CBS Special phone bank for Homeowners Insurance

Published Date: 06/05/2025

California’s Home Insurance Crisis: What the CBS “Phone Bank” Revealed About Consumer Frustration — and Power

When CBS News Los Angeles hosted a live homeowners insurance phone bank, the response was overwhelming.

Within minutes of going live, the newsroom’s phones lit up — and they didn’t stop ringing for hours. Homeowners from every corner of Southern California called in with the same question, in different forms:

“Why is my insurance so expensive?”
“Why was I dropped?”
“Who can I talk to when my claim goes nowhere?”

The event, led by consumer reporter Christine Lazar and joined by industry experts like Karl Susman, exposed what has become one of California’s most pressing consumer issues: a system that’s leaving homeowners feeling powerless — and yet, as Susman reminded callers, they have more leverage than they realize.

1. The Call Volume Speaks for Itself

Lazar described the scene as “phones ringing off the hook.” Hundreds of residents flooded the lines between 3:30 p.m. and 6:30 p.m., seeking help with everything from non-renewals and rate hikes to claim disputes with the California FAIR Plan — the state’s insurer of last resort.

For many, it was the first time they’d had the chance to speak directly with an expert who could explain their options.

“We’re hearing from so many people who have insurance-related questions,” Lazar said live on air. “A lot of them are wondering: How can I afford insurance? What can I do about my fire coverage?”

Behind the phones sat a small group of industry professionals — including independent agent and insurance analyst Karl Susman, who has become a familiar face for Southern Californians navigating today’s insurance turmoil.

2. The Common Thread: Frustration and Confusion

When asked what themes he was hearing from callers, Susman didn’t hesitate:

“It seems like one of the more common calls tends to be that people are having multiple adjusters assigned,” he explained. “They start out with one, they do some work, and then get assigned another — and sometimes even another one. I’ve seen people who’ve had five adjusters.”

That revolving-door experience, he said, is traumatic and frustrating for policyholders already dealing with loss. Each new adjuster means retelling the same story, re-sending documents, and often facing different interpretations of what the policy covers.

“That’s not normal, and that’s not okay,” Susman emphasized.

His advice: if you’re experiencing multiple adjusters or claim inconsistencies, complain — and escalate.

“Ask for a supervisor,” he urged. “And if you’re still not getting satisfaction, go to the Department of Insurance and report it.”

3. The FAIR Plan and the Smoke Damage Controversy

One of the biggest issues raised during the phone bank involved the California FAIR Plan’s handling of smoke damage claims — a long-running controversy that dates back to a 2022 Department of Insurance investigation.

Lazar highlighted a key question from homeowners who had survived wildfires but couldn’t move back home because the FAIR Plan had denied or undervalued their claims.

“Does the FAIR Plan have to cover smoke damage per California law?” she asked.

Susman’s answer was unequivocal:

“Yes. It goes back to a hearing in the summer of 2022, where the Department of Insurance looked at how the FAIR Plan handled smoke-damage claims in prior years. They found the FAIR Plan wasn’t in compliance with California law — so much so that they made them reopen 59 claims and pay them.”

Following that ruling, the Insurance Commissioner ordered the FAIR Plan to update its policy language to explicitly include smoke damage coverage. Yet, as Lazar noted, state lawmakers say that still hasn’t happened.

This ongoing dispute underscores how even state-backed insurance systems can fall short in execution — and how critical consumer persistence can be in achieving fair outcomes.

4. “Push Back — You Have More Power Than You Think”

For many callers, the recurring theme was a sense of helplessness. They’d filed claims, provided documentation, and waited months — only to receive lowball estimates or repeated delays.

Susman’s response was consistent throughout the event: don’t accept the first “no.”

“If you’re told, ‘Sorry, we’re not covering that,’ speak to someone you trust — someone other than the adjuster,” he advised. “If you’re working with an agent or broker, tell them, ‘This doesn’t make sense to me. They’re offering $400 or $800, and my contractor’s estimate is in the tens of thousands. What do you think?’”

That second opinion, he said, often makes all the difference.

“Push back — because as consumers, we really do have a lot more power than we think we do.”

It’s advice that resonated across the newsroom. Even for those who couldn’t get their problems solved immediately, the message was empowering: you’re not powerless; you’re just underinformed.

5. The Broader Context: A System Under Strain

California’s homeowners insurance market has been in crisis for years — but 2023 and 2024 have brought it to a breaking point.

• Major insurers like State Farm and Allstate have paused or limited new policies.
• The California FAIR Plan now insures over 350,000 homes, a record high.
• Regulatory gridlock under Proposition 103 has delayed rate approvals, leaving insurers unable to price accurately for wildfire and inflation risk.

The result is a marketplace where consumers are paying more for less coverage — and many are struggling to find any coverage at all.

That pressure flows directly into claim-handling, where both public and private insurers are stretched thin. Multiple adjusters, long wait times, and incomplete payouts are symptoms of a system under administrative and financial stress.

The CBS phone bank wasn’t just a public service — it was a mirror held up to a state-wide breakdown in communication, trust, and transparency.

6. Why Live Events Like This Matter

While news segments and policy hearings often focus on macroeconomics and legislation, Lazar’s live event was about real people — retirees, single parents, renters, and homeowners — trying to navigate a system that’s supposed to protect them.

By putting industry professionals on the phone with viewers, CBS gave frustrated consumers something they rarely get: direct access.

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

That mission reflects a growing demand for transparency in the insurance industry — not just in pricing, but in communication and accountability.

7. What Homeowners Should Do If They’re Struggling with Claims

Drawing from Susman’s live advice and California’s Department of Insurance guidance, here’s a concise roadmap for homeowners facing claim or coverage problems:

✅ 1. Document Everything

Keep a written log of every call, email, and adjuster visit. Include names, dates, and summaries of what was said.

✅ 2. Request Clarification in Writing

If an insurer denies coverage or offers a low settlement, ask for an explanation in writing. You’re entitled to know the policy language being cited.

✅ 3. Ask for a Supervisor

If you’ve had multiple adjusters or feel your claim isn’t progressing, escalate. Supervisors have authority to review and override earlier decisions.

✅ 4. Contact the Department of Insurance

File a complaint through the California Department of Insurance (CDI) if you believe your claim is mishandled or unfairly denied. CDI has power to investigate and compel responses from insurers.

✅ 5. Use an Independent Agent or Broker

Independent agents work with multiple carriers, giving you more options — and someone who can advocate for you when the process gets complicated.

8. The Power of Persistence

As the CBS phone bank wrapped up, Lazar thanked viewers for their patience — and the experts for their time. But the larger message came from the constant ringing of the newsroom phones.

Every call represented a story — a family worried about rebuilding, a senior facing renewal shock, a first-time homeowner unsure what’s covered.

And for each of those calls, Susman’s message remained the same:

“If something doesn’t sound right, it probably isn’t. Ask questions, push back, and get help. Don’t just take their word for it.”

9. Final Thoughts: Restoring Balance Through Awareness

California’s insurance crisis won’t be solved overnight. Legislative reforms, updated risk modeling, and modernized regulations will take time to materialize.

But knowledge — like what the CBS phone bank delivered — offers immediate relief.

For homeowners, understanding your policy, your rights, and your avenues for escalation can turn confusion into control.

As Susman said, “Consumers have more power than they think.”

And as Lazar proved, when the lines are open — people will call. Because at the end of the day, insurance isn’t just about money. It’s about trust.