California Department of Insurance: First Wildfire, Now Mudslides — Insurance on the Hook for Both

California Insurance Commissioner Ricardo Lara issued a bulletin last week reminding insurance companies that they are responsible for damages that come from mudslides in burn areas.

It’s a fair bet that the insurance companies already know their responsibilities but Lara wanted to send the message anyway. In this case, the burn area is Los Angeles and Los Angeles County and the historic damages from the recent wildfires that tore through the area. Lara said the coming colder, wetter weather means the brush and tree depleted hills will be fertile ground for mudslides.

“With the recent wildfires in Los Angeles County leaving communities vulnerable, and winter storms posing an increased threat, it’s critical for residents to understand their protections,” Lara said. “I am reminding insurance companies of their legal obligation to cover any mudslides, debris flows, or other damage resulting from these fires so that affected individuals can recover as quickly as possible.”

Lara noted that a lot of people aren’t aware that homeowners insurance, or commercial insurance policies, don’t cover flooding, mudslide and the flow of debris. Those events are only covered if they are directly, or indirectly, caused by a recent wildfire, or another disaster that is applicable to their policy.

Source link: California Department of Insurance — https://bit.ly/3EvlIsP