(Airdate: 2024-02-05) FOX - KTVU - Navigating Damage Claims
Published Date: 02/05/2024
Storm Damage in California: What’s Covered, What’s Not, and How to Handle Claims the Right Way
After weeks of relentless rain and powerful winds, California homeowners are once again facing widespread storm damage. From flooded basements and downed trees to mudslides and roof leaks, many residents are asking the same urgent question: “Will my insurance cover this?”
In a February 2024 FOX KTVU interview, insurance expert Karl Susman, president of the Susman Insurance Agency, provided clear and practical guidance on what homeowners should do after a major storm — and what types of damage are (and aren’t) typically covered under standard insurance policies.
His insights reveal both the complexity and the urgency of storm recovery in California’s fragile insurance landscape.
When the Storm Hits: “Shock and Awe”
Even though forecasters had warned that strong storms were coming, Susman noted that the reality still catches people off guard.
“We knew this was coming,” he said, “but when it’s here, it’s still shock and awe.”
As atmospheric rivers drenched the state, homeowners faced a mix of water damage, flooding, and structural issues — all of which fall into very different insurance categories.
“We’re seeing everything,” Susman explained. “Water damage, flood damage, mudslides, downed trees, rain-driven water — you name it.”
That’s where the confusion starts. Because while “water damage” and “flood damage” may sound the same, they’re treated very differently by insurers.
Understanding Coverage: Water vs. Flood vs. Mudslide
Susman broke down how to determine what’s covered under a standard homeowners insurance policy — and what requires special coverage.
✅ Water Damage (Covered)
If rain enters your home from above, such as through a roof leak or wind-driven rain coming through windows, that’s typically covered by a standard homeowners policy.
“If you have water entering from the roof, it’s water coming down — that’s usually covered,” Susman said.
❌ Flood Damage (Not Covered Without Flood Insurance)
If water rises from the ground up, it’s considered flood damage — and that’s excluded from homeowners policies.
“When you’re looking at water that’s rising from the ground up, that’s flood coverage,” Susman explained. “You’d need a separate flood insurance policy for that.”
Flood insurance is available through the National Flood Insurance Program (NFIP) or private carriers, but it must be purchased before a flood occurs — not after.
⚠️ Mudslide and Earth Movement (Rarely Covered)
Mudslides and similar earth movement events are typically excluded from both homeowners and flood insurance policies. That means homeowners in high-risk hillside or burn-scar areas may need specialized “difference in conditions” (DIC) coverage or landslide-specific policies.
“Everything else — mudslide, that sort of thing — is typically not a peril you can get coverage for at all,” Susman noted.
Filing a Claim: Act Quickly and Document Everything
When major storms hit, insurance companies are flooded with claims — often thousands in a matter of days. That’s why Susman urges homeowners to act immediately to secure their place in line.
“The best thing to do right now is first, be careful,” he said. “Don’t go out or try to fix things yourself. Do whatever you can to prevent further damage, document everything with photos and videos, and file the claim with your insurance carrier right away.”
Even if you’re not sure whether the damage will be covered, Susman recommends filing anyway. Insurers can sort out coverage specifics later — but missing the reporting window could hurt your claim.
“Don’t worry about figuring it out,” he emphasized. “Take pictures, document it all, and get the process underway so the insurance carrier can do what they can to help.”
The “Cat Event” Exception: Why Some Claims Won’t Count Against You
California homeowners often hesitate to file small claims, fearing that doing so will raise premiums or lead to nonrenewal. Susman agreed that this is a valid concern — but clarified that major storm events are treated differently.
“For small claims, just try to deal with it unless you absolutely have to file,” he said. “But for something like this — a catastrophe event, or what the industry calls a ‘cat event’ — those claims typically aren’t held against the policyholder.”
In other words, when widespread disasters occur, insurers are less likely to penalize customers for filing claims. That’s because these losses are seen as unavoidable natural catastrophes, not isolated incidents of negligence or bad luck.
This distinction can make a huge difference for homeowners who are debating whether to file.
Preventive Steps During and After the Storm
Beyond filing claims, Susman offered a series of practical, real-world tips for protecting your property during severe weather. Some are simple but surprisingly easy to overlook:
1. Turn Off Your Sprinklers
“People forget their sprinklers are on timers,” Susman said. “They’ll just stay on and make the situation worse.”
During prolonged rain, sprinklers can oversaturate soil, increasing the risk of flooding and foundation damage — particularly near basements or crawlspaces.
2. Park Smart to Prevent Vehicle Damage
Susman reminded viewers of a lesson from driver’s ed: how to turn your car wheels toward the curb when parking.
“When you’re seeing 6, 7, 8, even 10 inches of water, that’s enough to make your car hydroplane or float away,” he said. “If the wheels are turned into the curb, you can keep your car from literally leaving on its own.”
It’s a small precaution that can prevent costly damage — or even save lives in flash-flood zones.
3. Stay Home if Possible
“If you can work from home, do it,” Susman advised. “Don’t go out unless it’s absolutely necessary.”
Beyond safety, staying off the roads helps reduce strain on emergency services and prevents additional accidents during extreme weather.
4. Keep Your Cell Phone Charged and Nearby
Power and internet outages are common during severe storms, but cell networks often stay operational.
“Your cell phone is your best friend right now,” Susman said. “Even if the power goes out, your phone runs on a different infrastructure. Keep it charged and have backup batteries handy — that’s your lifeline.”
5. Clear Your Gutters — If It’s Safe to Do So
Clogged gutters are one of the leading causes of interior water damage during heavy rain.
“If it’s still safe to do so, try and clean out those rain gutters,” Susman suggested. “Even if you already did, they’re full again after this storm — I can almost guarantee it.”
The Bigger Picture: A Changing Climate and an Overstressed Market
California’s storms are no longer rare anomalies — they’re becoming part of a new climate normal. For insurers and homeowners alike, this means adjusting expectations and preparedness strategies.
Susman, who holds a master’s degree in Insurance Management from Columbia University, has been vocal about how climate-driven disasters are reshaping California’s insurance landscape.
With insurers already retreating from wildfire-prone areas, repeated flooding and storm losses could drive similar pullbacks in coastal and low-lying regions. That’s why understanding coverage — and preparing before disaster hits — is more important than ever.
“It’s a big deal,” Susman said. “We’re in the middle of it. We just need to be careful, take the right steps, and let insurance do what it’s designed to do.”
What Homeowners Should Do Now
If your property suffered damage in California’s recent storms, here’s a step-by-step checklist drawn from Susman’s advice:
- Ensure safety first. Don’t enter flooded or structurally unstable areas.
- Prevent further damage. Shut off water if needed, cover broken windows, and avoid electrical hazards.
- Document everything. Take photos and videos from multiple angles.
- File your claim immediately. Even if coverage is uncertain, getting in the queue ensures faster processing.
- Keep receipts. Save records for temporary repairs, hotel stays, or emergency expenses — these may be reimbursable.
- Follow up regularly. Stay in touch with your insurance adjuster and confirm updates in writing.
- Don’t panic about small claims. Catastrophe-related claims generally won’t count against your record.
Conclusion: Preparation Is the Best Protection
California’s weather patterns are shifting, and with them, the definition of “normal” risk. While insurers and regulators debate long-term solutions, homeowners must focus on preparedness, documentation, and timely action.
As Karl Susman reminded viewers, even in chaos, small steps make a big difference — from turning off sprinklers to filing claims promptly.
Disasters may be unpredictable, but your response doesn’t have to be. Understanding your coverage and acting decisively can help turn a storm from a catastrophe into a recoverable event.
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