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California bill seeks to clarify mudslide insurance

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California bill seeks to clarify mudslide insurance

The California Senate approved a bill that seeks to clarify homeowners' insurance coverage following recent mudslides, the Insurance Journal reported.

Insurance policies generally cover damage caused by fires but not by mudslides. The mudslides in Santa Barbara were caused by a wildfire.

Although insurers have agreed to cover the damage caused by the incident, Sen. Hannah Beth Jackson, D-Calif. said the legislation would help mudslide victims avoid prolonged fights with insurers, according to the report.

Insurance companies mostly oppose the measure, saying that it might force them to cover losses "they wouldn't otherwise have to cover," requiring them to raise rates or decline to offer coverage in some areas.

The bill now heads to the Assembly.