KARL SUSMAN

ABC News Affiliate
California residents face an insurance crisis after the Los Angeles wildfires. ABC10 examines the home insurance industry and the recovery process.

California residents face an insurance crisis after the Los Angeles wildfires. ABC10 examines the home insurance industry and the recovery process.

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LA Wildfires: California Residents Face Insurance Crisis Amid Recovery | To The Point

Insurance Hour 10 hours ago

California’s plan that provides insurance to homeowners who can’t get private coverage needs $1 billion more to pay out claims related to the Los Angeles wildfires, the state Insurance Department said Tuesday. The FAIR Plan is an insurance pool that all the major private insurers pay into, and the plan then issues policies to people who can’t get private insurance because their properties are deemed too risky to insure. The plan, with high premiums and basic coverage, is designed as a temporary option until homeowners can find permanent coverage, but more Californians are relying on it than ever. There were more than 452,000 policies on the Fair Plan in 2024, more than double the number in 2020. The plan says it's expecting a loss of roughly $4 billion from the Eaton and Palisades Fires, which sparked Jan. 7, destroyed nearly 17,000 structures and killed at least 29 people. Roughly 4,700 claims have been filed as of this week, and the plan has already paid out more than $914 million. Under a FAIR Plan request approved by the state Tuesday, all insurers doing business in California will have to bear half the cost and can pass on the rest to all policyholders in the form of a one-time fee. Insurers can collect that cost in the next two years. The state Insurance Department must approve those costs. State officials didn't immediately have details on how large the fee would be. In approving the request, the state allowed the plan to send out notices and collect funding from marketplace insurers within 30 days. It’s the first time the Fair Plan has sought approval for additional money in more than 30 years, the department said. “I took this necessary consumer protection action with one goal in mind: the FAIR Plan must pay claims just like any other insurance company,” Insurance Commissioner Ricardo Lara said in a statement. “I reject those who are hoping for the failure of our insurance market by spreading fear and doubt," Lara said. "Wildfire survivors can’t cash ‘what ifs’ to pay for food and rent, but they can cash FAIR Plan checks.” The plan also expects to receive $1.45 billion in reinsurance to help pay out claims. It anticipates it will have roughly $400 million left by July. According to the plan, 45% of the wildfire claims filed so far are reported as total losses, 45% as partial losses and 10% as fair rental value. Insurers on Tuesday said they’re committed to helping the recovery process after the fires and that the ability to recoup some of the cost from ratepayers will prevent companies from leaving the state. “This is essential to prevent even greater strain on California’s already unbalanced insurance market and avoiding widespread policy cancellations that would jeopardize coverage for millions of Californians,” said Mark Sektnan of the American Property Casualty Insurance Association, the largest national trade association for home, auto and business insurers. But a consumer watchdog group, which opposed a rule that allows insurers to pass off costs to policyholders, said it will challenge the effort. "Consumer Watchdog is exploring every legal option to stop a bailout if any insurance company seeks to make consumers pay,” Carmen Balber, executive director of Consumer Watchdog, said in a statement. California is undergoing a yearslong effort to stabilize its insurance market after several major insurance companies either paused or restricted new business in the state in 2023, which pushed hundreds of thousands of homeowners onto the FAIR Plan. Wildfires are becoming more common and destructive in California due to climate change, and insurers say that’s making it difficult to truly price the risk on properties. Of the top 20 most destructive wildfires in state history, 15 have occurred since 2015, according to the California Department of Forestry and Fire Protection. The state now gives insurers more latitude to raise premiums in exchange for issuing more policies in high-risk areas. That includes regulations allowing insurers to consider climate change when setting their prices and allowing them pass on the costs of reinsurance to California consumers.

California’s plan that provides insurance to homeowners who can’t get private coverage needs $1 billion more to pay out claims related to the Los Angeles wildfires, the state Insurance Department said Tuesday.

The FAIR Plan is an insurance pool that all the major private insurers pay into, and the plan then issues policies to people who can’t get private insurance because their properties are deemed too risky to insure. The plan, with high premiums and basic coverage, is designed as a temporary option until homeowners can find permanent coverage, but more Californians are relying on it than ever. There were more than 452,000 policies on the Fair Plan in 2024, more than double the number in 2020.

The plan says it's expecting a loss of roughly $4 billion from the Eaton and Palisades Fires, which sparked Jan. 7, destroyed nearly 17,000 structures and killed at least 29 people. Roughly 4,700 claims have been filed as of this week, and the plan has already paid out more than $914 million.

Under a FAIR Plan request approved by the state Tuesday, all insurers doing business in California will have to bear half the cost and can pass on the rest to all policyholders in the form of a one-time fee. Insurers can collect that cost in the next two years. The state Insurance Department must approve those costs.

State officials didn't immediately have details on how large the fee would be. In approving the request, the state allowed the plan to send out notices and collect funding from marketplace insurers within 30 days.

It’s the first time the Fair Plan has sought approval for additional money in more than 30 years, the department said.

“I took this necessary consumer protection action with one goal in mind: the FAIR Plan must pay claims just like any other insurance company,” Insurance Commissioner Ricardo Lara said in a statement.

“I reject those who are hoping for the failure of our insurance market by spreading fear and doubt," Lara said. "Wildfire survivors can’t cash ‘what ifs’ to pay for food and rent, but they can cash FAIR Plan checks.”

The plan also expects to receive $1.45 billion in reinsurance to help pay out claims. It anticipates it will have roughly $400 million left by July.

According to the plan, 45% of the wildfire claims filed so far are reported as total losses, 45% as partial losses and 10% as fair rental value.

Insurers on Tuesday said they’re committed to helping the recovery process after the fires and that the ability to recoup some of the cost from ratepayers will prevent companies from leaving the state.



“This is essential to prevent even greater strain on California’s already unbalanced insurance market and avoiding widespread policy cancellations that would jeopardize coverage for millions of Californians,” said Mark Sektnan of the American Property Casualty Insurance Association, the largest national trade association for home, auto and business insurers.

But a consumer watchdog group, which opposed a rule that allows insurers to pass off costs to policyholders, said it will challenge the effort.

"Consumer Watchdog is exploring every legal option to stop a bailout if any insurance company seeks to make consumers pay,” Carmen Balber, executive director of Consumer Watchdog, said in a statement.

California is undergoing a yearslong effort to stabilize its insurance market after several major insurance companies either paused or restricted new business in the state in 2023, which pushed hundreds of thousands of homeowners onto the FAIR Plan. Wildfires are becoming more common and destructive in California due to climate change, and insurers say that’s making it difficult to truly price the risk on properties.

Of the top 20 most destructive wildfires in state history, 15 have occurred since 2015, according to the California Department of Forestry and Fire Protection.

The state now gives insurers more latitude to raise premiums in exchange for issuing more policies in high-risk areas. That includes regulations allowing insurers to consider climate change when setting their prices and allowing them pass on the costs of reinsurance to California consumers.

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California's insurer for people without private coverage needs $1 billion more for LA fires claims

Insurance Hour February 13, 2025 4:11 am

California insurance industry expert Karl Susman answers questions about State Farm’s request to increase rates following the LA Wildfires

This video is private.

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CA Insurance: State Farm asks to increase rates, Karl weighs in | "To The Point" Extended Interview

Insurance Hour February 6, 2025 6:00 pm

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The state of California recently implemented changes to its home insurance market when the wildfires in Los Angeles happened. Now, the largest insurer in the state is requesting a rate increase that would affect every one of its customers, and likely drive up the price of coverage for everyone else. It's been less than a month since wildfire decimated entire neighborhoods in Pacific Palisades and other communities in Los Angeles, and now the losses are being tabulated. State Farm General, California's largest insurer, said they have received more than 8,700 claims and already paid out more than a billion dollars from its nearly depleted cash reserves. In a letter to CA Insurance Commissioner Ricardo Lara, the company said, "Although reinsurance will assist us in paying what we owe to customers, the costs of these fires will further deplete capital from SFG...We are requesting that you take emergency action to help protect California's fragile insurance market by immediately approving interim rate increases on these filings, with rates to be effective May 1, 2025..." Karl Susman, a broker and industry expert, explained the situation. "The problem is the industry in California has pretty much been upside down for about a decade," he said. "And it's been slowly getting eroded because the prices have not been matching the exposure that we've had." Most people are surprised to learn that California has some of the cheapest home insurance in the country despite now ranking second for risk of loss. Homeowners here pay an average of $2,000 a year, while in Oklahoma it's three times that amount. So now, State Farm is requesting an average rate hike of 22 percent for homeowners, 15 percent for renters and condo owners and 38 percent for those owning rental properties, no matter where they are located in the state. The company said it needs the money to refill its capital reserve and said its credit rating has taken such a hit that State Farm insurance may no longer be accepted by some mortgage companies. "And this rate increase is really just the beginning of that," said Susman. "And I wouldn't say that it's backfilling premiums to be able to have the ability to pay claims, but it's really bringing the rate to where it should have been all along, considering the exposures that we have here. And now, we're going to start seeing all the carriers starting to do that. So, we're not in a situation when the next wildfire comes, where companies are running out of money and having to look to see how they're going to pay their claims." But Harvey Rosenfield, who wrote Prop 103, which regulates the state's insurance market, said he doesn't buy the hysteria. He said State Farm already had a request to the state for a 30 percent increase in June, well before the L.A. fires. "Now that the wildfires have happened," said Rosenfield, "State Farm is trying to take advantage of this tragedy to say that they need an immediate, emergency rate increase of 22 percent which could be, like, 3/4 of a billion dollars. We really don't know because they haven't justified that." Rosenfield said State Farm General, the company that insures properties in California, is claiming to be broke while its parent company, State Farm Mutual is worth hundreds of billions of dollars. "But State Farm wants to leverage — with the threat that it's the biggest company in the state and its financial condition is terrible — wants to leverage a bailout," he said. "This is forcing the public to capitalize, to fund, a private corporation that actually has access to resources of its parent company. And it's the parent company that should be bailing out State Farm, not the public." Who should bear the cost of the LA wildfires is up for debate, but there is no question that the risk of fire in California has grown in general. And it seems clear that insurers won't resume writing policies in the state until they are sure they won't be losing money by doing so. If Insurance Commissioner Lara approves the rate increases, which could happen in the next few days, they would go into effect when policies are renewed, as of May 1 of this year.

