Insurance used to be simple: you paid a premium, filed a claim if disaster struck, and trusted your carrier to deliver on its promise. But in today's volatile market—marked by wildfires, floods, inflation, and mass non-renewals—understanding what's covered (and what's not) has become increasingly complicated.
In a recent segment of Insurance Hour, host Karl Susman tackled one of the most common frustrations facing consumers today: how to make sense of their insurance coverage when the rules, rates, and risks seem to change overnight. From homeowners and auto policies to life and renters coverage, Susman's insights offered clarity on how consumers can ask the right questions—and get real answers—before it's too late.
The insurance industry has long battled a communication problem. Policies are written in dense, technical language. Exclusions hide in the fine print. Renewal notices come with rate increases but little explanation.
As Susman explains, "People think they know what's in their policy—until something happens. Then they realize what they thought they had and what they actually have are two very different things."
California's ongoing insurance crisis has amplified this disconnect. Major carriers like State Farm, Allstate, and Farmers have stopped writing new homeowners policies in high-risk regions. Others are slashing renewals or raising rates by double digits. Consumers are left wondering: Am I covered?
Susman's advice is both simple and crucial:
"You can't control the market, but you can control how well you understand your coverage."
Every policyholder should start by asking a series of "What if" questions—because those are the questions that determine whether you'll be protected when disaster strikes. Susman encourages consumers to look beyond the basics and think in real-world scenarios.
What if my home is damaged in a wildfire or flood?
Many homeowners assume "fire insurance" means all natural disasters are covered. But flood and earthquake coverage are excluded from standard policies. You'll need separate policies or endorsements.
What if I rent out my home?
Short-term rentals through platforms like Airbnb often invalidate standard homeowners policies. You'll need a landlord or rental endorsement.
What if someone ...
