Wildfires dramatically change landscape and ground conditions, which can lead to the increased risk of flooding even with light rains. When normal and protective functions of vegetation are eliminated by a severe wildfire, the potential for significant erosion, flooding, and debris flows is magnified. Soon after the December 2017 Thomas Fire, residents and business owners of Montecito, and areas of Santa Barbara and Ventura County were faced with destruction as a result of flooding, mudslides, and mudflow.

Insurance Coverage Analysis

In California, the efficient proximate cause doctrine is used when loss is attributable to concurrent perils (both covered and excluded). Policy coverage comes down to the predominant cause of the loss — if the predominant cause is a covered peril, the loss is covered even if other non-covered causes contributed to it; but if the predominant cause is an excluded peril, the loss is not covered.

For Montecito property owners, if it is shown that the Thomas Fire — a covered peril — caused the subsequent mudslides, then damage caused by those events should be covered under a property owner’s insurance policy.

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