Business
Does insurance cover flooding and mudslides?
This week’s rain is turning streets into creeks and hillsides into mudslides. Homeowners across Southern California are facing major damage to their homes as a result — and in most cases, they won’t get any help cleaning up the mess from their insurance companies.
The standard homeowners’ policy does not cover losses from flood damage. Mudslides, mud flows and debris flows aren’t covered by typical homeowners’ insurance, either — though in particular circumstances, a homeowner’s policy might cover some of the damage from these events. Damage from falling trees or other wind-related impacts should be covered by homeowners’ policies, however, and the comprehensive coverage in an auto insurance policy should cover any damage to Californians’ cars.
Flood insurance has been underwritten by the federal government since 1968, as part of the National Flood Insurance Program. Homeowners have to purchase this coverage separately from the NFIP, which is administered by the Federal Emergency Management Agency, if they want their house to be protected from flood damage.
But Californians, by and large, haven’t ponied up for flood insurance. Out of the over 4.6 million flood policies in the country, 190,000 — just over 4% — are for California homes and businesses, according to data from the NFIP. In the eight Southern California counties under a state of emergency from the current storm, only 52,820 homes and businesses are covered.
Los Angeles County, home to nearly 10 million people, has just 14,580 flood insurance policies on the books.
The good news for policy-holders is that flood insurance covers most of the ways that dirt, water and debris can damage a home, as long as a major flood event is in progress.
Essentially, as long as mud or debris that damages the home is being carried by water, then flood insurance kicks in, said Janet Ruiz, director of strategic communication at the Insurance Information Institute, an industry group. The technical terms for these sources of destruction are mudflows and debris flows.
If a wildfire is involved in creating the mud or debris which then flows into a house, the fire coverage section of a typical homeowners’ policy can cover that damage. This kicked in during the deadly 2018 floods and mudflows in Montecito, which claimed 21 lives and led homeowners to file $388 million in insurance claims. Since the floods came on the heels of the massive Thomas fire in late 2017, that incident was deemed the “proximate cause” of the damage. But this specific set of circumstances is not common, and after a relatively sedate 2023 fire season, is unlikely to help many homeowners dealing with damage this week.
But mudslides — which have a technical definition distinct from the colloquial use of the word — are not covered by flood insurance, and are rarely covered by any kind of insurance policy at all. If water is picking up mud and debris and moving it into a home, that’s a mudflow in insurers’ books. But if the wet ground that a home is on slides away, shifting the house off its foundations (or causing it to fall off the side of a hill), then that’s a mudslide, and few policies will help the homeowner out.
“That’s ground movement, so that’s homes sliding off their foundation,” Ruiz said. “That’s not covered under a homeowners’ or flood insurance policy.”
The same goes for landslides, like the one that caused a cluster of houses in Rolling Hills Estates to pitch into a ravine in 2023.
But in a very specific scenario, a normal homeowners’ policy will cover some damage related to a mudslide or other earth movement: “If your neighbor’s house slides into yours, then their homeowners’ insurance would be liable to pay for your house,” Ruiz said.
Private insurers do offer flood coverage, and Ruiz said that it’s becoming more popular among the wealthy. The federal policy caps out at covering $250,000 in damage to a residential property and $100,000 for its contents. Even though flood losses are typically partial — Ruiz points out that California floods rarely affect the second stories of homes — some homeowners turn to the private market for more coverage.
Then there’s the basement issue. The NFIP does not cover most damage to basements, which pushes some homeowners to buy specific policies for their underground lairs. “There’s some pretty cool basements out there,” Ruiz said; “some people really trick them out.”
A gig drivers organization filed a lawsuit against Uber, alleging the company violated their rights by not providing a sufficient appeals process for deactivated accounts.
The lawsuit was announced Monday during a news conference by Rideshare Drivers United, an independent organization that represents more than 20,000 app-based drivers in California.
The organization, represented by attorney Shannon Liss-Riordan, said thousands of drivers have been terminated with little to no explanation, many of whom had worked as drivers for years and had high ratings.
“Drivers want to stand up for themselves and for basic fairness, and we can’t when there is no fair appeals process,” said Jason Munderloh, the chairman of the organization’s Bay Area chapter.
The lawsuit is the latest in a long battle between drivers and major ride-hailing service companies. Uber, a frequent target of lawsuits, has often faced claims of labor violations and vehicle collisions.
The tension could reach the November ballot, as the ride-hailing giant attempts to curb the laundry list of legal action. Uber is advocating for legislation that could cap how much attorneys can earn in vehicle collision cases.
Rideshare Drivers United said Monday that Uber is violating Proposition 22, which passed in 2020 and was upheld by the state Supreme Court in 2024. The legislation was a win for gig economy companies, allowing them to classify drivers as independent contractors rather than employees, provided certain requirements are met.
Uber is violating a clause in the proposition that requires the company to provide an appeals process for drivers who are terminated, the organization said.
“Uber has had six years of hiding behind Prop. 22 on issues favorable to it and ignored the law when it seemed inconvenient,” Munderloh said.
The lawsuit seeks a statewide judgment that Uber has failed to comply with Proposition 22, along with an opportunity for the thousands of deactivated drivers to appeal their terminations. The suit also seeks reactivation and back pay for drivers who were unfairly terminated.
Uber denied the claims in the lawsuit and reaffirmed that it offers a clear appeals process, in compliance with Proposition 22, a spokesperson told The Times.
“This is a baseless lawsuit by an opportunistic trial lawyer seeking to overturn Proposition 22 and the will of California voters,” the spokesperson said. “We’ll fight this publicity stunt in court while continuing to strengthen drivers’ voice on the platform.”
The company posted on a blog Friday that details its termination and appeals process. Every deactivated driver is given a reason for termination and offered a review process for more information. Drivers can then appeal, and the appeal is evaluated by a real person, according to the website.
Rirdeshare Drivers United said drivers are often terminated for vague reasons and are met with endless automated chatbots when inquiring about their terminations.
Drivers who request an appeal are either automatically denied or given the runaround without being offered an actual appeals process, Liss-Riordan said.
Devins Baker had given about 18,000 rides for Uber in eight years and boasted a 4.96 rating when his account was unexpectedly terminated just before Christmas in 2024. An automated message from the company claimed Baker had driven recklessly and offered no other information, he said.
He wasn’t told what resulted in his termination, but said that during his last ride, he had to drive defensively to avoid crashing into a vehicle that was merging recklessly on the freeway.
Baker had to hit the brakes to avoid the collision, and the passenger, who wasn’t wearing a seat belt, fell off the seat.
Baker was not offered a chance to appeal, he said.
Proposition 22 carved out a new classification for gig economy workers, affording them limited benefits, but not the rights granted to full-fledged employees.
The legislation received strong financial backing from Uber.
A group of drivers challenged Proposition 20 in 2024, claiming the law is unconstitutional because it interferes with the state Legislature’s authority to provide workers’ compensation protections to drivers. Their claims were ultimately rejected by the state’s highest court.
Ride-hail drivers have long raised concerns about low wages, minimal workplace protections and exploitative practices.
More recently, they have grappled with rising gas prices amid the war in the Middle East, which has driven some away from the ride-hailing business.
“The pay is not good in the first place. We do what we can to create a solid framework for ourselves and our families,” said Munderloh, who works as a part-time Uber driver. “It’s hard enough with how little they pay us, and then even that is taken away.”
Various gig companies, including Uber, Lyft and DoorDash, have said Proposition 22 is a crucial component of their businesses and threatened to shut down in the state if the proposition were struck down. These companies poured hundreds of millions of dollars into a campaign to sway voters on the proposition.
When Infowars, the website founded by the right-wing conspiracist Alex Jones, came up for sale two years ago, an unlikely suitor stepped up. The Onion, a satirical news outlet, planned to convert the site into a parody of itself.
That sale was scuttled by a bankruptcy court. Now, The Onion has re-emerged with a new plan: licensing the website from Gregory Milligan, the court-appointed manager of the site.