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State Farm emergency rate hike request raising alarm bells for some

Insurance Hour February 11, 2025 6:00 pm

State Farm, California's largest home insurance provider, has requested a 22% emergency rate increase from state regulators, citing financial strain following the recent Los Angeles wildfires. This request comes just six months after a pending 30% rate hike application, potentially impacting millions of California homeowners. The insurance giant, which covers approximately one in five California households, reported receiving 8,700 claims from last month's wildfires that destroyed 12,000 homes in the Los Angeles area. State Farm has already paid out over $1 billion to customers and said it expects this figure to rise significantly. Karl Susman, an independent insurance agency owner in Los Angeles, described the situation as "the Petri dish for what the industry has been fearful of for a long time." He told CBS 8, "If they can't get the appropriate premium for the risk if there is a large event, where is the money going to come from? And we are literally living that right now." State Farm defended its request in a statement, saying, "Insurance will cost more for customers in California going forward because the risk is greater in California. Immediate emergency interim approval of additional rate is essential to more closely align cost and risk and enable State Farm General to rebuild capital," adding that "We must appropriately match price to risk. That is foundational to how insurance works." However, consumer advocates have criticized the move. Carmen Balber, executive director of Consumer Watchdog, called the request "outrageous," adding, "State Farm is taking advantage of this tragedy to try to impose a massive rate hike on California homeowners, many of whom have been devastated by these fires." Balber also pointed out that State Farm's parent company has a $130 billion surplus, suggesting it should intervene rather than burdening California homeowners. "If State Farm is in financial straits, the parent company should be stepping in, not California homeowners, many of whom just suffered a tragedy," she told CBS 8. The California Insurance Commissioner's office acknowledged the seriousness of the situation, stating, "State Farm General's rate filings raise serious questions about its financial condition. To protect millions of California consumers and the integrity of our residential property insurance market, the Department will respond with urgency and transparency." There is currently no official timeline for when State Farm's rate application will be approved or denied.

State Farm, California's largest home insurance provider, has requested a 22% emergency rate increase from state regulators, citing financial strain following the recent Los Angeles wildfires.

This request comes just six months after a pending 30% rate hike application, potentially impacting millions of California homeowners.

The insurance giant, which covers approximately one in five California households, reported receiving 8,700 claims from last month's wildfires that destroyed 12,000 homes in the Los Angeles area. State Farm has already paid out over $1 billion to customers and said it expects this figure to rise significantly.

Karl Susman, an independent insurance agency owner in Los Angeles, described the situation as "the Petri dish for what the industry has been fearful of for a long time."

He told CBS 8, "If they can't get the appropriate premium for the risk if there is a large event, where is the money going to come from? And we are literally living that right now."

State Farm defended its request in a statement, saying, "Insurance will cost more for customers in California going forward because the risk is greater in California. Immediate emergency interim approval of additional rate is essential to more closely align cost and risk and enable State Farm General to rebuild capital," adding that "We must appropriately match price to risk. That is foundational to how insurance works."

