In an age where insurance headlines often center on cancellations, premium hikes, and disappearing carriers, one voice continues to remind Californians of something fundamental: insurance, at its core, is a contract of protection.
In a recent episode of Insurance Hour, host and independent broker Karl Susman unpacked the maze of modern coverage — from homeowners and auto insurance to the evolving world of health and long-term care. His message was clear: consumers and professionals alike need to understand what their policy actually says, not just what they think it covers.
This educational deep dive offers clarity amid the confusion, exploring what Susman calls "the real insurance education gap."
Susman began the conversation by addressing a trend he sees daily: policyholders assuming their insurance works one way, only to discover too late that it doesn't.
"Insurance is not one-size-fits-all," Susman explained. "It's customized, it's contractual, and it's only as good as what's written on that page."
He emphasized that many consumers buy policies based solely on price — a risky strategy in today's market. With rates rising and coverage shrinking, comparing policies only by premium can lead to dangerous misunderstandings.
"The cheapest policy is cheap for a reason," he said. "It may exclude water damage, wind damage, or limit your roof coverage. That fine print is where your real protection lives."
One of Susman's strongest insights centered on the slow but steady erosion of what used to be called "comprehensive" coverage.
In both homeowners and auto insurance, the term has become more of a marketing shorthand than a guarantee. Comprehensive once implied broad protection against nearly all perils — today, it often means "coverage for everything except what's excluded," and those exclusions keep expanding.
"When I started in this business, policies were broader," Susman said. "Now, every few years, we see new limitations — especially in property insurance. Carriers have rewritten policies to protect themselves against climate exposure and litigation risk."
For example, some modern homeowners policies exclude smoke damage unless it's tied to a direct wildfire event. Others cap water loss payouts, or exclude older roofs altogether.
This narrowing of coverage, Susman warned, demands a new level of vigilance from policyholders — and transparency from insurers.