On Monday, Mr. Milligan asked Maya Guerra Gamble, a judge in Texas’ Travis County District Court overseeing the disposition of Infowars, to approve that licensing agreement in a court filing. Under the terms, The Onion’s parent company, Global Tetrahedron, would pay $81,000 a month to license Infowars.com and its associated intellectual property — such as its name — for an initial six months, with an option to renew for another six months.
The licensing deal has been agreed to by The Onion and the court-appointed administrator. But it is not effective until Judge Guerra Gamble approves it, and Mr. Jones could appeal any ruling. That means the fate of Infowars remains in limbo until the court rules, probably sometime in the next two weeks. Mr. Jones continues to operate Infowars.com and host its weekday program, “The Alex Jones Show.”
Mr. Jones had no immediate comment.
The battle over Infowars has been a long and fraught saga, and Mr. Jones — a notorious peddler of lies and invective — has used his bully pulpit for more than a year to crusade against The Onion’s efforts to take over the platform. The site is in limbo because of a series of defamation lawsuits against Mr. Jones filed by families of victims of the mass shooting in 2012 at Sandy Hook Elementary School in Connecticut, which Mr. Jones falsely claimed was a hoax.
People who believed his lies that the shooting was staged subjected the families to years of online abuse, harassment and death threats.
In 2018, the families of two Sandy Hook victims sued Mr. Jones for defamation in Texas, where Infowars is based, and relatives of eight other victims sued him in Connecticut. In 2022, a jury in Texas awarded the parents of one victim $50 million.
Mr. Jones declared bankruptcy later that year. A trial pitting him against the parents of a second victim was delayed indefinitely by that move. Later that year, a jury awarded the families and a former law enforcement official who sued Mr. Jones in Connecticut a total of $1.4 billion.
Mr. Jones appealed the Connecticut verdict, the largest defamation award in history, all the way to the U.S. Supreme Court. In October, the justices declined to hear the case.
To help satisfy Mr. Jones’s debts to the Sandy Hook families and other creditors, Judge Christopher Lopez of U.S. Bankruptcy Court ordered in mid-2024 that a court-appointed trustee sell off equipment, intellectual property and other assets owned by Free Speech Systems, Infowars’ parent company.
In late 2024, a sealed-bid silent auction drew only two contenders: The Onion’s parent and a company associated with Mr. Jones. The trustee and the families chose The Onion’s bid, despite its potential to yield less cash than the rival company’s. Mr. Jones and his lawyers cried foul, and Judge Lopez intervened, saying that the process was opaque and that The Onion’s bid was not obviously superior. He rejected plans for a do-over of the auction, instead directing the families to seek a liquidation through Judge Guerra Gamble’s court in Texas, where the first defamation case was heard and won.
In August, Judge Guerra Gamble ruled that a court-appointed administrator would take over and sell Infowars’ assets, reopening the door to The Onion. “We’re working on it,” Ben Collins, the chief executive of Global Tetrahedron, wrote on social media on the same day as Judge Guerra Gamble’s ruling.
The Onion’s proposal, worth $486,000 in its initial six-month term, does little to satisfy the enormous damages awarded to the Sandy Hook families. The families have been fighting to collect since Mr. Jones filed for personal and business bankruptcy. Mr. Jones is expected to lose access to his studio and equipment as part of the deal, Mr. Collins said.
The Onion plans to turn Infowars into a comedy site with satirical echoes of the fringe conspiracy theories that Mr. Jones is known for. Tim Heidecker, one of the comedians behind “Tim and Eric Awesome Show, Great Job!” on Cartoon Network’s Adult Swim, has been hired to serve as “creative director of Infowars.” He said he initially planned to parody Mr. Jones’s “whole modus operandi.”
Mr. Heidecker has been working on his impression of Mr. Jones. But eventually, when that joke gets old, Mr. Heidecker hopes to turn Infowars into a destination for independent and experimental comedy, he said.
“I just thought it would be just a beautiful joke if we could take this pretty toxic, negative, destructive force of Infowars and rebrand it as this beautiful place for our creativity,” Mr. Heidecker said in an interview. During a recent trip to Philadelphia, he traveled to the Liberty Bell to film a video in character as the new creative director of Infowars.