However, consumer advocates have criticized the move. Carmen Balber, executive director of Consumer Watchdog, called the request "outrageous," adding, "State Farm is taking advantage of this tragedy to try to impose a massive rate hike on California homeowners, many of whom have been devastated by these fires."

Balber also pointed out that State Farm's parent company has a $130 billion surplus, suggesting it should intervene rather than burdening California homeowners.

"If State Farm is in financial straits, the parent company should be stepping in, not California homeowners, many of whom just suffered a tragedy," she told CBS 8.

The California Insurance Commissioner's office acknowledged the seriousness of the situation, stating, "State Farm General's rate filings raise serious questions about its financial condition. To protect millions of California consumers and the integrity of our residential property insurance market, the Department will respond with urgency and transparency."

There is currently no official timeline for when State Farm's rate application will be approved or denied.

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California homeowners face potential hikes as State Farm defends wildfire rate increase

Insurance Hour February 9, 2025 6:00 pm

After wildfires ravaged through the Los Angeles area, State Farm is seeking an emergency 22% rate increase. The company said the fires have put them in a difficult financial situation. State Farm has received nearly 9,000 claims so far.

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State Farm seeks emergency 22% rate increase following the devastating Los Angeles wildfires

Insurance Hour February 8, 2025 6:00 pm

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A month ago, the Palisades Fire ripped through Heather Burnett's apartment, destroying everything from furniture to jewelry. Burnett, moved from Lafayette to the Pacific Palisades just four months before the fire. But the horrific flames miraculously spared one thing-- her Buddha statue. "I believe it's a miracle," Burnett said. "That's my faith." A glimmer of hope standing despite never-ending rubble. Her Buddha was shielded from the flames by a piece of drywall that fell over it, but somehow didn't crush it. And now it's wedged between the wall and the balcony, making it nearly impossible to recover. She hopes she'll be able to retrieve the Buddha, but because her apartment was red tagged she's not sure how. "I'm hoping maybe there will be a way to get it," Burnett said. Burnett, who is currently a nanny, has dedicated her life to working with kids for the last 25 years. The Evacuation: The backstory: The morning the fire broke out, she was in her apartment with the young boy she was looking after. "I woke up to the sirens," Burnett said. "They didn't stop, so after a few minutes I was like something is going on." She looked outside and immediately evacuated. She grabbed her cat, Timmy, and the young boy and a few changes of clothes and her passport. She couldn't leave her cat and the boy in her car to go grab more belongings. "My first priority was this child, he is in my care, I have to get him out," Burnett said. Like so many, she lost everything. Moving On Dig deeper: With or without the Buddha, Burnett is hoping to move on, but like many Americans, is underinsured. Her daughter, Alexanne Date, started a GoFundMe to help Burnett start over. But she felt guilty accepting help. "It didn't feel right because I'm so much luckier than so many other people," Burnett said. "I did it because, as almost everyone, I'm under insured." Insurance Nightmare She is dealing with an insurance nightmare. Her policy was written by Spinnaker Insurance, a company recommended by her apartment complex. KTVU obtained a copy of her policy and had Karl Susman, an insurance expert, look over it. "At first glance it's not written the right way," Susman said. According to Susman, they left the liability limit down to the minimum when, for a dollar more a year, they could have covered her for up to $500,000. "You can tell this was not written by anyone who does this for a living," Susman said. Susman said renters' policies are significantly different from homeowners' policies and insurance companies can require people like Burnett to show proof of purchase for everything from electronics to a pair of socks. "Unfortunately, this consumer [Burnett] is not going to get any protection from the department of insurance when it comes to itemization," Susman said. "That is based on homeowners insurance and that is a renter policy." Burnett will likely have to itemize all of her belongings, unless Spinnaker Insurance decides to make an exception. Something major insurance companies like State Farm have already done.

A month ago, the Palisades Fire ripped through Heather Burnett's apartment, destroying everything from furniture to jewelry.

Burnett, moved from Lafayette to the Pacific Palisades just four months before the fire.

But the horrific flames miraculously spared one thing-- her Buddha statue.

"I believe it's a miracle," Burnett said. "That's my faith."

A glimmer of hope standing despite never-ending rubble.

Her Buddha was shielded from the flames by a piece of drywall that fell over it, but somehow didn't crush it. And now it's wedged between the wall and the balcony, making it nearly impossible to recover.

She hopes she'll be able to retrieve the Buddha, but because her apartment was red tagged she's not sure how.

"I'm hoping maybe there will be a way to get it," Burnett said.

Burnett, who is currently a nanny, has dedicated her life to working with kids for the last 25 years.


