Hurricane Hilary's course over the Pacific is illustrated here using the Saffir–Simpson scale. Although downgraded to a Tropical Storm once it reached Southern California, the event still dumped buckets of rain and caused flash flooding. (Credit Cyclonebiskit/Wikipedia Commons)

Hurricane Hilary brought buckets of rain, powerful winds, flooding and mudslides to the Baja California peninsula along with the Western and Southwestern U.S. this week. While the Category 4 storm may not have resulted in the magnitude of devastation unleashed by other recent storms such as Hurricane Ian (2022), Hurricane Ida (2021) or Hurricane Irma (2017), the resulting damage will nonetheless cause an uptick in storm-related claims, particularly in and around Los Angeles. Hilary weakened to a tropical storm by the time it reached the City of Angels. It become the first tropical storm to sack Southern California in more than 80 years. Thousands of flights were delayed or canceled because of the storm. Events were curtailed. And many people in the Los Angeles area hunkered down without power during the storm. Hilary ultimately claimed 4 lives, and damage estimates are still being tallied. It was the eighth named storm of the year and reached wind speeds of 145 miles per hour at its strongest. Such a storm is likely to highlight where and how consumers are sufficiently protected by insurance or facing a financial shortfall. "Small businesses without proper environmental insurance will likely find themselves at risk," David Corry, senior vice president and head of the environmental practice at Argo Group, said via email. "Despite environmental coverage being required for certain businesses, there are many that choose to not purchase it and simply opt out of coverage." Corry added that the types of businesses that are likely to face a coverage shortfall include manufacturers, agricultural operations, construction firms and real estate companies. And this could be doubly true in California, where insureds of all stripes struggle to afford the coverage they need in a state that's currently facing a capacity crisis. "Major concerns that stand out include those with hazardous material on-site such as solvents or chemicals in above ground storage tanks," Corry said. "From an Environmental perspective, there are hundreds of businesses at risk of serious exposure if these tanks were to get dislodged and cause property damage, business interruption, or bodily injury." Corry concluded that an event such as Hurricane/Tropical Storm Hilary highlights the strength of specialty lines coverage as a safeguard to prevent natural disasters from being the virtual end to a commercial enterprise. In light of current rebuilding efforts in California, the state's insurance leader released a statement urging policyholders to study up on their property insurance coverages, particularly as they related to wind, rain and flooding damage. "This once in a lifetime storm brought rainfall and wind damage, so it is crucial consumers understand their insurance coverage and know they have options and support," California Insurance Commissioner Ricardo Lara said in a press release issued on the heels on the tropical storm. "I have alerted insurance companies to follow California law requiring they cover any mudslide, debris flow or other damage that is caused by our recent wildfires so that people can recover quickly." Lara encouraged California residents who now have repair needs to consult his agency's website and staff for assistance filing a claim. Insureds in the Golden State also can call its Department of Insurance directly at 800-927-4357. See also: |

• Hurricanes: Where we've been, and where we're going
• Private carriers make headway in growing flood insurance market
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