Insurance Hour

California's Home Insurance Crisis: What the CBS "Phone Bank" Revealed About Consumer Frustration — and Power

When CBS News Los Angeles hosted a live homeowners insurance phone bank, the response was overwhelming.

Within minutes of going live, the newsroom's phones lit up — and they didn't stop ringing for hours. Homeowners from every corner of Southern California called in with the same question, in different forms:

"Why is my insurance so expensive?"
"Why was I dropped?"
"Who can I talk to when my claim goes nowhere?"

The event, led by consumer reporter Christine Lazar and joined by industry experts like Karl Susman, exposed what has become one of California's most pressing consumer issues: a system that's leaving homeowners feeling powerless — and yet, as Susman reminded callers, they have more leverage than they realize.

1. The Call Volume Speaks for Itself

Lazar described the scene as "phones ringing off the hook." Hundreds of residents flooded the lines between 3:30 p.m. and 6:30 p.m., seeking help with everything from non-renewals and rate hikes to claim disputes with the California FAIR Plan — the state's insurer of last resort.

For many, it was the first time they'd had the chance to speak directly with an expert who could explain their options.

"We're hearing from so many people who have insurance-related questions," Lazar said live on air. "A lot of them are wondering: How can I afford insurance? What can I do about my fire coverage?"

Behind the phones sat a small group of industry professionals — including independent agent and insurance analyst Karl Susman, who has become a familiar face for Southern Californians navigating today's insurance turmoil.

2. The Common Thread: Frustration and Confusion

When asked what themes he was hearing from callers, Susman didn't hesitate:

"It seems like one of the more common calls tends to be that people are having multiple adjusters assigned," he explained. "They start out with one, they do some work, and then get assigned another — and sometimes even another one. I've seen people who've had five adjusters."

That revolving-door experience, he said, is traumatic and frustrating for policyholders already dealing with loss. Each new adjuster means retelling the same story, re-sending documents, and often facing different interpretations of what the policy covers.

"That's not normal, and that's not okay," Susman emphasized.

His advice: if you're experiencing multiple adjuster ...

California's Home Insurance Hotline: What the CBS/KCAL Special Revealed About the State's Coverage Crisis

When CBS/KCAL News Los Angeles opened a special homeowners insurance hotline in June 2025, the phones began ringing before the broadcast even started — and they didn't stop all evening.

Producers expected a busy hour. Instead, they got a vivid picture of a crisis that has reached every corner of California: homeowners unable to afford coverage, wildfire victims waiting months for payouts, and retirees paying more in insurance premiums than in mortgage payments.

"How am I going to afford my insurance?" one caller asked. "I'm paying more for insurance than I do for my house note."

That single question — repeated dozens of times — captured the mood of the event. What began as a simple public service segment quickly evolved into a real-time snapshot of California's insurance affordability emergency.

1. The Phones Were "Ringing Off the Hook"

Consumer reporter Christine Lazar hosted the hotline, joined by a panel of insurance experts including Karl Susman, independent broker and analyst who has become one of the most recognizable voices in California's insurance reform conversation.

As cameras rolled, viewers could hear the nonstop clatter of ringing phones in the background.

"You can hear it — the phones are ringing off the hook," Lazar said during the live segment. "We've compiled this team of experts to answer your calls. If they don't have the answer, they'll point you in the right direction. The goal is to give people the knowledge and power they need so they can push back if they feel they've been taken advantage of."

That simple mission — giving people the power to push back — has become a rallying cry in California's struggling insurance market.

2. When Your Premium Doubles (or Triples) Overnight

One of the most telling conversations Lazar highlighted came from a call Susman had just completed. The caller, an older homeowner, said her annual premium had risen from $1,500 to $3,000 to $4,500 within just a few years.

"She was concerned," Lazar told viewers. "She asked, 'What's it going to be next year?'"

Susman had a straightforward but powerful piece of advice:

"Shop around — and treat it like you're looking for a new doctor," he said. "You want someone good, someone who knows what they're doing. Find an independent broker who can give you options."

For consumers overwhelmed by rate increases, this might sound simple — but Susman emphasized that choosing the right representative matters just as much as choosing the right policy.