The Evacuation:

The backstory:

The morning the fire broke out, she was in her apartment with the young boy she was looking after.

"I woke up to the sirens," Burnett said. "They didn't stop, so after a few minutes I was like something is going on."

She looked outside and immediately evacuated.

She grabbed her cat, Timmy, and the young boy and a few changes of clothes and her passport.

She couldn't leave her cat and the boy in her car to go grab more belongings.

"My first priority was this child, he is in my care, I have to get him out," Burnett said.

Like so many, she lost everything.

Moving On

Dig deeper:

With or without the Buddha, Burnett is hoping to move on, but like many Americans, is underinsured.

Her daughter, Alexanne Date, started a GoFundMe to help Burnett start over.

But she felt guilty accepting help.

"It didn't feel right because I'm so much luckier than so many other people," Burnett said. "I did it because, as almost everyone, I'm under insured."
Insurance Nightmare

She is dealing with an insurance nightmare.

Her policy was written by Spinnaker Insurance, a company recommended by her apartment complex.

KTVU obtained a copy of her policy and had Karl Susman, an insurance expert, look over it.

"At first glance it's not written the right way," Susman said.

According to Susman, they left the liability limit down to the minimum when, for a dollar more a year, they could have covered her for up to $500,000.

"You can tell this was not written by anyone who does this for a living," Susman said.

Susman said renters' policies are significantly different from homeowners' policies and insurance companies can require people like Burnett to show proof of purchase for everything from electronics to a pair of socks.

"Unfortunately, this consumer [Burnett] is not going to get any protection from the department of insurance when it comes to itemization," Susman said. "That is based on homeowners insurance and that is a renter policy."

Burnett will likely have to itemize all of her belongings, unless Spinnaker Insurance decides to make an exception.

Something major insurance companies like State Farm have already done.

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California woman loses everything in Palisades Fire, except Buddha statue

Insurance Hour February 9, 2025 9:13 pm

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FOX LOCAL - State Farm Seeks Rate Hike

Insurance Hour February 10, 2025 6:00 pm

Summary The video covers an in-depth discussion on Fox 11 News between host Hal Eisner and insurance expert Karl Susman about the unprecedented wildfire crisis in Southern California and its insurance implications. The conversation addresses multiple aspects of the crisis, from immediate response to long-term implications. Karl Susman, owner of Susman Insurance Agency, provides detailed insights about insurance claims processes, potential scams, and the future of insurance in California. Key points include the importance of maintaining existing insurance policies, the role of the California Fair Plan, and the impact on both property and auto insurance rates. Susman notes that insurance companies are processing claims quickly, with some making electronic payments in the millions of dollars. He also warns about scammers targeting vulnerable fire victims and emphasizes the importance of home hardening measures, such as maintaining proper tree distance from homes (5 feet) and having fire-resistant roofs. The discussion reveals that Susman's agency alone is handling over 130 total loss claims from the recent fires. Highlights Initial Discussion of Wildfire Crisis and Insurance Response Host Hal Eisner introduces the unprecedented nature of the recent wildfires and their impact on Southern California communities. Karl Susman describes the unique challenges of this fire, noting its unusual growth pattern and zero containment. The segment includes emotional testimonials from fire victims expressing their shock and determination to rebuild. Susman emphasizes the importance of maintaining existing insurance policies and warns against shopping for new coverage during this period. Insurance Claims Process and Immediate Assistance Susman details the immediate steps fire victims should take, emphasizing the importance of filing claims promptly. He notes that insurance companies are making rapid electronic payments, some in the millions of dollars. The discussion covers both homeowner and renter's insurance claims, with Susman explaining that the California Department of Insurance has implemented protective measures for recently canceled policies in affected areas. Scams and Consumer Protection The segment warns about various scams targeting fire victims, including fraudulent rebuilding contracts and identity theft schemes. Susman advises against responding to unsolicited communications claiming to be from FEMA or other government agencies, emphasizing that legitimate assistance requires victims to initiate contact. Future of Insurance in California Discussion focuses on the broader implications for California's insurance market. Susman explains that despite high risk factors, California currently ranks around sixth for least expensive property insurance nationally. He predicts future rate structures will more accurately reflect risk levels, with higher-risk areas paying more and lower-risk areas potentially seeing reduced rates. Auto Insurance Challenges and Solutions The final segment addresses rising auto insurance costs, attributed to increased repair costs due to modern vehicle technology and ongoing supply chain issues from the pandemic. Susman provides practical tips for reducing insurance costs, including reviewing discounts and accurately reporting vehicle usage. He emphasizes the importance of home hardening measures like maintaining proper tree distance and installing fire-resistant roofs.

