California Insurance Advisory Highlights Mudslide Risks After Wildfires

Following a significant atmospheric river event, California Insurance Commissioner Ricardo Lara has advised homeowners and renters to review their insurance policies due to elevated risks of mudslides and debris flows linked to recent wildfires.

These wildfires have weakened hillsides, creating 'burn scars' that increase runoff and the likelihood of flooding even during light rainfall. Insurance policies generally exclude coverage for floods, mudslides, and debris flows unless these events are directly or indirectly caused by a covered peril such as a recent wildfire.

This regulatory clarification follows lessons from the 2018 Montecito mudslide, which resulted in significant fatalities and damages exceeding $421 million, prompting strengthened legal protections regarding insurance coverage post-wildfires. Commissioner Lara emphasized preparedness through practical steps, including performing home inventories, safeguarding insurance documents, purchasing renters' insurance, and considering comprehensive auto and flood insurance to mitigate risks from similar disasters.

The Department of Insurance offers resources and consumer assistance for claims and policy questions, aiming to support affected Californians during the storm and throughout the winter season. This guidance addresses risk management, regulatory compliance, and claims navigation in the context of wildfire-related secondary disasters, underscoring ongoing market and regulatory attention to climate-linked hazards and insurance coverage complexities in California.