"There ...

California's Home Insurance Hotline: What CBS/KCAL's "Home Insurance Week" Revealed About a System Under Stress

California's homeowners insurance crisis has finally reached prime time — literally.

When CBS/KCAL News Los Angeles launched its "Home Insurance Week" coverage with a live homeowners insurance hotline on June 3, 2025, the phones began ringing before the broadcast even started — and they didn't stop all evening.

Producers expected a busy hour. Instead, they got a real-time portrait of a system stretched thin: homeowners unable to afford premiums, wildfire victims struggling through endless claims, and retirees paying more for insurance than for their mortgage.

1. The Phones Were "Ringing Off the Hook"

As anchors announced the hotline — 818-531-9292 — reporter Christine Lazar stood inside the bustling newsroom surrounded by phones, binders, and industry experts fielding call after call.

"Our phone lines have been open since 3:30," Lazar told viewers. "We're hearing from so many people who have insurance-related questions — a lot of them wondering, 'How can I afford insurance? What can I do about my fire claim?'"

Among the experts answering phones was Karl Susman, an independent insurance broker and educator who has spent years helping Californians navigate a rapidly changing insurance landscape.

"You can hear it — the phones are ringing off the hook," Lazar said. "The goal tonight is to give people the knowledge and power they need so they can push back if they feel they've been taken advantage of."

That phrase — knowledge and power — became the unspoken theme of the night.

2. "That's Not Normal, and That's Not Okay"

When Lazar asked Susman what themes he was hearing most from callers, his answer was immediate — and alarming.

"It seems like one of the more common calls tends to be that people are having multiple adjusters assigned," he explained. "They start out with one, they do some work, and then get assigned another — and sometimes even another one."

Susman went on to describe one homeowner who had been passed between five adjusters during a single claim process.

"If people are having three, four, five, six adjusters, that can be very traumatic and frustrating," he said. "They should definitely complain, ask for a supervisor. And if they're still not getting satisfaction, then go to the Department of Insurance and say, 'Hey, I'm getting three, four, five adjusters.' I had somebody that had five adjusters. That's not normal, and that's not okay."

That moment resonated with thousands watchi ...

Understanding State Farm's Emergency Rate Hike: What It Means for California's Home Insurance Market

When California's largest insurer, State Farm, announced it would implement an emergency rate hike for homeowners policies, it sent ripples through an already unstable insurance market. The move — a 17% temporary increase granted ahead of the company's pending request for a larger, permanent 30% rate hike — highlights both the economic and regulatory pressures reshaping insurance in the state.

Insurance expert Karl Susman, in a recent broadcast discussion, explained why the rate hike is not just about profits but about solvency, sustainability, and the long-delayed modernization of California's insurance system.

This article unpacks what's behind State Farm's emergency rate approval, what it signals for other insurers and policyholders, and how it ties into the state's broader regulatory crossroads.

1. A Market at the Breaking Point

California's insurance market has been described as being in a "state of paralysis." Since 2022, more than a dozen major insurers — including State Farm, Allstate, Farmers, and USAA — have either paused writing new homeowner policies or withdrawn from entire regions.

Their reasons are consistent:

• Wildfire exposure is rising, with 2024 marking some of the most destructive and costly fire seasons in recent memory.

• Construction and labor costs have skyrocketed, making claims far more expensive.

• Inflation and reinsurance premiums have eroded profit margins.

• And most critically, Proposition 103, California's 1988 voter initiative regulating insurance rates, continues to delay or deny necessary rate adjustments.

"State Farm isn't raising rates because they want to," Susman explained. "They're doing it because they have to. The system has tied their hands for too long, and now it's breaking."

2. What Is an Emergency Rate Hike?

Under California law, insurers typically must file a rate increase request through the Department of Insurance, which reviews the proposal under Proposition 103. The process involves extensive documentation, actuarial justification, and public commentary — and it can take over a year to complete.

However, when insurers face imminent financial instability, they may apply for an emergency rate increase to prevent insolvency or market withdrawal. ...

California's FAIR Plan Is Running Out of Money — What It Means for Homeowners and the Future of the Insurance Market

California's insurance safety net is fraying.

