CBS, KCAL News, homeowners insurance hotline, 6/3/2025

Published Date: 06/03/2025

California’s Home Insurance Hotline: What the CBS/KCAL Special Revealed About the State’s Coverage Crisis

When CBS/KCAL News Los Angeles opened a special homeowners insurance hotline in June 2025, the phones began ringing before the broadcast even started — and they didn’t stop all evening.

Producers expected a busy hour. Instead, they got a vivid picture of a crisis that has reached every corner of California: homeowners unable to afford coverage, wildfire victims waiting months for payouts, and retirees paying more in insurance premiums than in mortgage payments.

“How am I going to afford my insurance?” one caller asked. “I’m paying more for insurance than I do for my house note.”

That single question — repeated dozens of times — captured the mood of the event. What began as a simple public service segment quickly evolved into a real-time snapshot of California’s insurance affordability emergency.

1. The Phones Were “Ringing Off the Hook”

Consumer reporter Christine Lazar hosted the hotline, joined by a panel of insurance experts including Karl Susman, independent broker and analyst who has become one of the most recognizable voices in California’s insurance reform conversation.

As cameras rolled, viewers could hear the nonstop clatter of ringing phones in the background.

“You can hear it — the phones are ringing off the hook,” Lazar said during the live segment. “We’ve compiled this team of experts to answer your calls. If they don’t have the answer, they’ll point you in the right direction. The goal is to give people the knowledge and power they need so they can push back if they feel they’ve been taken advantage of.”

That simple mission — giving people the power to push back — has become a rallying cry in California’s struggling insurance market.

2. When Your Premium Doubles (or Triples) Overnight

One of the most telling conversations Lazar highlighted came from a call Susman had just completed. The caller, an older homeowner, said her annual premium had risen from $1,500 to $3,000 to $4,500 within just a few years.

“She was concerned,” Lazar told viewers. “She asked, ‘What’s it going to be next year?’”

Susman had a straightforward but powerful piece of advice:

“Shop around — and treat it like you’re looking for a new doctor,” he said. “You want someone good, someone who knows what they’re doing. Find an independent broker who can give you options.”

For consumers overwhelmed by rate increases, this might sound simple — but Susman emphasized that choosing the right representative matters just as much as choosing the right policy.

“There are great people in this business and some who aren’t as good,” he said. “When you’re looking for coverage, make sure you have someone who really knows their job.”

3. How to Find Help Without Going Online

In an era when many Californians rely on websites or comparison tools to find insurance, Susman offered practical advice for those who aren’t comfortable using technology.

“If you don’t use computers, just call the California Department of Insurance,” he said. “Give them your ZIP code and ask for a list of independent brokers in your area.”

The Department of Insurance maintains a statewide directory of licensed agents and brokers, and representatives can help consumers identify legitimate professionals near them — a critical safeguard in an industry where scams and misleading marketing are on the rise.

Susman’s caller, according to Lazar, was “thrilled” by that suggestion — a reminder that even basic consumer education can make a major difference in navigating today’s complex insurance market.

4. Why So Many Californians Are Paying More Than Their Mortgage

The broader issue, of course, is why premiums have skyrocketed in the first place.

Over the past five years, California has faced a perfect storm of inflation, catastrophic wildfire losses, and regulatory stagnation. Insurers are required to get state approval before raising rates under Proposition 103, a voter-approved law dating back to 1988.

While that law was originally designed to protect consumers, insurers now argue that the approval process is so slow and restrictive that they cannot adjust pricing fast enough to keep up with real-world risk and reinsurance costs.

In response, many companies — including State Farm, Allstate, and Farmers — have either paused new business, stopped renewals, or limited coverage in high-risk regions.

That retreat has left homeowners scrambling for alternatives, often landing them in the California FAIR Plan, the state’s insurer of last resort.

Unfortunately, FAIR Plan policies typically only cover fire — not theft, liability, or water damage — forcing homeowners to buy additional “wraparound” policies that further inflate total costs.

For those living on fixed incomes or in wildfire zones, the math simply doesn’t work.

5. From Confusion to Empowerment: The Hotline’s Purpose

What made the CBS/KCAL event so powerful was its emphasis on consumer empowerment.

Rather than focusing on political blame or market theory, Lazar and her panelists aimed to translate complex insurance concepts into clear, actionable steps.

“The goal is to give people the knowledge and power they need,” Lazar said. “So they can push back if they feel they’ve been taken advantage of.”

The tone of the event was urgent but empathetic. Viewers were not just told why premiums are rising, but what they can do right now to protect themselves — from shopping smarter to filing complaints with the state regulator.

6. Common Caller Questions — and Expert Answers

❓ “Why was my policy non-renewed?”

Non-renewals, Susman explained, are often driven by risk concentration. If an insurer has too many homes in a given ZIP code — especially a high wildfire area — it may reduce exposure by dropping even long-term, claim-free customers.

❓ “Can I challenge a claim denial?”

Yes. Consumers can request written explanations citing specific policy language. If unsatisfied, they can file a complaint with the California Department of Insurance, which can compel insurers to respond.

❓ “Is it worth staying with my company if my rate jumps?”

Susman’s advice: shop around annually. Even loyal customers can benefit from getting competitive quotes. And working with a broker — who can access multiple carriers — is often the best way to uncover those options.

7. “Don’t Give Up” — Persistence Pays Off

As the hotline continued, one theme emerged over and over: homeowners are tired. They’re tired of paperwork, denials, and rate hikes — but also afraid to switch carriers for fear of losing coverage altogether.

Susman urged viewers not to give up.

“Push back,” he said. “If you get a denial or an increase you don’t understand, ask questions. Call your broker, call the company, and if that doesn’t work — call the Department of Insurance. There are people who will help you.”

It’s advice rooted in decades of experience. As both broker and educator, Susman has long argued that informed consumers are not just better protected — they’re part of the solution.

“The more people understand how this system works, the harder it is for anyone — insurer or regulator — to ignore them.”

8. Why Public Education Is Key to Solving the Crisis

The success of events like the CBS hotline reflects a simple truth: policy reform must go hand in hand with public education.

California’s insurance problems are not going away overnight. Regulatory modernization, climate adaptation, and risk modeling updates are years in the making. But consumers can take meaningful action right now — if they know where to start.

As Lazar noted, many callers didn’t even realize they could get help for free from the Department of Insurance. Others didn’t know they could file formal complaints when claim handling seemed unfair.

That lack of awareness has fueled the perception of powerlessness. The hotline, in contrast, turned confusion into empowerment.

9. Building a Stronger Future Through Knowledge

The CBS/KCAL event was more than a media segment — it was a glimpse into what effective consumer engagement looks like.

By pairing journalists with licensed professionals, it bridged the gap between the public and an industry that often feels opaque and unapproachable.

And perhaps most importantly, it reminded Californians that even in a time of market turmoil, they are not powerless.

“When we shop for anything — insurance, a doctor, a car — we look for someone we trust,” Susman said. “That’s the starting point. The right people make all the difference.”

Final Thoughts

California’s homeowners insurance crisis remains one of the most complex and urgent consumer challenges in the state’s modern history. But as the CBS/KCAL hotline demonstrated, the path forward begins with connection — between homeowners, industry experts, and regulators.

When those connections are strengthened, frustration gives way to understanding, and understanding gives way to action.

Whether through education, transparency, or persistent advocacy, Californians are learning that they can navigate this system — and that help is out there, often just a phone call away.

“The phones were ringing off the hook for a reason,” Lazar said. “People are desperate for answers. And the good news is — there are people who can help.”