The California Department of Insurance published a press release informing consumers of the flood and mudslide coverage available in their policies following the recent wildfires.
Commissioner Ricardo Lara wants to inform policyholders that insurers are legally required to cover floods and mudslides caused by wildfires. While these losses are typically excluded from a homeowners policy, if it is determined that a wildfire or another covered peril was the efficient proximate cause of flooding or mudslides, those losses must also be covered.
Wildfires can weaken the landscape and make it more vulnerable to flooding and debris flow. Since vegetation that would typically absorb some of the rainfall is destroyed in a wildfire, the risk of flooding increases further. The Department wants consumers to know what coverage is available, especially since an atmospheric river is expected to soon hit wildfire-affected areas, further amplifying the risk of loss.
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