The wildfires in California in 2017were devastating, but almost worse were the mudslides thatfollowed. Insurers doing business in California were aware thatthey would be facing significant losses and thousands of claims,but the magnitude of the damage only became available recently.

Related: California insurance commissioner issues formalnotice to insurers on mudslide coverage forhomeowners

According to California InsuranceCommissioner Dave Jones, as of March 31, 2018, insurers havereceived over 2,000 insurance claims totaling more than $421million in losses from the Montecito mudslide. More than 400 homesand businesses were destroyed or damaged, and 21 people died as aresult.

Jones issued a formal notice to all property & casualtyinsurance companies on Jan. 29 reminding them of their duty tocover damages from the recent mudslides and debris flows. Thenotice acknowledges that homeowners' and certain commercialproperty insurance policies frequently have exclusions for lossesfrom mudflow, debris flow, mudslide, landslide or other similarevents.

'Efficient proximate cause'

Under California insurance law, the exclusions are notenforceable if the facts establish that the wildfire, which is acovered peril, was the “efficient proximate cause” of thesubsequent flowing, mudflow, debris flow, mudslide, landslide, orother similar events.

Jones also stated in his notice that there is substantialevidence that the recent fires in California were the efficientproximate cause of the mudslides. In particular, the ThomasFire burned the vegetation on the mountains above Montecito,resulting in a downpour of soil and debris on the houses below whenheavy rains arrived.

Related: Mudslides ravage California coastaltown

“Recovering and rebuilding lives, homes and neighborhoods willtake time and it will be difficult. We will continue to do all wecan at the Department of Insurance to help residents navigate theclaims process and recover,” said Jones in a statement.

The department is encouraging residents and business owners inSanta Barbara and Montecito areas affected by the recent disasters,to file a claim with their insurance company. If consumers haveissues navigating the claims process, or they think their claim waswrongfully denied they are encouraged to contact the Department ofInsurance, 800-927-4357 or onlineat www.insurance.ca.gov for assistance.

Related: The aftermath of wildfires: Insurance coveragequestions answered