A natural gas-line explosion outside of San Francisco has killed at least six people and severely damaged at least 53 homes, according to Risk Management Solutions (RMS), which issued a report this morning.

The explosion took place at 6 p.m. PST Sept. 9 in San Bruno, Calif., which is about 10 miles south of San Francisco and two miles from the San Francisco International Airport. RMS said the explosion "resulted in a fast moving gas fuelled fire which has so far affected around 50 acres and is, as of 9:00 a.m. PST Friday, Sept. 10, an ongoing event."

RMS said that information from California's State Fire Department, along with a media statement from the San Bruno Fire Chief, indicate that at least 53 homes have been severely damaged and up to 120 homes have sustained some damage. Local media reports indicate that the fire is currently around 50 percent under control.

The gas main was operated by Pacific Gas & Electric, which posted the following message on its web site on Sept. 10:

"Our thoughts go out to everyone affected by this terrible situation. The priority right now is to help make the area safe. We have crews on the scene and are working with emergency officials. Though a cause has yet to be determined, we know that a PG&E gas transmission line was ruptured. If it is ultimately determined that we were responsible for the cause of the incident, we will take accountability."

A release from the company further stated that the damaged section of the 30-inch steel gas transmission pipeline was isolated and gas flow stopped to the affected area. Gas flow to the area gas distribution pipes has also been stopped.

UPDATE Sept. 10, 2010, 12:04 p.m.

When asked to comment on related insurance and liability issues concerning the gas main explosion, FC&S Editorial Director Diana Reitz, CPCU, AAI, offered the following analysis based on the information presented above:

"Pacific Gas & Electric undoubtedly will be asked to compensate the families of the victims who lost their lives or were injured in the explosion," said Reitz. "The liability insurers or self-insurers for the entities that ultimately are deemed responsible will at a minimum be expected to defend the claims that are filed against them. Of course, this assumes that the deaths did not involve individuals who were working on the line at the time it exploded. That would involve workers' compensation or employers' liability insurance."

Reitz also said that she believes homeowners' coverage will be triggered by the event, and expects subrogation efforts to ensue.

"Regardless of where liability ultimately is placed, the homes that were damaged or destroyed should be covered by their respective homeowners' policies. The homeowners' policies will be the first line of coverage for both the residences and their contents. These homeowners' insurers undoubtedly will then subrogate against whatever entities are deemed responsible for the explosion and subsequent fire. The liability insurers for the responsible parties will at the least have to defend these claims in addition to those filed for the deaths and injuries."

Click here to see photos of the disaster and ensuing devastation, courtesy of the Wall Street Journal.

Special Reports /

UPDATED: Gas Main Explosion Kills Six, Destroys Dozens of Homes

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