Judge rules California's FAIR Plan must pay smoke damage claims
Briefly

A recent court ruling requires California's FAIR Plan, the state's home insurance provider, to address smoke damage claims adequately following the January wildfires. The Superior Court judge determined that the FAIR Plan violated state law regarding claims processing, noting that confusing language created barriers for plaintiffs. This decision, praised by the California Department of Insurance, aims to ensure fair compensation for wildfire victims. The regulator is investigating the compliance of FAIR Plan with state directives, calling for better claims handling procedures to support recovery efforts for affected individuals.
Judge Stuart Rice remarked on the challenges faced by wildfire victims, stating that the 'unlawful language' of the FAIR Plan contributes to underpayments of smoke damage claims.
Michael Soller emphasized the importance of fair claims handling, reaffirming that 'full and fair payment of wildfire claims to consumers is a top priority' for the California Department of Insurance.
The California FAIR Plan's statement acknowledged the ruling, asserting that 'burn damage and smoke damage claims' will now be processed in alignment with state law.
The lawsuit highlighted systemic issues within the FAIR Plan, exposing patterns of undercompensation for smoke damage and revealing widespread difficulties faced by homeowners post-wildfire.
Read at The Mercury News
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