Recent deadly storms ravaging Southern California have left many residents grappling with significant property damage, exacerbated by the startling realization that a vast majority are not covered by insurance, according to the latest insights into coverage in the Golden State.
In a stark revelation, it has been disclosed that numerous homeowners affected by the calamitous weather are not shielded by insurance policies.
The predicament is particularly pronounced given that standard homeowners’ policies in California typically exclude coverage for losses stemming from flood damage.
This glaring gap in coverage has left a sizable portion of the populace vulnerable, especially in a region more accustomed to grappling with devastating wildfires than heavy precipitation.
Consequently, despite the peril posed by potential flooding, many residents opt against procuring additional flood insurance, citing the perceived minimal risk.
The tempest that swept through Southern California on Monday exacted a heavy toll, leaving approximately 710,000 individuals temporarily without electricity, as reported by the Associated Press.
Moreover, the deluge brought about by the storm shattered records for rainfall in the area. Tragically, authorities have confirmed three fatalities in Northern California attributed to the relentless onslaught of the storms.
Recent data from the National Flood Insurance Program (NFIP), a division of the Federal Emergency Management Agency (FEMA) responsible for flood damage coverage, paints a grim picture.
Only a meager 52,820 residences and businesses across the eight Southern California counties afflicted by the state of emergency possess flood insurance, according to the Los Angeles Times.
California Storms Unveil Insurance Gaps
These counties, encompassing Los Angeles, Orange, Riverside, San Bernardino, San Diego, San Luis Obispo, Santa Barbara, and Ventura, are home to a staggering 7.7 million households. Such scant coverage implies that less than 1 percent of households in these areas would be eligible to file claims for storm-related damages, CNN Business highlights.
However, even those fortunate enough to be covered by NFIP policies may find themselves inadequately protected. The policy imposes caps on coverage, limiting reimbursement to $250,000 for structural damage and $100,000 for personal property within the premises.
Moreover, damages resulting from mudslides or landslides, which frequently accompany heavy rainfall, fall outside the purview of flood insurance.
Social media platforms have become inundated with distressing footage from Southern California, underscoring the magnitude of the devastation.
Videos circulating online depict vehicles submerged beneath mudslides while residents toil tirelessly to clear debris obstructing roadways.
The plight extends beyond individual households to the state level, where the dearth of flood insurance policies is equally concerning.
The LA Times reports that California accounts for a mere 190,000 flood policies out of more than 4.6 million nationwide, constituting a meager 4 percent. In light of these revelations, Newsweek sought comment from NFIP but had received no response as of Tuesday morning.
Compounding the issue is the prohibitively high cost of NFIP coverage, averaging around $866 annually, as per POLITICO. Notably, unlike some states, California does not mandate flood insurance for federally backed mortgages, further exacerbating the vulnerability of homeowners.
Californians, already dealing with rising house insurance costs because of increased wildfire dangers, have further difficulties in this stormy climate. Many people have turned to the California FAIR Plan, the state’s insurer of last resort for fire-related losses, as a result of private insurers’ unwillingness to underwrite new policies in the state.