The California FAIR Plan, the state's insurer of last resort, is facing a financial emergency that could affect nearly every homeowner in the state—not just those living in wildfire zones.

At a recent oversight hearing before the Assembly Insurance Committee, FAIR Plan President Victoria Roach gave lawmakers a sobering update: the Plan is running out of money.

"We don't have a lot of money," Roach said bluntly, summarizing a crisis that's been building for years. "Our estimate is that we're going to pay close to $4 billion total when all is said and done."

Those payouts stem primarily from the Palisades and Eaton Fires, two disasters that hit Southern California earlier this year and have now pushed the FAIR Plan to the edge of insolvency.

A System Under Strain

The California FAIR Plan (short for Fair Access to Insurance Requirements Plan) was never meant to be a major player in the state's property insurance market. Established in 1968 after a wave of urban unrest made private insurers reluctant to write fire coverage in inner cities, it was designed as a temporary last resort—a safety valve for people who truly couldn't find insurance anywhere else.

But as private carriers retreat from California due to wildfire losses, inflation, and regulatory gridlock, the FAIR Plan has quietly ballooned. In just the last few years, its policy count has more than doubled, surpassing 400,000 homeowners.

Each new policy represents a household that couldn't find coverage elsewhere. And now, the system built for rare emergencies has become the default for entire communities.

"They were one catastrophe away from financial crisis," said insurance expert Karl Susman, host of The Insurance Hour. "Unfortunately, that catastrophe took place on January 7th."

That "one catastrophe" was the Palisades Fire, followed closely by the Eaton Fire—two events that generated more than 5,500 insurance claims, half of which were total losses.

As of May 2025, the FAIR Plan had already paid $2.9 billion in claims and expects the final total to approach $4 billion.

And because the FAIR Plan isn't backed by taxpayer dollars, the money has to come from somewhere else.

How the FAIR Plan Really Works

The FAIR Plan isn't a state agency—it's an industry pool< ...

California's Wildfire Belt Faces a New Threat: Soaring Insurance Premiums

For years, Californians in wildfire-prone regions have learned to live with the flames. Now, they're learning to live with something else—skyrocketing insurance costs.

In late May 2025, the California Department of Insurance approved a historic emergency rate increase for the state's largest property insurer, State Farm, allowing it to raise premiums starting June 1, 2025.

The increases are steep:

• 17% for homeowners,

• 15% for renters and condo owners, and

• 38% for landlords and rental properties.

It's the first time California has ever fast-tracked an emergency insurance rate hike—a move regulators say was necessary to keep the company solvent following devastating wildfire losses.

But for homeowners in Northern California's fire country, the decision is sparking new fears about affordability, coverage stability, and the future of homeownership in high-risk zones.

Living on the Edge: When Insurance Meets Fire

In places like Placer County, where the 2021 River Fire tore through neighborhoods and burned dozens of homes, residents are still rebuilding their lives—and now, their insurance budgets.

One homeowner, Liz Porter, told local news how her home was destroyed and later rebuilt thanks to help from California's FAIR Plan, the state's insurer of last resort. Afterward, she managed to secure coverage from State Farm, one of the few private insurers still writing policies in her area.

"From a coverage standpoint, we have a lot more protection with State Farm for a bit less than what we would be paying on the FAIR Plan," Porter said.

But that fragile balance is shifting fast. Her premiums went up last year, and now, with the new rate hike, they'll rise again.

"It's not sustainable," she said.

Porter's story illustrates the tension facing many homeowners: choosing between affordable but limited FAIR Plan coverage and comprehensive private insurance that's becoming increasingly expensive—or unavailable.

Why the Emergency Hike Was Approved

According to filings reviewed by the Department of Insurance, State Farm faced a sharp financial dec ...

State Farm's Emergency Rate Hike: What It Means for California Homeowners, Renters, and the Future of the Insurance Market

California's homeowners just got hit with another jolt—this time from the nation's largest property insurer, State Farm.

Following approval from California's Department of Insurance, State Farm has been granted emergency authorization to raise rates between 15% and 38%, depending on the type of property insured. Homeowners will see about a 17% increase, renters and condo owners about 15%, and rental property owners a staggering 38% hike.

