Super El Nino & Insurance: What You Need to Know

Consumers Should Take Steps Now to Protect Homes, Vehicles and Finances Before Winter Storm Risks Increase

SACRAMENTO, Calif. - The American Property Casualty Insurance Association (APCIA) is urging homeowners, renters and drivers across California, Arizona, Utah and New Mexico to prepare now for a potentially significant El Niño weather pattern that could bring heavier rainfall, flooding, mudslides and severe storms this winter.

Some forecasters are comparing current conditions to the powerful 1982-83 El Niño, which caused widespread flooding and billions of dollars in damage across California. While the extent of impacts remains uncertain, APCIA encourages consumers to review their insurance coverage and take practical steps to reduce risk before winter weather arrives.

"Recent years have shown that severe flooding can happen almost anywhere, often with little warning," said Karen Collins, APCIA vice president, property & environmental. "Consumers should not assume they are protected from flood losses simply because they do not live near the coast. Flooding remains one of the most costly natural disasters, yet many homeowners are uninsured for flood damage."

Flood Insurance Is Not Included in Most Homeowners Policies

A standard homeowners insurance policy generally does not cover flood damage. Homeowners and renters concerned about flood risk should speak with their insurance professional about flood coverage through the National Flood Insurance Program (NFIP) or a private insurer.

"Too many consumers learn after a flood that their homeowners policy does not cover flood damage," Collins said. "Now is the time to review your coverage and understand any gaps before the winter storm season begins."

Consumers considering flood insurance should act early. Most NFIP policies have a 30-day waiting period before coverage takes effect.

Conduct an Auto & Homeowners Insurance Checkup

APCIA recommends homeowners review their policies annually to ensure coverage reflects current rebuilding costs and individual needs.

Consumers should review:

• Dwelling coverage limits and replacement cost protection
• Personal property coverage
• Additional living expenses (ALE) coverage
• Deductibles and key exclusions
• Flood insurance needs
• Home inventory documentation, including photos and videos

Drivers should also consider maintaining comprehensive auto coverage, which may help protect against certain storm-related losses, including flooding and falling objects.

Additional Steps to Prepare

In areas recently affected by wildfire or located on steep slopes, heavy rainfall can increase the risk of mudslides, debris flows, and erosion. Consumers should take steps to reduce potential impacts and review their insurance protection with their insurance professional before winter storms arrive, including any questions about coverage, exclusions and policy limitations.

APCIA recommends homeowners:

• Inspect roofs and repair leaks
• Clean gutters, storm drains and other drainage pathways
• Improve drainage and install erosion-control measures where appropriate
• Use sandbags or other barriers to help divert runoff
• Maintain vegetation or other ground cover to help stabilize soil, particularly on slopes
• Secure outdoor furniture and equipment
• Prepare an emergency kit and family communication plan
• Store important documents safely
• Sign up for local emergency alerts

Preparation Today Can Reduce Financial Risk Tomorrow

While no one can predict exactly how El Niño conditions will unfold, preparing before storms arrive can help reduce disruption and financial loss.

"Whether you live on the coast, in the foothills or inland, it's important to understand your risks and review your insurance protection," Collins said. "The best time to prepare for severe weather and flood risks is before the first major storm arrives."

APCIA Resources: