Key Insurance Insights from Karl Susman on Insurance Hour
Published Date: 01/24/2025
Insurance isn’t exactly the most glamorous topic, but it touches nearly every part of our lives—from our homes and cars to our health and financial security. In a recent episode of Insurance Hour, host Karl Susman tackled a broad range of listener questions—each revealing simple but powerful ways to understand coverage, cut costs, and avoid the costly mistakes many policyholders make.
Whether you’re a homeowner, a parent of a teenage driver, or just trying to make sense of all those premiums, this discussion uncovered valuable insights worth sharing.
1. The Truth About Deductibles – When “High” Can Be Smart
One of the first listener questions came from Erica in Boise, who asked whether it’s better to have a higher deductible on her homeowner’s policy to keep premiums low.
Karl’s response: a higher deductible can absolutely save you money, but only if you can comfortably afford to pay that amount out-of-pocket when a loss occurs.
Raising your deductible is usually better than reducing coverage or lowering limits, which can leave you dangerously underinsured. However, it’s essential to do the math—if you can’t afford your deductible in an emergency, your “savings” will evaporate the moment you file a claim.
Pro Tip:
Use your emergency fund as your guide. If you have $2,500 set aside, don’t choose a $5,000 deductible just to save a few dollars a month.
2. Insuring Teen Drivers – Avoid a Costly “Policy Shortcut”
Kevin from Dallas asked a common question: should he put his teenage daughter on her own auto policy or keep her on the family’s plan?
Karl’s answer was eye-opening. It’s not just your choice—it’s about “insurable interest.” To have her own policy, your daughter must legally own or lease the vehicle. Otherwise, the insurer could deny a claim because she doesn’t have a legitimate ownership stake.
Even if the car is in her name, if she lives under your roof and you support her financially, you may still be liable for damages she causes—meaning a separate policy won’t necessarily shield you.
The Bottom Line:
Keeping your teen on the family policy is usually safer and easier. It ensures full coverage continuity and avoids liability confusion down the line.
3. Refinancing and Home Insurance – Does It Matter?
Another listener wondered if changing mortgage lenders during a refinance affects their insurance.
The short answer: No, not usually. Changing the “mortgagee”—the bank listed as an interested party on your policy—doesn’t alter your coverage terms or price.
However, Karl pointed out that if you add multiple lenders or take on new loans, insurers might reevaluate your risk profile at renewal. Too many mortgages can be seen as a red flag for financial instability.
4. Flood and Earthquake Insurance – The Coverage Most People Forget
Jared wrote in about his neighborhood flooding twice in five years, asking if standard homeowner’s insurance covers floods.
Karl’s blunt answer: “Say it with me—flood insurance is not part of your homeowner’s policy.”
Flood damage is explicitly excluded from homeowners insurance. To protect your home, you must buy a separate flood policy, either through FEMA’s National Flood Insurance Program (NFIP) or a private insurer.
Similarly, earthquakes aren’t covered by homeowners policies either. Karl recommended looking into specialized insurers like GeoVera for affordable earthquake coverage.
The takeaway? Don’t assume your “comprehensive” home policy covers every natural disaster—it doesn’t.
5. Downsizing and Relocating – Why Smaller Doesn’t Always Mean Cheaper
One listener asked whether moving to a smaller home would automatically lower insurance costs.
While size matters, Karl explained that location, claims history, and construction type all play major roles. A smaller home in a wildfire-prone or high-crime area can actually cost more to insure than a larger one in a safer neighborhood.
Always get quotes for your new address before you move—insurance risk is geographic.
6. Umbrella Policies – The Secret Weapon for Asset Protection
Nora’s question about umbrella policies led to one of the show’s most valuable discussions.
An umbrella policy doesn’t add more coverage for your home or car—it adds extra liability protection once your base policies max out.
For example, if you cause a major car accident and exhaust your $500,000 liability limit, your umbrella policy (usually starting at $1 million) kicks in.
Karl’s advice was clear: if you own a home or have substantial assets, you need an umbrella policy. Lawsuits are common, and even one serious incident could wipe out years of savings.
7. Life Insurance – Term vs. Whole Life Simplified
A listener asked about the difference between term life and whole life policies. Karl broke it down beautifully:
- Term life = pure coverage for a fixed period (10, 20, or 30 years). It’s cheaper but expires.
- Whole life = lasts your entire lifetime and builds cash value over time, but it costs more.
Neither is “better” universally—it depends on your needs, goals, and financial situation.
Karl warned against “one-trick-pony” agents who push the same product on everyone. Instead, find a life insurance specialist who can tailor a solution for your unique situation.
8. Insuring Teen Drivers (Part 2) – The Cost Control Playbook
When a listener asked about getting affordable coverage for a teenage driver, Karl emphasized education and responsibility over shortcuts.
You can save money through:
- Good student discounts
- Defensive driving courses
- Choosing modest, inexpensive vehicles
- Maintaining a clean driving record
And while the rates may still be high, they’ll gradually drop as your teen builds experience.
9. Renters Insurance – Small Premium, Big Protection
Jennifer’s question about renter’s insurance prompted Karl to clarify a huge misconception: it’s not just about your “stuff.”
While renters insurance covers your personal belongings, it also includes liability coverage—protection if someone gets hurt in your apartment or you accidentally cause damage to others’ property.
For just a few dollars a month, renters insurance is one of the most cost-effective financial safety nets available.
10. Gender and Life Insurance Pricing – Why Women Pay Less
When Max in Ohio asked if gender affects life insurance rates, Karl confirmed it does—women typically pay 5–10% less.
Statistically, women live longer and engage in fewer risky activities, so insurers price accordingly. However, some companies now offer gender-neutral policies, averaging rates across all applicants.
While these products simplify underwriting, they can also mean women pay slightly more and men slightly less than they otherwise would.
11. Flood Zones and FEMA – Protecting Your Home the Right Way
Another listener discovered their property had been reclassified into a flood zone. Karl’s advice was simple and direct: buy flood insurance immediately.
Flood maps change, and once your area is officially designated a flood zone, your lender might require coverage anyway. It’s better to secure a policy while you still qualify for lower “preferred risk” rates.
12. The High-Risk Driver Dilemma – Finding the Right Insurance Company
Finally, Karl addressed a listener with a poor driving record asking how to bring rates down.
His advice: find insurers who specialize in high-risk drivers. Many companies focus on clean drivers, but others compete for business from those with tickets, accidents, or suspensions.
As for lowering your premiums over time—there’s no secret formula: drive safely, avoid new claims, and stay consistent. Your rates will naturally improve as old incidents fall off your record.
The Takeaway: Insurance Confidence Starts with Education
Karl’s latest Insurance Hour reminds us of one thing: the more you understand, the more you save.
Insurance isn’t about blindly paying premiums—it’s about managing risk intelligently. Whether it’s understanding deductibles, adding flood coverage, or protecting your assets with an umbrella policy, informed decisions equal financial security.
As Karl often says, “It’s your money. You simply need to know more than you used to.”
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