California Commissioner: Mudlside Damage Should Be Covered Under Efficient Proximate Cause Doctrine

Montecito residents who are hoping that insurance will cover damage to their homes from recent mudslides received a word of support from an important ally on Monday. California insurance commissioner Dave Jones issued a notice to insurers outlining his office’s position that they should be on the hook for that damage. Most homeowners’ insurance policies exclude coverage for mudslides. But they do cover fire-related damage. And Jones said under California law, when the facts on the ground show that a fire is the "efficient proximate cause" of a mudslide, that damage should be covered.