Wedding Day Disasters & Earthquakes: Insurance You Didn't Know You Needed!

Published Date: 01/03/2025

Wedding Day Disasters & Earthquakes: The Overlooked Insurance You Didn’t Know You Needed

When most people think about insurance, they picture the big stuff — health, home, auto, or maybe even life insurance. But as Insurance Hour host Karl Susman reminds listeners, the most devastating financial setbacks often come from the unexpected gaps between those familiar coverages. In this episode, Susman walks through real listener questions about overlooked policies — from wedding insurance and cyber coverage to hobby farms and earthquake protection — exposing how easily consumers can find themselves unprotected in critical moments.

This discussion isn’t just a Q&A session; it’s a roadmap for navigating modern risk. As regulations evolve and lifestyles change, so do the exposures we face. Whether you’re planning a wedding, renting out a spare room, or worried about your data being hacked, these insights highlight the importance of customizing your protection.

1. Health Insurance Gaps: What Happens When Life Interrupts Work

The episode opens with a listener who’s taking medical leave and wonders how time away from work might affect their health insurance. Susman explains that in the U.S., most people receive health insurance through their employer — and stepping away can create unintended coverage gaps.

If the employer doesn’t continue benefits during unpaid leave, employees may need to turn to COBRA, which allows individuals to temporarily keep group health coverage after leaving employment. However, COBRA comes at a cost: employees must pay both their share and the employer’s share of premiums.

Susman also notes that while some people look for “gap coverage” — short-term policies to bridge the space between plans — these are limited and often don’t meet ACA (Affordable Care Act) requirements. The key takeaway: communicate with HR early and ensure you understand your continuation options before stepping away from work.

2. Mental Health Coverage: Reading Between the Lines

Another listener asked whether therapy and emotional wellness sessions were covered by their health plan. Susman’s answer underscores how mental health benefits remain confusing, even in 2025.

While parity laws have improved access to mental health care, coverage still depends on provider type (psychiatrist vs. therapist), treatment setting (inpatient, outpatient, or intensive outpatient), and whether the professional is in-network.

Susman emphasizes that wellness and prevention — like stress counseling or mindfulness programs — are rarely covered at the same level as treatment for diagnosed conditions. Consumers should carefully review their plan’s Summary of Benefits and Coverage (SBC) to understand what’s included. The broader message: mental health parity in policy language doesn’t always equal parity in practice.

3. Earthquake Insurance: The Coverage Too Many Californians Still Ignore

Transitioning from health to property, Susman brings up an often-ignored fact: standard homeowners insurance does not cover earthquakes. In California — a state defined by seismic activity — that’s a shocking gap.

He highlights GeoVera Insurance Company, a specialist provider offering flexible earthquake policies that can be customized to fit different budgets and risk profiles. Earthquake insurance, he stresses, isn’t a luxury — it’s a lifeline. With modern modeling predicting the inevitability of a major quake within the next few decades, financial preparedness is just as critical as physical readiness.

Homeowners should evaluate their deductible options, retrofitting discounts, and coverage for additional living expenses (ALE) — the cost of temporary housing after a major quake. As Susman puts it, “The question isn’t if the ground will shake again — it’s when.”

4. Farm and Hobby Farm Coverage: When a Home Policy Isn’t Enough

Next, a listener describes owning a small family farm that produces goods sold at local markets — a situation that falls into an insurance gray area. Susman clarifies that homeowners policies exclude agricultural or business activities.

Even small operations, such as hobby farms, need specialized farm or agribusiness coverage. These policies protect not only the dwelling and outbuildings but also livestock, equipment, and limited commercial liability from selling produce or goods.

Importantly, each insurer defines “hobby farm” differently, so transparency with your broker is essential. Underreporting activity — even unintentionally — can void a claim. If you sell goods for income, even part-time, you’re likely operating a business in the insurer’s eyes.

5. Cyber Insurance: The Fastest-Growing Risk You Haven’t Addressed

As digital threats accelerate, another listener wrote in about their neighbor’s experience with a data breach. Susman’s response was blunt: “If you’ve received a letter saying your data may have been leaked, assume it has.”

