Commissioner Lara alerts Californians living in wildfire burn areas across the state about coverage for floods and mudslides
News: 2021 Press Release
LOS ANGELES, Calif. — With a forecast of winter weather bringing the possibility of floods, mudslides, debris flows, and other disasters to recent wildfire burn areas throughout the state, Insurance Commissioner Ricardo Lara is alerting Californians to review their current insurance policies in order to protect themselves and their assets.
Commissioner Lara issued a formal Notice to insurance companies reminding them of their duty to cover damage from any future mudslide or similar disaster that is caused by recent wildfires that weakened hillsides. In particular, the United States Geological Survey (USGS) has projected increased likelihood of debris flow for fire-scarred areas of the state in the event of heavy rainfall.
Many Californians may not be aware 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 posted a fact sheet for consumers to answer questions about what their policies cover.
“Winter weather is bringing the threat of a second catastrophe to wildfire survivors like we saw in Montecito in 2018, and it’s critical to be prepared,” said Commissioner Lara. “Before disaster strikes, I am alerting insurance companies to their obligation to cover any mudslide, debris flow, or other damage that is caused by our recent wildfires so that people can recover quickly.”
The Montecito mudslide in Santa Barbara County in January 2018 that followed the destructive Thomas Fire claimed 23 lives and caused more than $421 million in damage, according to Department of Insurance data. Following that disaster, the Department of Insurance issued a notice to insurance companies about their requirement to pay mudslide claims that are directly or indirectly caused by the wildfires.
This time, due to the scale of the 2020 wildfires across the state, the Department of Insurance preemptively issued today’s Notice to all property and casualty insurance companies to ensure consumers are protected.
Commissioner Lara also urged consumers to take the following steps to prepare for the winter storm season:
- Consider flood insurance in addition to their homeowners’ insurance policy. The National Flood Insurance Program currently provides the majority of flood coverage written in the state, but private flood insurance is also available.
- Use their smart phone to perform a home inventory to create a record of their belongings and store scans of important documents that they can easily access.
- Locate their insurance papers and put in a safe place or upload to an online location.
- For renters, consider purchasing renters’ insurance to protect their personal belongings, which typically are not covered by their landlord’s homeowners policy.
- Consider comprehensive auto insurance, which would protect their vehicle in the event of flood damage.
- Visit the Governor’s Office of Emergency Services (CalOES) “winter wise” web page to read more tips to prepare for winter weather.
The Department of Insurance can help consumers with insurance coverage or claim questions. Contact us at our consumer hotline at 800-927-4357 or through online chat or email at insurance.ca.gov.
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- Link to notice
- Coverage for Flood, Mudflow, Mudslide, Debris Flow, Landslide, or other Similar Event After a Wildfire Fact Sheet
Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.