Summary

The video covers an in-depth discussion on Fox 11 News between host Hal Eisner and insurance expert Karl Susman about the unprecedented wildfire crisis in Southern California and its insurance implications. The conversation addresses multiple aspects of the crisis, from immediate response to long-term implications. Karl Susman, owner of Susman Insurance Agency, provides detailed insights about insurance claims processes, potential scams, and the future of insurance in California. Key points include the importance of maintaining existing insurance policies, the role of the California Fair Plan, and the impact on both property and auto insurance rates. Susman notes that insurance companies are processing claims quickly, with some making electronic payments in the millions of dollars. He also warns about scammers targeting vulnerable fire victims and emphasizes the importance of home hardening measures, such as maintaining proper tree distance from homes (5 feet) and having fire-resistant roofs. The discussion reveals that Susman's agency alone is handling over 130 total loss claims from the recent fires.

Highlights

Initial Discussion of Wildfire Crisis and Insurance Response

Host Hal Eisner introduces the unprecedented nature of the recent wildfires and their impact on Southern California communities. Karl Susman describes the unique challenges of this fire, noting its unusual growth pattern and zero containment. The segment includes emotional testimonials from fire victims expressing their shock and determination to rebuild. Susman emphasizes the importance of maintaining existing insurance policies and warns against shopping for new coverage during this period.

Insurance Claims Process and Immediate Assistance

Susman details the immediate steps fire victims should take, emphasizing the importance of filing claims promptly. He notes that insurance companies are making rapid electronic payments, some in the millions of dollars. The discussion covers both homeowner and renter's insurance claims, with Susman explaining that the California Department of Insurance has implemented protective measures for recently canceled policies in affected areas.

Scams and Consumer Protection

The segment warns about various scams targeting fire victims, including fraudulent rebuilding contracts and identity theft schemes. Susman advises against responding to unsolicited communications claiming to be from FEMA or other government agencies, emphasizing that legitimate assistance requires victims to initiate contact.

Future of Insurance in California

Discussion focuses on the broader implications for California's insurance market. Susman explains that despite high risk factors, California currently ranks around sixth for least expensive property insurance nationally. He predicts future rate structures will more accurately reflect risk levels, with higher-risk areas paying more and lower-risk areas potentially seeing reduced rates.

Auto Insurance Challenges and Solutions

The final segment addresses rising auto insurance costs, attributed to increased repair costs due to modern vehicle technology and ongoing supply chain issues from the pandemic. Susman provides practical tips for reducing insurance costs, including reviewing discounts and accurately reporting vehicle usage. He emphasizes the importance of home hardening measures like maintaining proper tree distance and installing fire-resistant roofs.

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FOX 11 News IN DEPTH - Karl Susman Talks LA Wildfire Damage & Insurance Challenges Ahead

Insurance Hour February 2, 2025 8:19 pm

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California’s deepening home insurance crisis is facing another big moment that could impact millions. The state’s largest home insurance company, State Farm wants to raise its rates. The company said it’s in a dire financial situation because of the recent wildfires in Southern California. The wind-driven wildfires in Los Angeles area that started off the year and it destroyed more than 10,000 homes. State Farm said it paid out more than a billion dollars to customers with more to come. That’s part of why the state’s largest home insurer of nearly 3 million policies is asking California’s Department of Insurance to immediately approve a rate increase of 22% to the dismay of some homeowners. “We’re doing the best that we can. I’m not sure why we would have to pay for Southern California,” said homeowner Katherine Munson. “Nothing has changed in our specific location that i would think would warrant an increase in us personally. So, I’m hoping that it doesn’t,” said homeowner Sally Aaron. State Farm said insurance will cost more for customers because the risk is greater here. “The cost of the wildfires will further deplete capital from State Farm General,” the company said in a statement. State Farm added that the approval is essential to more closely align cost and risk and enable State Farm general to rebuild capital. A spokesperson for the department said in a statement: “State Farm General’s rate filings raise serious questions about its financial condition.” They added they plan to investigate to ensure Californians are charged appropriately. The state has been trying to stabilize the industry to address the growing risk of wildfires and climate change after insurance companies refused to take on new customers or dropped them. Historic new regulation just last month means insurance companies are permitted to increase coverage in high-risk areas at an amount that can’t exceed an industry standard. “The new regulations really open things up to have it more of a case to case home by home basis where people can do things to lower their premium they weren’t able to do before,” said insurance agent Karl Susman. Karl Susman said California home insurance rates have been below the national average and less than some other states. “The problem is over the last decade or so. Since we’re having so many more of these catastrophic events, the industry was no longer able to support those premiums with those potential for losses,” he said. Susman said he thinks State Farm and the Department of Insurance will land somewhere in the middle.

