The California Department of Insurance published a press release urging residents to review their insurance coverage in preparation for El Niño storms, which are expected to be devastating.
California Governor Gavin Newsom proclaimed a State of Emergency in anticipation of the storms. The National Weather Service Climate Prediction Center found that El Nino is strengthening and has a greater than 90 percent chance of creating a very strong event during the Northern Hemisphere fall and winter. The Climate Prediction Center projected a 69 percent chance that the event will reach historic strength.
The Insurance Department urges residents to take steps to protect their families and property from potential flooding, mudslides, and other hazards. Residents in areas affected by recent wildfires may be particularly vulnerable to flooding, mudslides, and debris flows. Insurers are reminded that they must cover damage from mudslides that are caused by wildfires.
Residents should review their insurance policies to know what kind of coverage they have. Policies typically do not cover flooding. The NFIP provides the majority of flood coverage, but private flood insurance is also available. Flood insurance typically has a 30-day waiting period, so residents who wish to acquire the coverage should act fast. Comprehensive auto coverage typically covers flood damage, but insureds should review their policy.
The news release can be found here.
Ray Sugrim
Ray Sugrim is an Insurance Editor with FC&S Expert Coverage Interpretation, a division of National Underwriter Company and Arc Network. Ray is responsible for helping develop and edit content for subscribers. Ray is a St John’s University graduate with a degree in Risk Management & Insurance and is a CPCU candidate.