When it comes to insurance, the biggest mistakes are often the ones you don't realize you're making. Every day, homeowners, drivers, and small business owners across California put their financial security at risk — not because they're reckless, but because they assume their coverage is enough.
In a recent episode of Insurance Hour, host Karl Susman tackled some of the most common — and costly — misconceptions people have about their insurance policies. Through listener questions ranging from home-based business coverage to cyber liability, Susman highlighted one simple truth: understanding your policy is your best defense against financial disaster.
This article breaks down the top insurance mistakes revealed during the show — and what you can do right now to avoid them.
One listener from Santa Clarita called in to ask if he could simply add his plumbing business van to his personal auto policy to "keep things simple."
Susman's response was clear: "This is a true commercial exposure."
A personal auto policy is designed to cover everyday driving — errands, commuting, and family use — not vehicles used for income-generating activities. Once your car becomes a work vehicle, it moves into a different risk category altogether.
Why it matters:
If you're in an accident while driving for business, your personal insurer can legally deny the claim. That means you could be left paying for medical costs, repairs, or liability lawsuits out of pocket.
The fix:
Ask your agent about a commercial auto policy specifically for business vehicles.
If you occasionally use your personal car for work (e.g., site visits, deliveries), make sure your personal policy includes a "business use" endorsement.
Keep records showing which vehicle is used for business and how often — it can save you later in a claims dispute.
A listener from Daly City runs a boutique from her home and wanted to know if her homeowner's policy would protect her inventory and liabilities.
Susman didn't mince words:
"This is not the coverage you're looking for."
Homeowners insuran ...
