SACRAMENTO – Insurance Commissioner John Garamendi today warned homeowners and businesses to take aggressive steps to guard against the potential damage caused by flooding, including purchasing flood insurance.

Noting that the rains that have soaked Sacramento and Northern California for weeks are set to resume on Friday, the Commissioner urged residents and business owners to consider buying a policy now to help protect their financial livelihood. Standard homeowners insurance policies do not offer coverage against flood damages, and flood insurance policies are not effective until 30 days after the date of purchase.

“We have seen several levee breaches during recent weeks that have threatened the safety and belongings of Californians,” said Commissioner Garamendi. “Don’t wait until it’s too late. Act now and protect yourself against financial disaster.”

Flood insurance can be purchased from any licensed insurance agent and is provided through the federal government's National Flood Insurance Program. It is required in most areas at high risk of flooding, however, development in both business and residential areas has put many homes and businesses in dangerous areas not yet required to have insurance. However, flood insurance does not provide coverage for damage caused by mudslides.

“Unchecked development has exposed us all to the massive cost of paying for the cost of a major flood,” said Commissioner Garamendi. “It’s high time that we begin considering the impact of our growth, and how best to pay for any resulting damage.”

For some time the Commissioner has pushed the idea of a national catastrophe insurance program that would cover all types of catastrophes, including earthquakes, fires, hurricanes, flooding, and more. The risk would be spread over the entire country, ensuring reasonable costs and participation by all who are affected. Last Fall he held a national summit in San Francisco to explore the idea with Insurance Commissioners from Illinois, New York and Florida.

Flood insurance is available from your insurance agent or through the National Flood Insurance Program at (800) 427-9662, or www.fema.gov/nfip.