Insurance Carrier Denies California City’s Flood Claim

August 8, 2011

City grants to community organizations in Capitola may be in jeopardy after the city’s insurance claim from two March floods was denied.

According to the Santa Cruz Sentinel, the city’s insurance carrier said the damage was not caused by a mechanical failure of a drainpipe as the city contends. The city is planning to appeal the denial.

Two flash floods during heavy rains in March forced the evacuation of a mobile home park and damaged city businesses.

Capitola has estimated its costs from the flooding at $1.3 million, but has so far not received any funding from the state.

Federal officials have denied California’s request for money to cover damage around the state related to the March storms.

Capitola has made additional community grants contingent on receiving at least $500,000 in disaster relief.

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