“The goal for the families we represent has always been to prevent Alex Jones from being able to cause harm at scale, the way he did against them,” said Chris Mattei, the lawyer who argued the Connecticut families’ case in court. The deal with The Onion promises “to significantly degrade his power to do that.”
The Onion also plans to sell merchandise and share the proceeds with the Sandy Hook families.
“We are excited to lie constantly for cold, hard cash, but this time in a cool way, and we’ll make sure some of it gets back to the families,” Mr. Collins said.
While broadcast programming is “out of my lane,” Mr. Mattei said, “satire and humor can be universal. If their programming can be of interest to Jones’s former audience, and help bring them out of the dark, that would be wonderful.”
In the meantime, the company has been filming satirical videos in antipation of the court’s ruling. One of them features a fictional anchor from the satirical Onion News Network, “Jim Haggerty,” who defects from the mainstream media to become a conspiracy monger. He will be played by the actor Brad Holbrook.
“For 35 years, I was part of the problem,” Mr. Haggerty intoned in a dramatic trailer released by The Onion. “But now, I’m free of my corporate shackles, and my only business is freedom.”
Apple, one of the world’s most valuable companies, is getting a new chief executive, marking a new chapter in the story of what has become arguably the most influential company in consumer technology.
The Cupertino, Calif., smartphone maker said Monday that John Ternus, senior vice president of hardware engineering, will become Apple’s chief executive on Sept. 1.
Tim Cook, who has served as chief executive for roughly 15 years, will become executive chairman of the company’s board of directors, the company said. He was long expected to step down soon.
Under Cook’s leadership, Apple’s market capitalization grew to $4 trillion from about $350 billion, according to the company. Its revenue ballooned from $108 billion in fiscal year 2011 to more than $416 billion in fiscal year 2025.
Apple also expanded its business under Cook’s tenure, including its presence in entertainment with Apple TV and Apple Music. People also use other services such as Apple Pay and iCloud to store their photos, videos and other content.
The leadership transition marks a new era for Apple, which turned 50 years old in April. The company has revolutionized technology, selling popular consumer electronics including iPhones and smartwatches.
But the company has lagged behind as its rivals such as OpenAI, Google, Meta and more move quickly to dominate the artificial intelligence race. It has also had to grapple with tariffs and criticism for manufacturing its products in other countries, such as China and India, during President Trump’s second term.
“These will be big shoes to fill and the timing of Cook exiting stage left as CEO could make sense but also creates questions. Apple is making a major transition on its AI strategy, and longtime CEO and legendary Cook leaving now is a surprise,” Dan Ives, an analyst with Wedbush Securities, said in a statement.
In a statement, Cook expressed gratitude for his time leading Apple. The 65-year-old succeeded chief executive and co-founder Steve Jobs in 2011 after he passed away from pancreatic cancer.
“John Ternus has the mind of an engineer, the soul of an innovator, and the heart to lead with integrity and with honor,” Cook said in a statement. “He is a visionary whose contributions to Apple over 25 years are already too numerous to count, and he is without question the right person to lead Apple into the future.”
Ternus was widely expected to be next in line as chief executive.
In a statement, he said he’s worked at Apple for nearly his entire career, including under Jobs. He described Cook, who will work with him during the transition, as his mentor.
“I am humbled to step into this role, and I promise to lead with the values and vision that have come to define this special place for half a century,” Ternus said in a statement.
Ternus has served as Apple’s senior vice president of hardware engineering since 2021, working on new products such as the iPad and AirPods. Before that role, he was on Apple’s product design team in 2001 before becoming vice president of hardware engineering in 2013, according to the company.
“Ternus’s work on Mac has helped the category become more powerful and more popular globally than at any time in its 40-year history,” Apple said in its news release about the transition.
In the fiscal year ending in September, Apple reported revenue of $416 billion and a net income of $112 billion. Worldwide, there are more than 2.5 billion active Apple devices.
Apple’s stock was down less than 1% in early after-hours trading, changing hands at around $271 a share.
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