With the recent floods along River Road & at the mouth of the Carmel River, potential mudslides in the hills and the constant threat of wildfires in California, now more than ever, it is important to review your current insurance policy to make sure you have adequate coverage. I just increased my replacement value after a conversation with my insurance agent. Based upon the cost of materials & a general increase in building costs, it was time for an upgrade. It's important to understand your policy. Many Californians may not be aware that homeowners' 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.
Standard exclusions include: flood, earth movement, earthquake, landslide or mudflow, settling, cracking, shrinking, subsidence or sinkhole, erosion, sinking, rising, shifting, expanding or contracting of earth.
In an effort to protect home owners, the Insurance Commissioner Ricardo Lara issued a formal Notice to insurance companies reminding them of their duty to cover damage from any future mudslide or similar disaster that is caused by recent wildfires that weakened hillsides.
Source: C.A.R. Virtual Advocate January 26, 2021