California FAIR Plan Denial of Smoke/Soot Damage Litigation

The California FAIR Plan Association was established to provide California homeowners with fire insurance coverage when homeowners are unable to find insurance in the traditional marketplace. Under the California Insurance Code, all such policies are required to provide a minimum scope of coverage which includes, among other things, coverage for all damage caused by smoke and soot. However, the California FAIR Plan recently has denied numerous claims seeking coverage for remediation costs arising from smoke and soot damage. A recent California state court decision determined that California FAIR Plan denial of claims for smoke and soot damages breached its obligations under the Insurance Code in denying such claims.

Property owners who were insureds under property insurance policies issued by the California FAIR Pla and who have been denied coverage for damages caused by smoke and soot as outside the coverage of the policy may be eligible to pursue legal action against the California FAIR Plan. Our firm has represented numerous individuals and/or companies who suffered property damage arising from fires. Additionally, we have partnered with a California firm to pursue these claims. We are currently reviewing and accepting claims against California FAIR Plan arising from the denial of claims for coverage for smoke and soot damage against California FAIR Plan property/fire policies.