The decision, announced after State Farm's substantial wildfire-related losses, marks a watershed moment in California's already turbulent insurance market. It not only highlights the financial strain insurers are facing in the state but also raises deeper questions about sustainability, consumer protection, and the future of coverage availability.

Understanding the Emergency Rate Increase

As insurance expert Karl Susman explained in an interview from Sacramento, this move was not unexpected.

"There was no question that State Farm is in a dire financial position right now," Susman said. "They had actually asked for a 30% rate increase prior to the wildfires. So you can only imagine what their books were looking like after that."

After reviewing the data, an administrative law judge found that State Farm's losses justified the request. The company's financial filings showed severe strain following catastrophic wildfire payouts, which have cost over $3.5 billion in claims to date.

The Department of Insurance subsequently approved the emergency rate filing, allowing the company to raise rates immediately upon policy renewal after June 1, 2025.

What Makes This a "Special" Case

Normally, insurers seeking rate increases must go through California's Proposition 103 process—a lengthy, data-intensive review often taking months or even years. However, under a specific provision in the state's insurance code, carriers can request an "emergency rate adjustment" if they can demonstrate financial hardship severe enough to threaten their ability to operate.

That's exactly what State Farm did.

Susman clarified:

"This isn't your typical rate increase. This is a line in the insurance code where a carrier says, 'We need this immediately, or we won't be able to stay in business here.'"

The emergency authorization allows State Farm to collect higher premiums now, pending a full hearing later this year—likely before October. During that hearing, the ...

What California's State Farm Rate Hike Really Means — And Why It's Not Over Yet

California homeowners are facing another rate shock.

In late June 2024, a judge and the state's insurance commissioner approved a 17% statewide rate increase for State Farm's homeowners policies, marking one of the most significant insurance decisions in recent years.

The approval comes despite strong objections from consumer advocates and wildfire victims, who argue that the company has struggled to handle claims and shouldn't be rewarded with higher rates.

But regulators and industry experts say the increase was financially necessary to keep the company solvent — and that the decision is only temporary, pending a full hearing this fall.

As CBS's Christine Lazar reported on the On Your Side segment, "This doesn't just affect those who live in the fire-prone areas. This is going to be statewide."

1. The Headline Numbers

Under the ruling, State Farm was granted:

• +17% increase for homeowners insurance policies statewide
• +15% for condo and renters policies
• +38% for rental property coverage

The increases affect all California policyholders, regardless of where they live — from wildfire-exposed mountain communities to suburban Los Angeles and coastal cities.

The rate hike follows months of financial turbulence for State Farm's California subsidiary, State Farm General Insurance Company, which has already:

• Stopped writing new homeowners policies (since May 2023)
• Non-renewed tens of thousands of policies (announced earlier in 2024)
• Filed for multiple rate increases since late 2023

2. Why Did Regulators Approve the Increase?

To answer that question, CBS turned to insurance expert Karl Susman, who attended the hearing in Sacramento.

 

"The judge approved it because he looked at all the documentation," Susman explained. "There was a three-day hearing, and he found that the rate increase was justified financially — simple as that."

The insurance commissioner, he added, followed the judge's recommendation.

But this was not a blank check. Susman emphasized that this approval is temporary — more like a "mini-hearing" or "bridge decision" than a final ruling.

 

"Between now and October, there's going to be a full hearing," he said. "Yes, we get to do it all over again." 3. A Conditional Approval — With Strings Attached

The ruling included several major stipulations designed to protect consumers and ensure accountability.

Here's what they are:

🟢 1. Refunds May Be Required

If the upcoming full hearing determines that the rate hike was not financially justified, State Farm will be required to refund the increase — plus interest — to all policyholders.

That's an unusual safeguard and a clear signal that the commissioner is trying to balance solvency with consumer fairness.

🟢 2. No Non-Renewals During This Period

Until the October hearing, State Farm cannot issue new non-renewals for existing California policyholders. This prevents the company from raising rates and dropping customers simultaneously.