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State Farm seeks emergency insurance rate hike following LA County wildfires

Insurance Hour February 13, 2025 6:00 pm

Insurance broker Karl Susman shares critical advice on KNBC TV News about dealing with public adjusters after a disaster. He explains when and how to consider hiring one, why patience with your insurance company is key, and how to avoid high-pressure sales tactics. Get expert tips on maximizing your insurance claim while protecting your settlement. Hashtags: #KarlSusman #PublicAdjusters #InsuranceClaims #DisasterRecovery #KNBCTV #HomeInsurance #ConsumerTips #ExpertAdvice

Insurance broker Karl Susman shares critical advice on KNBC TV News about dealing with public adjusters after a disaster. He explains when and how to consider hiring one, why patience with your insurance company is key, and how to avoid high-pressure sales tactics. Get expert tips on maximizing your insurance claim while protecting your settlement.

Hashtags:
#KarlSusman #PublicAdjusters #InsuranceClaims #DisasterRecovery #KNBCTV #HomeInsurance #ConsumerTips #ExpertAdvice

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"Understanding Public Adjusters: Expert Advice from Karl Susman on KNBC TV News"

Insurance Hour January 16, 2025 1:46 pm

Karl speaks with Lolita Lopez and gives you the information you need to maintain your home insurance after a wildfire. The 2024 wildfire season has been a tense time for home and business owners who – as NBC Los Angeles’ I-Team has reported – are being dropped by their insurance carriers by the tens of thousands as companies are concerned with large losses in events like the Line, Bridge and Airport Fires. "Honestly the hardest part is we are blind. I’ve been calling around all afternoon, trying to find out if my house is still there,” Danny Jacob, who recently evacuated from his home, said. The state’s Department of Insurance said one thing that should not be a worry for homeowners is the possible loss of their insurance. State law requires a mandatory one-year moratorium on insurance companies canceling or non-renewing residential insurance policies in certain neighborhoods after the governor has issued a state of emergency. As soon as Cal Fire establishes a perimeter at a fire site, the Department of Insurance will “put a lock in place,” according to insurance broker Karl Susman “The insurance carriers will not be able to non-renew properties that are in that area for at least a year,” Susman said. Once a state of emergency is declared, the one-year protection applies to residential policyholders who suffer less than a total loss or even no loss at all in the affected area. Homeowners with total loss also have additional protections under the law, according to the Department of Insurance. Home insurance policies could cover other costs, like overnight stays when displaced from homes – but it all depends on one's insurance policy. “It depends on if the evacuation order is mandatory or not. There are a lot of factors that are in there,” Susman explained. “It's always a good idea, if you're in the position of having to evacuate, to contact your insurance carrier and find out what coverage you might be eligible to get for that.” Another important thing for homeowners need to remember, according to the insurance broker, is that carriers are not able to make changes to the policy when there’s an active fire. “You can't call them and say, ‘You know what? I think I should have more coverage today.’ That's not going to happen," Susman said. “The best thing that you can do is (to) get a copy of your policy. You can usually call your agent or broker or you can call the insurance carrier directly.” Karl also urged people to ask their broker straight-forward questions such as what the policy may cover under a mandatory evacuation as every policy has different language when it comes to evacuation rules. New regulations, as the I-Team reported earlier in the summer, would mandate insurance companies to offer policies in certain high risk and underserved communities. The rules are expected to go into effect later this year and would apply to areas of distress, perhaps where wildfires are now, according to Susman, who added the premium, which will reflect that risk potential, could increase in the future but with the possibility of having more options.

Karl speaks with Lolita Lopez and gives you the information you need to maintain your home insurance after a wildfire.

The 2024 wildfire season has been a tense time for home and business owners who – as NBC Los Angeles’ I-Team has reported – are being dropped by their insurance carriers by the tens of thousands as companies are concerned with large losses in events like the Line, Bridge and Airport Fires.

"Honestly the hardest part is we are blind. I’ve been calling around all afternoon, trying to find out if my house is still there,” Danny Jacob, who recently evacuated from his home, said.

The state’s Department of Insurance said one thing that should not be a worry for homeowners is the possible loss of their insurance.

State law requires a mandatory one-year moratorium on insurance companies canceling or non-renewing residential insurance policies in certain neighborhoods after the governor has issued a state of emergency.

