From my perspective working in property insurance, this is a flood, and many homeowners and businesses may be without insurance.
However Dave Jones (California Insurance Commissioner) has given formal notice to insurance companies of their duty to pay for "efficient proximate cause." What does this mean? Insurance companies would have to cover damages from the recent mudslides if it's determined that the cause of the mudslides was the burning of hillside and vegetation by fires.
Homeowners policies generally exclude flood, mudslide, debris flow and other similar events.
It would be great for these homeowners to recover home insurance companies. I have a feeling this is not the end of the story, so I'll keep an eye on it. It also seems like SB 917 may change the policy language of HO3 policies.
See the press release.