Understanding Insurance Coverage for Floods and Mudslides in Wildfire-Affected Areas
The Urgent Need for Awareness in California
With the approaching atmospheric river and sustained rains increasing the risk of mudslides, Insurance Commissioner Ricardo Lara stresses the importance for Californians, especially those in wildfire-affected areas, to understand their insurance coverage. Following recent wildfires, hillsides are left vulnerable to flash floods and debris flows, putting homes, roads, and infrastructure at risk.
The Impact of Wildfires on Landscapes
Wildfire-scorched landscapes, often referred to as “burn scars,” leave hillsides vulnerable to flash floods and debris flows. Without vegetation to absorb rainfall, water rapidly runs off, and extreme wildfire heat can create a water-repellent soil layer, further amplifying the risk. Even light rain can trigger dangerous flooding, especially in steep areas. Homes, roads, and infrastructure near recent burn areas face heightened danger with little warning. Understanding your insurance coverage can provide crucial protection.
The Case of the Montecito Mudslide
Consider the devastating Montecito mudslide that followed the Thomas Fire in January 2018, which claimed 23 lives and caused over $421 million in damage, according to the Department of Insurance. This tragedy underscored the necessity for clear insurance policies and consumer awareness. In response, the Governor enacted a new law to help prevent confusion about coverage following such disasters.
The Dependence of Roles of Insurance Policies
Many policyholders are unaware that homeowners’ and commercial insurance policies typically exclude flood, mudslide, debris flow, and other similar disasters— unless they are directly or indirectly caused by a recent wildfire or another peril covered by the applicable insurance policy. The Department of Insurance has provided a fact sheet to help consumers understand what their policies cover.
Tools Needed
Commissioner Lara urges consumers to prepare for the winter storm season by:
- Performing a home inventory using a smartphone to record belongings and store scans of important documents
- Locating and securing insurance papers or uploading them to an online location
- Considering comprehensive auto insurance
- Visiting the Governor’s Office of Emergency Services (CalOES) “winter wise” web page
- Exploring supplemental flood insurance options
Key Points in the Press Release
Mudslide coverage
- Mudslide and debris flows are covered if they result from recent wildfires.
- Special flood insurance considerations are available.
- Flood insurance may need to be purchased in addition to homeowners’ insurance.
Preparing for the Winter Storm Season
Taking Precautions
| Preparation Step | Description and Importance |
|---|---|
| Home Inventory | Use a smartphone to create a record of your belongings. |
| Secure Insurance Papers | Put your insurance papers in a safe place or upload them online. |
| Renters Insurance | For renters, protect your personal belongings with renters’ insurance. |
| Comprehensive Auto Insurance | Consider comprehensive auto insurance to protect your vehicle from flood damage. |
| Winter Weather Preparedness | Visit the Governor’s Office of Emergency Services (CalOES) “winter wise” web page for more tips. |
| Flood Insurance | Consider purchasing flood insurance for future disasters, with flood insurance taking effect 30 days after purchase. |
Did You Know?
Californians can refer to the Department of Insurance for help with understanding insurance coverage and claim questions.
How to Prepare for Future Storms
Flood insurance ensures you have adequate protection against further damages, if a home purchase does not require flood insurance by lender.
CalOES Emergency Resources
Immediate storm updates and emergency services are provided through Cal.Office Emergency Services.
EXTREME WEATHER
“Pro Tips” for Staying Safe
CalOES and Emergency Services are essential to ensure compliance. Make sure you review the scope of your policy.
Claim Questions to the Department of Insurance!
Consumers are reminded to call the consumer hotline at 800-927-4357 or use online chat or email resources to ask any questions in emergency situations.
Governor Lara Urges Californians
In the event of home repairs caused by flash flooding, contractors should:
Check the status of their insurance policy and report any suspicious findings.
Check the contractor’s license status.
SB 399 Role
- SB 399 requires local law enforcement to verify licenses in its sight.
- Local utility companies might also endorse this bill.
Do You have an Unlicensed Contractor”?
The passage is a recent reminder to the licensing requirements for contractors.
Much like the Department of Insurance ,California residents can continue to benefit from various insurance coverage.
Don’t forget to review your Insurance Document.**
Call-To-Action
Have any questions or insights to share? Let us know! Comment below and don’t forget to subscribe to our newsletter for more tips on staying safe and informed.
FAQ
Will I NFT be prepared against Disasters
No they are insurance covered by private and public entities, similar to California Flood Insurance.
Steep Hills Are Prone to Flood Damages?
Yes. Due to the surface conditions climate, some areas need word.
