When the unexpected happens — a burst pipe, a fallen tree, or even a dog bite — few homeowners are truly prepared for the maze of decisions that follow. Should you file a claim? Will your premiums skyrocket? What happens if your neighbor's tree crushes your garage, or if you accidentally hit a fence with your car?
These are the kinds of real-world questions tackled in Insurance Hour with Karl Susman's recent episode, "Disaster Strikes! Can Your Insurance Handle It?" In this listener-focused edition, Karl brings his trademark mix of humor, empathy, and deep industry expertise to explore how insurance actually functions when disaster becomes personal.
From water damage to liability coverage, here's what consumers — and agents — can learn from these insightful stories.
The episode opens with a question from Martha, a homeowner who returned from vacation to find her kitchen flooded due to a burst pipe. Her story is one many Californians can relate to: ruined cabinets, soaked hardwood floors, and an emerging mold problem.
Karl immediately clarifies one of the most misunderstood insurance terms: "flooding."
"Flood damage," he explains, "isn't the same as water damage. Flooding comes from rising water — that's only covered by flood insurance. A broken pipe, however, is usually covered under your homeowners policy."
While Martha's loss seems clear-cut, Karl highlights a critical distinction — timing and maintenance matter. If a pipe bursts suddenly and unexpectedly, that's a covered peril. But if it's due to long-term neglect or a slow leak, the claim could be denied.
His top tip? Install an automatic water shut-off valve.
These inexpensive devices can detect continuous water flow and stop it before a small leak becomes a catastrophe — a particularly valuable safeguard for homeowners who travel frequently.
Martha's second concern was whether filing a claim would cause her premiums to skyrocket. Karl's answer reflects the nuance often missing from generic insurance advice.
"If the claim is substantial, file it," he says. "But if it's small enough that you can handle it yourself, it's often better to pay out-of-pocket and keep your 'zero-claims' discount."
In essence, filing a claim should be a strategic decision, not an emotional one. Small, frequent claims can erode your loss-free status and lead to higher rates. Large, unavoidable claims? That's what insurance is for.
