Karl Susman on how to prepare for insurance claims amid California fires
Published Date: 01/10/2025
Preparing for Insurance Claims Amid California’s Wildfires: Lessons from the Front Lines
As California’s wildfires once again devastate neighborhoods from the Hollywood Hills to the Pacific Palisades, thousands of homeowners are facing a painful question: Will my insurance actually protect me when I need it most?
For many, the answer is uncertain. After years of insurer withdrawals, non-renewals, and skyrocketing rates, even long-time policyholders are discovering that their homes — and futures — may not be as secure as they thought.
In a recent interview on CBS’s On Your Side, insurance expert and broker Karl Susman shared firsthand insights from the crisis zone, offering both a sobering look at the current insurance landscape and practical guidance for those navigating the claims process amid chaos.
1. A Catastrophe Measured in Human Stories
The Southern California wildfires have already destroyed over a thousand structures, displaced tens of thousands of residents, and left entire communities blanketed in smoke and uncertainty.
For many, the trauma goes beyond property loss. As one resident tearfully told CBS:
“I know I’m not supposed to be here, but this is my parents’ home. Insurance people decided to cancel their fire policy. We’re going through this — and we have no fire insurance.”
That heartbreaking reality reflects a growing crisis of insurance availability in California’s high-risk regions. The state’s complex regulatory system and escalating wildfire exposure have combined to push several major carriers — including State Farm and Allstate — to stop writing or renewing home insurance policies in many fire-prone areas.
2. Inside the Fire Zone: “We’re Just Dealing with the Cards We’ve Been Dealt.”
Susman himself was forced to evacuate, along with his family. His approach was pragmatic:
“I go by the adage, ‘Don’t be brave.’ The minute I saw the fire, I wasn’t waiting for evacuation orders — I said, we’re going. The most important thing is family. The rest, we’ll deal with.”
Even while displaced, Susman and his team have been working around the clock helping clients file claims, contact insurers, and navigate the complexities of post-fire recovery.
“We’ve had over 60 total losses to date,” he shared. “That’s a record for us — and it’s still coming in. We have clients in the Palisades who don’t even know the status of their homes yet.”
That uncertainty underscores one of the most stressful aspects of wildfire recovery: homeowners often can’t confirm losses for days or weeks, even as claim deadlines and communication backlogs mount.
3. The FAIR Plan’s Unexpected Role as a Safety Net
One major theme Susman highlighted is the surprising importance of the California FAIR Plan, the state’s insurer of last resort.
For years, insurers like State Farm had been scaling back coverage in high-risk areas. In 2023, State Farm non-renewed roughly 70% of its clients in the Palisades, citing wildfire exposure — making it the second-highest ZIP code in the state for non-renewals.
Those homeowners were forced to seek alternative coverage, and many turned to the FAIR Plan. Ironically, that shift may have protected them in this latest disaster.
“If they’re with the FAIR Plan now,” Susman explained, “they have the backing of the FAIR Plan, its reinsurance, and its bonding authority. And if that’s not enough, the Plan can assess all admitted insurers in the state. In a strange way, those with FAIR Plan coverage today might actually be in a stronger position to collect for their damages than if they were still with State Farm.”
This insight reflects a crucial evolution in California’s insurance ecosystem: while the FAIR Plan was once seen as a temporary patch, it’s now becoming an essential backstop for thousands of households. Still, its solvency and long-term sustainability remain under scrutiny.
4. What Homeowners Should Do Right Now
Amid the chaos of evacuation, many homeowners are left wondering what to do next. Susman’s advice was both practical and reassuring:
“First, take a deep breath. It’s horrible, no question about it. But this is why you have insurance — this is the proving ground.”
Here are the key steps he outlined for those filing fire-related claims:
✅ 1. File Early — Even If You’re Unsure
“File your claim sooner rather than later,” Susman urged. “Claims are processed first-come, first-served, and carriers are already overwhelmed. Even if you’re not sure about the extent of damage, file now — you can always withdraw later if needed.”
