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CA Department of Insurance

California consumers reminded of dangers of flood damage

News: 2014 Press Release

For Release: October 20, 2014
Media Calls Only: 916-492-3566
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California consumers reminded of dangers of flood damage
During California’s Flood Preparedness Week, Commissioner urges homeowners to make sure they have the disaster coverage they need

SACRAMENTO, Calif. -Wet winter weather is coming and many people are unaware that most standard homeowner and commercial property policies do not cover flood or mudslide damage. Insurance Commissioner Dave Jones encourages residents to review their insurance policies and assess their individual needs. Residents need to determine exactly what their policies cover and determine if flood insurance is a suitable option for them.

"In California, any area can be affected by a flood or mudslide," said Commissioner Jones. "As we move into the rainy season, I urge homeowners to review their policies to see what is covered, assess their insurance needs and determine if flood insurance is aright for them. Consumers need to be prepared before disaster strikes and reduce the stress that severe weather may bring."

This week is California's Flood Preparedness Week. Depending on the location and the structure, floods have the ability to commit catastrophic damage to homes and businesses. Less than 2.5 percent of California residents and business owners have flood insurance. While not all Californians need flood insurance, all homeowners need to assess whether they are at risk for flooding, and what type of coverage is right for them. Home and business owners should also be advised that it generally takes 30 days for flood insurance to kick in, once a policy has been issued.

California's terrain is extremely diverse presenting many hazards areas which leave homes and businesses vulnerable to a natural disaster such as a flood or mudslide. Residents should also be aware that their homeowners insurance does not cover floods. The Department of Insurance has links to tools available on our public Website to homeowners and businesses looking to educate themselves on how at risk their location is as well as how to reduce their risk of loss in case of a flood.

Media Notes:

California Department of Insurance flood insurance fact sheet.

The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $310 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $469 million in claims and premiums. Please visit the Department of Insurance website at Non-media inquiries should be directed to the Consumer Hotline at 800.927.4357. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.

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