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FMG Law Blog Line

Is Flood Insurance the Next Big Thing in California?

Posted on: April 19th, 2019

By: Matthew Jones

California’s winter has been quite wet given the significant amount of rain. With heavy rain comes flooding and mudslides. California is not used to either of those types of events; but maybe it should be. Recently, the Russian River flood in Sacramento, California has brought problems to residents in the region. Approximately 2,600 homes and businesses were damaged by the floods, as well as some automobiles. However, the flood problems do not stop there. Consumers are also running into insurance issues since traditional homeowners’ insurance does not cover flood damage.

So what should be done to protect your property from the next flood? The Department of Insurance answered that question by educating consumers on the need to purchase flood insurance. One thing to keep in mind, however, is that flood insurance typically does not take effect for 30 days. Also, there are various exclusions to coverage, including for earthquakes, landslides, land subsidence, sinkholes, destabilization or movement of land from water accumulation, or gradual erosion. So while flood insurance may provide some peace of mind in the event of a flood, potential property damage may not be covered in full.

Given the Department of Insurance’s press releases on the topic, as well as the constant and unpredictable climate change, it is likely that the amount of flood insurance policies issued will only increase.

If you have any questions or would like more information, please contact Matthew Jones at [email protected].

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