San Diego OKs $6 million settlement with insurance companies for flood damage

San Diego will pay more than $6 million to a group of insurance companies that paid out property owners’ claims from January 2024 floods, after the City Council granted final approval Tuesday to a settlement.

It’s the first major settlement as the city litigates dozens of lawsuits over flooding that destroyed homes and displaced residents, most in the Chollas Creek watershed.

Separately from the insurers, thousands of San Diegans have sued the city, saying it caused the flooding and damage by failing to maintain its stormwater system. City lawyers have filed cross-complaints against some of them.

Under the settlement, 17 insurance carriers in four subrogation lawsuits will get a total of $6,326,330.75 from the city, according to a memo from the city attorney.

“The city settled with insurers first because that approach is standard in complex, large cases with numerous plaintiffs,” said a spokesperson for the city attorney. “The settlement represents a significant discount compared to the total amount the carriers paid.”

The city attorney’s office also said mediation sessions with individual flood victims are scheduled in the next month.

Tuesday’s vote to approve the insurers settlement was unanimous, 6-0, with council members Vivian Moreno, Raul Campillo and Marni von Wilpert absent.

Some council members said they haven’t forgotten about flood victims.

“We need to make sure we are continuing to remain focused on impact...