On September 19, 2025, the California Department of Insurance (CDI) issued a notice to homeowners and commercial property insurers regarding the coverage of flood, mudslide, and earth movement claims relating to recent wildfires.
The notice clarifies that under the "efficient proximate cause" doctrine, if it is established that a recent wildfire or another peril covered by the applicable policy was the efficient proximate cause of the damage resulting from subsequent events following the wildfire, such damage is covered by the policy regardless of any exclusion in the applicable policy.
Please see the notice for more information. For any questions regarding the notice, please contact Lisbeth Landsman-Smith, Senior Staff Attorney, at Lisbeth.Landsman@insurance.ca.gov or 916-492-3561.