(Part 4 of 6) Mastering California Insurance: Insights, Tips & Listener Q&A

From Insurance Hour · 3:58

Show by Karl Susman

When You Become the Risk: Understanding How Insurers Evaluate You — Not Just Your Property — in California's Insurance Market California's homeowners are facing a crisis unlike anything the state has seen before. Between wildfire losses, soaring reinsurance costs, and rigid regulations, many insurers have stopped writing new business or are non-renewing policies altogether. For consumers, that's left one big, frustrating question: "Is my home too risky to insure — or am I the risk?" In a recent episode of Insurance Hour, industry expert Karl Susman addressed this very issue after a listener wrote in describing a difficult situation: She had lost a second home to a wildfire, and her claim was still open. When she tried to renew the policy on her primary residence, her insurance company refused — despite that home being located elsewhere. "Seems no admitted carrier will cover my primary home due to the risk," she said. "Is it possible that insurers view me, not my property, as the risk? And is that even legal?" Susman's answer? Yes, it's possible. And yes, it's legal. But there's more to the story — and understanding it can help homeowners navigate California's tightening insurance market more effectively. Step One: The Two Sides of Underwriting — You and the Property Susman began by explaining how insurers make decisions about coverage. When you apply for a policy, the company doesn't just look at your house — it looks at you, too. "When you are purchasing property insurance, there are two factors that the insurance industry looks at," he said. "They're going to look at that property, and they're going to look at you." The property side includes familiar factors: The home's location and wildfire exposure The year it was built and type of construction Its size, roof type, and updates Prior claims made on that specific property The personal side includes your insurance history: How many claims you've made in the past What types of claims they were How recently those claims occurred

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