Storm and Flood Insurance for Orange County Coastal Homes

Newport Beach declared a local emergency after coastal flooding inundated streets on the Balboa Peninsula. City crews rebuilt sand berms and operated pumps. The extent of property damage was not immediately known.

We advise checking your flood coverage before the next storm. The California Department of Insurance recommends assessing your flood risk and determining whether you need coverage, including in areas traditionally considered low risk.

Standard homeowners insurance does not cover flood damage, according to the California Department of Insurance. The department also says homeowners and commercial policies typically exclude mudslide, debris flow and similar disasters.

The Federal Emergency Management Agency explains that flood insurance is a separate policy that can cover buildings, their contents, or both.

A National Flood Insurance Program policy will take effect 30 days after it is purchased, according to the California Department of Insurance. The department describes an exception when you buy a house in a designated high risk area and receive a mortgage loan from a federally regulated lender. In that case, the lender must require flood insurance, and the policy takes effect immediately.

The Federal Emergency Management Agency also identifies waiting period exceptions involving coverage required by a government backed lender or a community flood map change.

Flood policies generally exclude losses caused by earth movement, even when a flood causes that movement, according to the California Department of Insurance. The department gives destabilization or movement of land resulting from accumulation of water as an example.

The department distinguishes mudflow from landslides, slope failures and saturated soil moving down a slope. It describes mudflow as a river of liquid and flowing mud on normally dry land, such as earth carried by a current of water.

The California FAIR Plan currently does not cover storm related damage unless the consumer has purchased a supplemental difference in conditions policy from another insurance company, according to the California Department of Insurance.

For complex National Flood Insurance Program cases or issues, the Federal Emergency Management Agency directs policyholders to their agent or the Office of the Flood Insurance Advocate.

For insurance questions or a dispute with your insurance company, the California Department of Insurance offers consumer assistance. The department does not regulate the National Flood Insurance Program, which is a federal program.

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