's finding anyone willing to insure her home at all.

After more than a decade with the same insurer, she received a notice stating that her coverage would not be renewed. The reason? She had filed three claims in ten years—hardly excessive, but enough to make her "too risky" in today's volatile insurance market.

"I hit the wall pretty quickly," Rosenberg told NBC. "With no takers, I had to turn to the California FAIR Plan."

Her experience is becoming alarmingly common. Insurers across the state have drastically reduced their exposure, particularly in wildfire-prone or coastal regions. As a result, tens of thousands of homeowners who once had multiple carrier options now find themselves with only one: the California FAIR Plan, the state's so-called insurer of last resort.

The FAIR Plan: From Safety Net to Main Option

The California FAIR Plan was established decades ago to ensure basic access to fire insurance for residents who couldn't obtain coverage elsewhere. It's funded collectively by all licensed insurers in the state, functioning as a shared safety net.

But that safety net is being stretched to its limit.

Between 2018 and 2022, FAIR Plan policies more than doubled, jumping to over 341,000 by late 2023. According to data obtained by NBC's I-Team, roughly 40% of those homeowners rely on the FAIR Plan as their only form of coverage.

That's a dangerous position to be in, explains Amy Bach of United Policyholders. "The FAIR Plan only covers fire," she notes. "If your toilet overflows, if someone breaks in, if your washing machine hose bursts—you get nothing."

In other ...

Understanding Auto Insurance Claims in California's Hard Market: When (and When Not) to File

When someone breaks into your car or damages it, your first instinct might be to call your insurance company right away. After all, that's what insurance is for — right?

But in today's volatile insurance market, that decision isn't always so simple.

In a recent segment from ABC 10 Sacramento, an insurance expert explained how auto insurance claims — especially minor ones — can affect your long-term insurability and premiums, particularly as insurers scale back and re-evaluate their risk portfolios in California.

The discussion highlights a key truth that every driver should understand in 2024:
Not every loss is worth filing a claim for.

Here's a closer look at what this means, why it matters, and how to make smart decisions about when to involve your insurer.

1. When a Break-In Becomes a Comprehensive Claim

If someone breaks into your vehicle — for example, shattering a window or damaging the door — that's considered a comprehensive claim, not a collision claim.

Comprehensive coverage applies to incidents where your car is damaged by something other than a crash, such as:

• Theft or vandalism

• Fire or flood

• Falling objects

• Damage from animals

In the segment, the insurance expert clarified that such break-ins fall under "damage to your vehicle while not in motion."

The good news? In California, these claims are not chargeable — meaning your insurer cannot raise your rates simply because you filed a comprehensive claim for a break-in.

That protection stems from California's strict consumer regulations, which differentiate between at-fault and not-at-fault losses.

So, if your car is vandalized, you can typically file the claim without fear of an immediate premium increase.

However — and this is key — if the stolen property inside the car is personal (like your laptop or gym bag), that's another story.

2. Personal Property Theft Is Usually a Homeowners Claim

While your auto insurance covers physical damage to the car itself, it generally does not cover personal belongings inside the vehicle.

If your dry cleaning, purse, or electronics are stolen, you'll likely need to file a claim under your homeowners or renters insurance policy i ...

Liberty Mutual Pulls Business Owner Policies in California: What It Means for Small Businesses

California's insurance crisis is no longer confined to homeowners.

In yet another sign of deepening market strain, Liberty Mutual announced that it will stop offering its Business Owner's Policy (BOP) — a bundled commercial insurance product that covers small businesses — across the state this fall.

The decision, first reported by ABC 10 Sacramento's To The Point with Alex Bell, marks a major retreat by one of California's largest commercial carriers.

"Another insurance company is making changes," Bell reported. "Liberty Mutual sent a letter to agents and brokers saying that this fall, they'll no longer offer their bundled insurance products for businesses called BOP."

The change takes effect October 1, 2024, and by December, the company plans to non-renew its entire book of existing BOP policies — meaning thousands of small businesses will need to find new coverage before year's end.

1. What Liberty Mutual Is Cutting

Liberty Mutual's Business Owner's Policy (BOP) is a staple product for small and midsize enterprises. It combines property, liability, and business interruption coverage into one streamlined package.

The BOP is commonly used by:

• Small retail shops

• Professional offices

• Restaurants and cafes

• Service providers like salons, studios, and clinics

As Bell explained:

"These types of policies cover small office, retail, and restaurant spaces."

