The National Oceanic and Atmospheric Organization (NOAA) has predicted a potentially record El Niño storm pattern, affecting California and points eastward along a southern track. February and March could see the most rain events, but the weather pattern would affect weather through early May.

Adding to the significance of El Niño is the fact that California has experienced a drought since 2012 according to the Palmer Drought Severity Index. The change from an extreme drought to a major El Niño will increase the consequences of the weather change.

Insurance claims are expected to increase with the much-needed rainfall, as water intrusion becomes a major issue over the next few months. Some insurers may back away from the market in certain locales, while those with existing policies will see claims for alleged construction defects that existed but were undiscoverable since waterproofing mechanisms were not tested during the drought. They will be sorely tested by El Niño.