A natural gas-line explosion outside of San Francisco has killedat least six people and severely damaged at least 53 homes,according to Risk ManagementSolutions (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 twomiles from the San Francisco International Airport. RMS said theexplosion "resulted in a fast moving gas fuelled fire which has sofar 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 FireDepartment, along with a media statement from the San Bruno FireChief, indicate that at least 53 homes have been severely damagedand up to 120 homes have sustained some damage. Local media reportsindicate that the fire is currently around 50 percent undercontrol.

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

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

A release from the company further stated that the damagedsection of the 30-inch steel gas transmission pipeline was isolatedand gas flow stopped to the affected area. Gas flow to the area gasdistribution pipes has also been stopped.

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

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

"Pacific Gas & Electric undoubtedly will be asked tocompensate the families of the victims who lost their lives or wereinjured in the explosion," said Reitz. "The liability insurers orself-insurers for the entities that ultimately are deemedresponsible will at a minimum be expected to defend the claims thatare filed against them. Of course, this assumes that the deaths didnot involve individuals who were working on the line at the time itexploded. That would involve workers' compensation or employers'liability insurance."

Reitz also said that she believes homeowners' coverage will betriggered by the event, and expects subrogation efforts toensue.

"Regardless of where liability ultimately is placed, the homesthat were damaged or destroyed should be covered by theirrespective homeowners' policies. The homeowners' policies will bethe first line of coverage for both the residences and theircontents. These homeowners' insurers undoubtedly will thensubrogate against whatever entities are deemed responsible for theexplosion and subsequent fire. The liability insurers for theresponsible parties will at the least have to defend these claimsin addition to those filed for the deaths and injuries."

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