By Scott Vincent

Jan 27 - (The Insurer) - Heavy rain over the weekend has brought some respite for firefighters as they battle to contain the ongoing wildfires in Southern California.

However, the rainfall has also exacerbated the risk of mudslides and debris flow, presenting further risks to properties in areas where fires have largely wiped out vegetation.

Burning of vegetation that would previously have held the soil firm typically causes mudslides in the aftermath of major wildfires.

One notable example occurred in January 2018 when 128 homes were destroyed and another 307 damaged in Montecito after heavy rain triggered a mudslide.

In the aftermath of the January 2018 event and further losses from mudslides in 2023, the California Department of Insurance said wildfires could be regarded as a “proximate cause” for the mudslides, which are not typically recognised as an insured peril in California homeowners' policies.

More than 16,252 structures have now been destroyed by the wildfires, which began on 7 January. According to the California Department of Forestry and Fire Protection, 57,403 acres have now burned.

The Palisades fire remains the largest of the blazes to impact the region, having burned 23,448 acres. Other notable events include the Eaton fire (14,021 acres), Hughes fire (10,425 acres) and Border 2 fire in San Diego County (6,625 acres).

Modelled loss estimates for the wildfires range from $20bn to $45bn, with Moody’s RMS estimating $20bn-$30bn, KCC $28bn, Verisk $28bn-$35bn and CoreLogic $35bn-$45bn.