As soon as Cal Fire establishes a perimeter at a fire site, the Department of Insurance will “put a lock in place,” according to insurance broker Karl Susman

“The insurance carriers will not be able to non-renew properties that are in that area for at least a year,” Susman said.

Once a state of emergency is declared, the one-year protection applies to residential policyholders who suffer less than a total loss or even no loss at all in the affected area.

Homeowners with total loss also have additional protections under the law, according to the Department of Insurance.

Home insurance policies could cover other costs, like overnight stays when displaced from homes – but it all depends on one's insurance policy.

“It depends on if the evacuation order is mandatory or not. There are a lot of factors that are in there,” Susman explained. “It's always a good idea, if you're in the position of having to evacuate, to contact your insurance carrier and find out what coverage you might be eligible to get for that.”

Another important thing for homeowners need to remember, according to the insurance broker, is that carriers are not able to make changes to the policy when there’s an active fire.

“You can't call them and say, ‘You know what? I think I should have more coverage today.’ That's not going to happen," Susman said. “The best thing that you can do is (to) get a copy of your policy. You can usually call your agent or broker or you can call the insurance carrier directly.”

Karl also urged people to ask their broker straight-forward questions such as what the policy may cover under a mandatory evacuation as every policy has different language when it comes to evacuation rules.

New regulations, as the I-Team reported earlier in the summer, would mandate insurance companies to offer policies in certain high risk and underserved communities.

The rules are expected to go into effect later this year and would apply to areas of distress, perhaps where wildfires are now, according to Susman, who added the premium, which will reflect that risk potential, could increase in the future but with the possibility of having more options.

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NBC - KNBC - How To Maintain Your Home Insurance After A Wildfire (Airdate: 2024-09-11)

Insurance Hour September 12, 2024 5:12 am

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Spectrum 1 News
Insurance agent and industry expert Karl Susman examines California’s current homeowners insurance crisis with “Inside the Issues” host Amrit Singh on Spectrum News 1

Insurance agent and industry expert Karl Susman examines California’s current homeowners insurance crisis with “Inside the Issues” host Amrit Singh on Spectrum News 1

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Industry expert Karl Susman analyzes the insurance crisis in California.

Industry expert Karl Susman analyzes the insurance crisis in California.

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Insurance Hour April 27, 2024 5:17 am

Spectrum 1 News Interview (06/05/2024) || New Newsom Legislation with ITI Host Amrit Singh ---------------------------------------------------------------------------------------------------------------------------------------------------------------- In this episode of Spectrum 1 News, aired on June 5, 2024, ITI host Amrit Singh interviews experts about the latest legislation introduced by Governor Gavin Newsom. The discussion provides an in-depth look at the new laws and their potential impact on California's future. Amrit Singh and guests explore the key aspects of the legislation, its implications for various sectors, and what it means for residents. Tune in to stay informed about the significant changes shaping the state's policy landscape and gain insights into how these legislative developments may affect you. #Spectrum1News #GavinNewsom #NewLegislation #AmritSingh #CaliforniaPolitics #CaliforniaLegislation #GovernorNewsom #ITIHost #PolicyChanges #CaliforniaFuture #LegislativeImpact #NewsomLaws #CaliforniaNews #Spectrum1 #LegislativeUpdates #CaliforniaResidents #StatePolicy #LegislativeAnalysis #CaliforniaUpdates #PoliticalNews #NewsomImpact #CaliforniaSectors #PolicyLandscape #StateLegislation #CaliforniaPolicy #GovernmentNews #LegislativeInsights #California2024 #NewsomReforms #CaliforniaChanges #StateGovernance #LegislativeReview #NewsomLegislation #CaliforniaPolitics2024 #PolicyImpact #CaliforniaLaw #NewsomUpdates #CaliforniaInsight #ITIShow #CaliforniaCurrentEvents #LegislationTrends #StateNews #CaliforniaFutureTrends #LegislativeDiscussion #PoliticalAnalysis #CaliforniaImpact #NewsomNews #CaliforniaDevelopments #LegislativeOverview #SpectrumNewsUpdates #CaliforniaLegislativeImpact #AmritSinghInterviews #NewsomPolicies #StateLegislature #CaliforniaStateLegislation #ITIInterviews #LegislativeImpact2024 #CaliforniaPolicyChanges #NewsomLegislativeUpdate #CaliforniaPolicyAnalysis

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Spectrum 1 News Interview (06/05/2024) || New Newsom Legislation with ITI HostAmrit Singh

Insurance Hour June 6, 2024 4:54 pm

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