Cyber risk is no longer just a business problem. Personal cyber insurance — covering identity theft, fraudulent transfers, ransomware, and digital extortion — is increasingly available, though still underdeveloped.

While some homeowners policies offer limited cyber add-ons, standalone personal cyber liability policies provide far broader protection. The best versions include not just reimbursement for losses but also access to specialized case managers who assist victims through recovery, dispute resolution, and even credit restoration.

Susman’s forecast is clear: cyber will become the most common and costly claim of the next decade. Now is the time to get ahead of it.

6. Borrowed Tools and “Care, Custody, and Control”

A simple home improvement project led another listener to ask whether borrowed tools are covered if damaged. Susman uses this as a teaching moment to explain the legal concept of care, custody, and control — meaning you may be responsible for property you’re borrowing.

While some homeowner policies provide limited protection for borrowed items, coverage depends on whether the loss was accidental, negligent, or criminal (like theft). He also notes that commercial or rental equipment may require additional riders or separate policies. The fine print matters — especially if you borrow equipment frequently or operate a small business on your property.

7. Renting a Room: The Hidden Exclusion in Your Homeowners Policy

The rise of Airbnb-style hosting has blurred the line between personal and commercial use of property. A listener asked whether they could rent out a spare bedroom without changing their insurance. Susman’s response was unequivocal: “Yes, you need extra coverage.”

Standard homeowners policies generally exclude coverage for rental activity — even if it’s just one room. Hosting without notifying your insurer could invalidate your policy altogether. Specialized home-sharing endorsements or landlord policies are now available and designed for short-term rentals. The lesson: being casual about risk can lead to catastrophic gaps.

8. Wedding Insurance: Protecting the Big Day

Perhaps the episode’s most surprising insight comes from a bride-to-be asking about “wedding insurance.” Susman confirms that it exists — and it’s increasingly relevant.

Wedding insurance policies can reimburse couples if key events disrupt the day: severe weather, vendor no-shows, venue closures, or even last-minute cancellations. With the average U.S. wedding now costing more than $30,000, a modest premium can protect tens of thousands in deposits and contracts.

Susman adds a crucial caveat: vendors should also carry their own liability insurance, and couples should verify certificates before signing contracts. Wedding coverage is supplemental, not a substitute for professional accountability.

9. Moving Insurance: Don’t Let “By the Pound” Policies Fool You

Relocating homeowners often assume their belongings are covered while in transit. Susman dispels this myth. Standard homeowners policies limit off-premises coverage (often to 10% of total contents), and moving company coverage is typically based on weight, not value.

He advises always purchasing additional “full value protection” from movers, which reimburses repair or replacement cost rather than a per-pound calculation. For priceless or sentimental items, like antiques or family heirlooms, self-transport is often the safest bet.

10. Ordinance & Law Coverage: Rebuilding to Code

Finally, a listener asked whether their policy would pay for upgrades required by new building codes after a loss. Susman clarifies that standard policies only pay to restore the property “as was” — not to meet current regulations.

To fill this gap, homeowners should add ordinance or law coverage, which pays for the extra cost of demolition, debris removal, and reconstruction up to current building standards. This is particularly critical for older homes, where code updates (like electrical, seismic, or accessibility improvements) can easily add 20–30% to rebuilding costs.

Final Takeaway: Insurance Is a Living Contract

Susman closes with a reminder that insurance isn’t static. “Policies are contracts,” he explains, “and they don’t automatically adjust when your circumstances change.” Whether you’re moving, starting a side business, or planning a wedding, your coverage must evolve alongside your life.

The insurance industry, particularly in states like California, is undergoing rapid regulatory and market shifts. For consumers, this means vigilance is no longer optional. Every new venture, purchase, or personal milestone deserves a simple question: Does my insurance still protect me?

Because as this episode illustrates — whether it’s a wedding, an earthquake, or a cyberattack — the disasters that hurt the most are the ones you thought were covered.