The remnants of Tropical Storm Rachel have left a trail of coastal and flash flood damage from Southern California to southern Nevada.
For many affected homeowners, that damage is unlikely to be covered by a standard property policy.
Storm Rachel made landfall over northern Baja California on Saturday before its remnants moved inland across the Southwest. The National Weather Service downgraded it to a post-tropical storm on Sunday.
The most severe property damage was along the coast. In Long Beach, large waves damaged a coastal bulkhead on the peninsula, sending water into homes and streets. City officials said building inspectors had red-tagged eight buildings containing 13 homes as unsafe. They put the cost of repairing the public infrastructure damage at $1.5 million to $3.5 million, to be paid from the city’s tidelands emergency reserves. Waves also tore apart a historic boardwalk, and oceanfront residents were evacuated.
In Newport Beach, coastal flooding began on Friday, and the city declared a local emergency and closed its piers. Oceanfront homes in both cities were partly submerged as heavy surf broke through sand berms built to hold back the water.
Inland, the storm’s remnants brought record rainfall to Las Vegas on Sunday. The city recorded 1.08 inches by 7 a.m., beating the daily record of 0.78 inches and exceeding the total for its entire monsoon season. Floodwaters reached areas near the Strip, stranded vehicles, and led to swift water rescues on the 215 beltway. Flood watches remained in place across parts of the Southwest on Monday as a separate weather system brought more rain.
No industry insured loss estimate had been published as of Monday.
The type of damage Rachel caused is the most important factor for insurers and policyholders. Standard homeowners and commercial property policies generally cover wind and storm damage, but exclude flood. The California Department of Insurance has noted that these policies typically exclude flood, mudslide and debris flow unless they are directly or indirectly caused by a recent wildfire or another covered peril.
That means wave damage to Long Beach homes and floodwater in Las Vegas properties will mostly fall under flood insurance, through the National Flood Insurance Program or a private flood carrier, rather than under homeowners policies. Take-up of flood cover in both Southern California and the Las Vegas area has historically been low, especially outside mapped high-risk flood zones. Many affected owners may have no cover for the water damage at all.
Vehicles are the main exception. Cars damaged by floodwater are generally covered if the owner has comprehensive auto coverage, which is likely to make auto one of the larger insured lines from this event.
For brokers in Southern California and Nevada, Rachel is a reminder that flood risk isn’t limited to hurricane-prone coasts. Forecasters have described the storm as a preview of what could come if California sees a strong El Niño winter, a pattern associated with heavy storms and coastal erosion.
Brokers should expect difficult conversations with clients who assumed their home policy would respond, and should look closely at claims where damage combines wind and water. For coastal properties, where the line between wave action and covered wind damage can be disputed, careful documentation will matter. Commercial clients near the Las Vegas Strip should check whether their policies include flood sublimits, and whether business interruption cover responds to flood-related closures or loss of access.
Storm Rachel also gives brokers a clear opportunity to raise private flood and NFIP cover with clients outside mapped flood zones before winter storms arrive.
