Post-Wildfire Flooding: What Your Business Insurance Covers
By Crowley Law PC, Los Angeles Business and Insurance Attorneys
A flooded street with water forcefully gushing out from a manhole, due to heavy rainfall and a drainage system overflow.
Southern California’s recent wildfires have left lasting scars on the landscape, particularly in areas like Topanga, Malibu, Pacific Palisades, Pasadena, Altadena, Agoura Hills, Calabasas, and Ventura County. When the rains came, the lack of vegetation on fire-ravaged hills led to devastating mudslides, pushing debris into the ocean and causing widespread flooding. For businesses in these areas, the aftermath has been a double blow: first from the fires, and then from the water and mudslide damage.
If your business has been affected, you may be wondering: Does your business interruption insurance cover water and mudslide damage? At Crowley Law PC, we’re here to help you understand your coverage and navigate the claims process.
How Wildfires and Mudslides Impact SoCal Businesses
The sequence of wildfires followed by heavy rains has created unique challenges for businesses:
Mudslides and Debris Flow: Without vegetation to hold the soil in place, rain can trigger mudslides that damage property, block roads, and disrupt operations.
Flooding: Debris from mudslides can clog drainage systems, leading to flooding in low-lying areas.
Property Damage: Mud, water, and debris can destroy buildings, equipment, and inventory.
Forced Closures: Roads may become impassable, and businesses may need to shut down temporarily for cleanup and repairs.
Lost Revenue: Closures and reduced customer traffic can result in significant income losses.
Ongoing Expenses: Even when closed, businesses must still pay rent, utilities, and employee wages.
Does Business Interruption Insurance Cover Water and Mudslide Damage?
The answer depends on your policy. Here’s what you need to know:
Standard Policies May Exclude Flooding and Mudslides
Many business interruption policies exclude damage caused by flooding or earth movement (e.g., mudslides) unless you have additional coverage. This is especially important for businesses in fire-affected areas like Topanga, Malibu, Pacific Palisades, Pasadena, and Ventura County, where mudslides are a significant risk after wildfires.Water Damage vs. Flood Damage
Water Damage: This typically refers to damage caused by internal sources, such as burst pipes or leaking roofs. Most standard policies cover this type of damage.
Flood Damage: This refers to damage caused by external sources, such as overflowing rivers, storm surges, or heavy rainfall. This is usually excluded unless you have a separate flood insurance policy.
Mudslide Damage
Mudslides are often classified as “earth movement,” which is typically excluded from standard policies. However, if the mudslide was caused by flooding, you may be able to file a claim under a flood insurance policy.Wildfire-Related Coverage
If your business was already recovering from wildfire damage, your policy may cover additional losses caused by subsequent mudslides or flooding, depending on the language of your policy.
Steps to File a Business Interruption Claim After Water or Mudslide Damage
Review Your Policy
Understand your coverage, including any exclusions or limits related to flooding, mudslides, or earth movement. If you’re unsure, consult an attorney.Document the Damage
Take photos and videos of the damage to your property, inventory, and equipment. Keep detailed records of all losses.Calculate Your Losses
Work with an accountant to determine your lost income and ongoing expenses. Be prepared to provide documentation, such as profit and loss statements, tax returns, and invoices.Notify Your Insurance Company
Report the interruption and start the claims process as soon as possible. Follow their procedures and deadlines closely.Keep Detailed Records
Document all communications with your insurer, including emails, letters, and phone calls. This will help if there are any disputes later.Seek Legal Help if Needed
If your claim is denied, delayed, or underpaid, don’t hesitate to reach out to an experienced attorney. At Crowley Law PC, we can help you appeal the decision and fight for the compensation you deserve.
How Crowley Law PC Can Help
The combination of wildfires and subsequent mudslides has created a unique set of challenges for businesses in Topanga, Malibu, Pacific Palisades, Pasadena, Altadena, Agoura Hills, Calabasas, Ventura County, and surrounding areas. At Crowley Law PC, we specialize in helping businesses navigate complex insurance claims. Whether you’re dealing with water damage, mudslide damage, or a denied claim, we’re here to help. We’ll review your policy, gather documentation, negotiate with insurers, and file a lawsuit if necessary to ensure you receive fair compensation.
Final Thoughts
The aftermath of wildfires and mudslides can be overwhelming, but with the right preparation and support, you can recover and rebuild. If your business has been impacted by the fires, floods, or mudslides, don’t wait to take action. Contact Crowley Law PC for a free consultation and let us help you protect your business and secure your future.
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