🟢 3. Immediate Capital Infusion

State Farm must also transfer $600 million from its national parent company into its California branch to "shore up" reserves and demonstrate financial stability.

 

"They have to bring in about $600 million in money from their parent company imme ...

State Farm Wins First-Ever Emergency Rate Hike in California: What It Means for Homeowners, Renters, and the Insurance Market

For millions of Californians insured with State Farm, change is coming—and it's going to be costly.

In a landmark decision, the California Department of Insurance (CDI) has approved State Farm's emergency request to raise rates, marking the first time in state history that such an "emergency rate increase" has been granted.

This unprecedented approval comes in the wake of the Los Angeles wildfires, which destroyed tens of thousands of homes and left the insurance giant facing more than $7 billion in claims.

While the rate hike aims to stabilize State Farm's financial condition, it also signals a deeper, systemic problem—one that experts say is reshaping California's entire property insurance market.

The First-Ever Emergency Rate Approval

The approval allows State Farm, California's largest property insurer, to increase rates beginning June 1, 2025:

• Homeowners: +17% on average

• Renters and condo owners: +15% on average

• Rental dwellings and investment properties: +38% on average

These figures are averages, meaning some policyholders may experience even higher increases depending on location, coverage type, and claim history.

The rate approval followed months of review, including an independent analysis, public hearings, and a ruling by an administrative law judge.

The judge's final report described the rate hike as:

"A fundamentally fair, adequate, and necessary measure, effectively functioning as a rescue mission to stabilize State Farm's financial condition while safeguarding policyholders."

That phrase—"rescue mission"—is no exaggeration.

Why State Farm Needed a "Rescue"

According to the company's filings, State Farm's California subsidiary faced a liquidity crisis following record wildfire losses. The company warned regulators that, without immediate relief, it risked insolvency within the state.

To underscore its urgency, State Farm made an extraordinary concession:

As part of the approved agreement, State Farm's national parent company will inject $400 million into its California operations to help shore up reserves and maintain claims-paying ability.

Insurance expert Karl Susman explaine ...

California's Insurance Commissioner Approves Major Rate Hikes for State Farm: What It Means for Homeowners, Renters, and the Market

California homeowners, renters, and landlords are about to feel the effects of one of the most significant insurance rate increases in recent memory. Following months of financial turbulence in the state's insurance market, Insurance Commissioner Ricardo Lara has approved an emergency rate hike for State Farm, impacting millions of policyholders across California.

The move comes amid continuing instability in the property insurance sector — a crisis driven by wildfire risk, reinsurance costs, and an outdated regulatory framework that many experts argue has left insurers unable to keep pace with economic and environmental realities.

1. A Crisis Reaches a Breaking Point

For months, industry observers and homeowners alike have watched as State Farm — the largest home insurer in California — grappled with mounting losses. After a devastating series of wildfires and years of regulatory delays in rate approvals, the company declared that its California subsidiary was financially strained.

The company's request for an emergency rate increase was first submitted following the January wildfires in the Pacific Palisades and Altadena. Initially, State Farm asked for a 22% hike for homeowners, which was later adjusted to 17%, with separate increases of 15% for renters and condo owners and a substantial 38% for landlords.

An administrative law judge reviewed the filing and supported State Farm's request, calling it a necessary "rescue mission" to stabilize the company's finances while still protecting policyholders. Commissioner Lara then upheld that recommendation — underscoring the urgent need to preserve California's largest insurer at a time when other carriers continue to withdraw from the state.

2. Why This Matters: "Higher Risk, Higher Exposure Means Higher Premium"

Insurance expert Karl Susman, an independent agency owner in Los Angeles and host of The Insurance Hour, explained the approval in simple economic terms:

"What this boils down to is higher risk, higher exposure means higher premium."

Susman noted that even before this year's wildfires, State Farm had been seeking rate adjustments to account for growing exposure and inflation. California's combination of wildfire risk, rising construction costs, and strict rate-review rules has placed carriers in a bind — they can't raise premiums quickly enough to reflect their real costs.

As a result, Susman said, rate increases are not only expected but necessary:

"State Farm's price for landlord policies has always been way below the industry — below every other carrier by many factors. So I don't think it ...