This is a simple question regarding the date of loss. Policy in force: 08/06/2020 – 08/06/2021 *Wildfire occurred in September 2020 which created a burn scar just above the insured location. No damage from the actual fire. On 09/14/2022 there is a landslide/mudflow which caused significant damage to the dwelling. The policy was not in force on the date of the landslide/mudflow (policy cancelled 08/06/2022 for non-payment). We have already established the proximate cause is fire (wildfire from September 2020). If we use the date of the mudflow (actual inception of damage) there is no policy in force. If we use the date of the wildfire there would be coverage as it is within the policy period. Which is the proper way to proceed?
California Subscriber
While California is an efficient proximate cause state, that relates to the cause of loss only, and not the date of the damage.
The conditions section of your policy states: 1. Policy Period. This policy applies only to loss which occurs during the policy period.
In order for the policy to provide coverage for the loss, the damage must occur during the policy period. We acknowledge that it can take years for a burn scar to recover, but that does not grant coverage when the policy is not in force at the time of loss. A policy either is or isn't in force at the time of loss, regardless of what the cause of loss is. An insured can't go back to before the policy cancelled and say that conditions under the coverage period grant coverage after the policy cancels. Coverage is predicated on when the damage occurred, not when a covered peril can be associated with the covered premises. The damage did not occur when the policy was in force – the damage occurred later; therefore there is no coverage in your situation. We feel for your insured.