After October 1st, Liberty Mutual will stop writing new BOPs — and by December, existing ones will begin to non-renew.

"The real scary part," said an insurance expert interviewed by ABC 10, "is that they announced they're going to start non-renewing the entire book of business for that classification."

That means every policyholder under this category — even those with clean claims histories — will be dropped.

2. Why Liberty Mutual Says It's Leaving

In its letter to agents, Liberty Mutual cited California's "adverse market conditions" as the reason for the pullback.

The company, like many others, is struggling with:

California's Home Insurance Crossroads: Inside Commissioner Lara's "Sustainable Insurance Strategy"

California's homeowners insurance crisis has entered a defining moment — one that could determine whether the state's property market stabilizes or continues to spiral.

As ABC 10 Sacramento's Becca Habiger reported in a comprehensive interview with Insurance Commissioner Ricardo Lara, the state is facing unprecedented challenges in both the availability and affordability of homeowners coverage. Major carriers have paused or restricted new policies, premiums have surged, and the state's FAIR Plan — originally intended as a "last resort" — is becoming the only resort for many residents.

"Having an uninsurable state is not an option," Commissioner Lara said.

That's the driving philosophy behind Lara's new Sustainable Insurance Strategy, an ambitious reform effort that aims to modernize California's insurance market by updating its decades-old regulatory framework.

But with wildfire season intensifying and thousands of residents already priced out or dropped by their insurers, many homeowners — especially those in rural and high-risk zones — are asking: Will it work?

1. The Crisis at a Glance

In the past two years, most of California's largest insurers — including State Farm, Allstate, and Farmers — have either paused new business or withdrawn from entire ZIP codes.

Homeowners in regions like Tuolumne, El Dorado, and Butte counties have been hit hardest, seeing premiums double or triple.

"My payment has doubled, and I'm not making any more money," said Kathy Townsend, a Tuolumne County homeowner now on the FAIR Plan after being dropped twice.

Others have been non-renewed multiple times.

"We've been canceled at least five, possibly six times," said another homeowner. "The costs keep going up, and I don't know what folks are going to do. It's terrifying."

These stories underscore a troubling reality: homeowners who once had stable coverage are now living in financial uncertainty.

Even renters and small business owners are feeling the ripple effects as landlords pass along rising insurance costs.

"People right there on the margin now can't afford that house they've had for years," said Mark Dyken, who operates a homeless shelter in Tuolumne County. "Or their rent goes up because their landlord has to pay more."

2. What's Driving the Crisis

The causes are complex but interconnected:< ...

California Approves 20% Rate Hike for State Farm Home Insurance: What It Means for Homeowners

California's homeowners insurance crisis just entered a new phase.

In early 2024, State Farm, the state's largest property insurer, was granted permission to raise its homeowners insurance rates by an average of 20% — the first major increase since the company paused new policies in 2023. The decision, approved by the California Department of Insurance, sparked mixed reactions across the industry, pitting consumer advocates against regulators and insurers who insist the change is long overdue.

FOX KTVU's Tom Vacar broke down the numbers, interviewing experts on both sides — including independent insurance agent Karl Susman — to unpack what this means for California's strained insurance market.

1. The Numbers Behind the Rate Hike

The approved increase averages 20% statewide, but the real-world impact will vary dramatically.

As John Baker explained in the FOX report:

"Some may experience a very tiny rate increase — 2, 3, or 5 percent — while those in higher-risk areas could receive a 50 percent increase, possibly even more."

That's because homeowners insurance rates are location-based, tied to factors like wildfire exposure, rebuild costs, local fire protection, and community-level mitigation.

In essence, your ZIP code — and sometimes even your street — determines your risk profile.

For many Californians living in the wildland-urban interface (WUI), that means steeper increases, while suburban and urban homeowners could see only modest adjustments.

2. Why State Farm Requested the Increase

According to the Department of Insurance, State Farm provided evidence that the increase was necessary to remain solvent in the state.

Independent agent Karl Susman, interviewed by FOX, put it plainly:

"State Farm proved to the Department of Insurance that it needed the increase."

California's unique regulatory system, governed by Proposition 103, requires insurers to justify every rate change. Unlike most states, carriers can't simply raise rates in response to inflation or reinsurance costs — they must demonstrate actuarial necessity.

The catch? The review process can take months or even years, leaving insurers unable to keep up with market realities.

"In California, we rank somewhere around the sixth or seventh least expensive state f ...