August 19, 2023 - LOS ANGELES — With areas of California currently mobilizing ahead of Hurricane Hilary, Insurance Commissioner Ricardo Lara is urging Californians to understand how their property insurance covers potential damage from wind, rain, and flooding.

Most homeowners’ and commercial insurance policies include wind and storm damage. Damage caused from fallen trees also is generally covered under all standard homeowner policies. 

Many people may not be aware that homeowners’ and commercial insurance policies typically exclude flood, mudslide, debris flow, and other similar disasters — unless they are directly or indirectly caused by a recent wildfire or another peril covered by the applicable insurance policy. The Department of Insurance has posted a fact sheet for consumers to answer questions about what their policies cover.

Commissioner Lara issued a formal Notice to insurance companies earlier this year reminding them of their legal duty to cover damage from any future mudslide or similar disaster that is caused by recent wildfires that weakened hillsides. 

“This once in a lifetime storm could bring extreme rainfall and wind damage, so now is the time to prepare and understand your insurance coverage,” said Commissioner Lara. “I have alerted insurance companies to follow California law requiring they cover any mudslide, debris flow, or other damage caused by our recent wildfires so that people can recover quickly.”

Your auto insurance policy may cover your vehicle if it is damaged in a flood if you have purchased comprehensive coverage. While only liability coverage is required by law, you should consider comprehensive coverage to protect your vehicle in case of storm damage. 

The California FAIR Plan, the state’s insurer of last resort, currently does not cover any storm-related damage unless a consumer has purchased a supplemental “difference in conditions” (DIC) policy from another insurance company.

With any storm damage, you should call your insurance company to report it and take pictures and keep records of all clean up and repair costs.

Commissioner Lara also advises consumers to prepare for potential disaster by using their smart phone to perform a home inventory to create a record of their belongings and store scans of important documents that they can easily and remotely access after a disaster.

Visit insurance.ca.gov to find more information or to get help in filing an insurance claim. 

Source: CA. Dept. of Ins.