Jones Issues Formal Notice to Insurers Regarding Mudslide Coverage for Homeowners
Insurance Commissioner
However, Jones put insurers on notice that both the Insurance Code and case law have established the legal doctrine of "efficient proximate cause" which means if the facts show the Thomas Fire, a covered peril, was the efficient proximate cause of the subsequent mudflow, mudslides, debris flow, landslide, or other similar event, then damage caused by those events should be covered under the property owner's insurance policy.
"Californians have suffered greatly with all of the devastating losses from wildfires that struck the state in the last three months of 2017," said Commissioner Jones. "Preliminary indications are that the Thomas Fire burned vegetation which would otherwise have absorbed rainfall and held soils in place, which in turn resulted in the mudflows, mudslides, debris flows or landslides. If the evidence shows the Thomas Fire or another peril covered by a homeowner's insurance policy was the efficient proximate cause of mudflow damage, I expect insurance companies to step up and cover these financial losses."
Insurance Commissioner Jones is encouraging residents and business owners in
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