✅ 2. Document Everything
Once it’s safe, take photos and videos of damage, including structural loss, smoke infiltration, and personal property. Keep a running log of items lost or damaged.
✅ 3. Contact Your Broker or Agent Directly
Agents can help guide claims, coordinate with adjusters, and ensure that temporary housing, emergency payments, and additional living expenses are properly requested.
✅ 4. Request Advances
Most insurers can issue emergency advances for lodging, clothing, and essentials — even before an inspection occurs.
✅ 5. Keep Detailed Records
Track every communication with your insurer — names, dates, and claim numbers — and save receipts for all related expenses.
These steps not only speed up claim processing but also strengthen the homeowner’s position if disputes arise later.
5. Why Many Californians Are Still Underinsured
Despite these safeguards, one of the biggest challenges facing wildfire victims is underinsurance.
Homeowners who purchased policies years ago may find their coverage limits no longer reflect today’s skyrocketing rebuilding costs, which have surged 30–50% since the pandemic.
Without Extended or Guaranteed Replacement Cost endorsements, many will face significant out-of-pocket gaps — even if their homes are a total loss.
Susman’s long-standing advice has been consistent:
“Review your policy annually. Don’t assume your dwelling coverage will rebuild your home at today’s prices. Make sure your limits — and endorsements — reflect reality.”
6. The Emotional and Financial Toll
The fires have exposed not only physical vulnerabilities but emotional ones as well. For families who’ve lost homes — or discovered they lack adequate insurance — the experience is devastating.
Susman’s empathy for his clients was clear:
“It’s easy to talk about policies and coverage from a distance. But when you’re standing next to someone whose home is gone, those numbers suddenly have faces and families attached.”
This human element underscores why education and preparation are critical. Knowing how your coverage works before disaster strikes can make the difference between recovery and financial ruin.
7. The Bigger Picture: California’s Fragile Insurance Market
While individual claims dominate the headlines, the fires also spotlight broader systemic issues.
California’s insurance market remains in a state of flux, with carriers wary of reentering fire zones and regulators balancing affordability with solvency. The Sustainable Insurance Strategy, enacted earlier in 2024, is beginning to modernize rate approvals and risk modeling — but its effects will take time to materialize.
For now, the FAIR Plan and smaller regional carriers are carrying much of the burden — a precarious position that highlights the need for ongoing reform.
“We’re seeing the system being tested in real time,” Susman said. “If these policies pay out smoothly and carriers can survive it, it’ll prove that California’s reforms are finally moving in the right direction.”
8. Lessons for Every Homeowner
Even for those outside the immediate fire zones, the lessons are universal. Every homeowner in California — and increasingly across the U.S. — should take time to:
- Review their insurance policy annually — focusing on coverage limits and exclusions.
- Update home inventories — especially for high-value or unique items.
- Consider additional endorsements for rebuilding cost, landscaping, or code upgrades.
- Create digital backups of policy documents, receipts, and photos.
- Develop an evacuation and communication plan for family safety.
These proactive steps don’t just prepare homeowners for wildfires — they protect against earthquakes, floods, and other growing climate risks.
9. The Path Forward: Preparedness and Resilience
The California fires are a stark reminder that natural disasters are no longer seasonal — they’re structural.
As climate change accelerates, homeowners, insurers, and regulators alike must rethink how coverage is priced, managed, and delivered. The key lies in balancing realistic risk assessment with consumer accessibility — ensuring that insurance remains both available and affordable in the nation’s most disaster-prone state.
Susman’s closing message offered a blend of realism and resilience:
“We can’t control the fires, but we can control how prepared we are. File your claims, review your coverage, and remember — insurance isn’t about fear. It’s about recovery.”
Conclusion: Hope in the Ashes
While California’s wildfire crisis has revealed painful vulnerabilities, it has also showcased the strength of community, the value of preparation, and the critical role of insurance professionals who stand with their clients through the worst moments of their lives.
For homeowners facing the aftermath, help is available — but speed, documentation, and communication are everything.
And as Susman’s experience makes clear, no one is immune to disaster — but with the right preparation, everyone can rebuild.
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