Policyholders whose homes survived the LA wildfires say soot and chemical residue have made them uninhabitable. (Credit: Amanda Bronstad/ALM)
California Insurance Commissioner Ricardo Lara has formed a new task force to create standards for smoke damage insurance coverage and clean-up.
The task force will evaluate and recommend best practices for inspecting and remediating smoke-damaged properties and develop statewide standards for insurers.
The announcement follows multiple lawsuits against California’s FAIR Plan alleging failure to investigate and pay smoke damage-related claims following the LA wildfires in January.
“For more than 30 years, California has lacked consistent statewide standards for investigating and paying smoke damage claims,” Lara said in a statement. “The result is confusion, delays and families forced to return to unsafe homes. Consumers are angry and rightly so. Californians deserve better — and this task force will help us create lasting solutions.”
Lara previously issued a bulletin in March requiring insurers to investigate and pay all legitimate smoke damage claims. He also sent a specific directive to the California FAIR Plan, requiring it to follow the same standards.
Since then, however, multiple policyholders have filed lawsuits against the FAIR Plan alleging illegal denial of coverage for smoke damage. Though their homes survived the fires, the policyholders say the interiors are coated in soot and chemical residue, rendering them uninhabitable.
Two weeks ago, another smoke damage lawsuit asked for a public injunction requiring the FAIR Plan to turn over its inspection records to all insureds.
According to the suit, the FAIR Plan has already faced smoke damage-related lawsuits for similar denials following other wildfires.
Lara said he’s appointing task force members now, and the group will be announced in the coming weeks.
“Smoke damage is real damage,” Lara said. “This is about health, safety and equity. Californians shouldn’t be forced to scrub soot off their walls or breathe in contaminated air just to get the help they’re entitled to. We are taking action — not to chase headlines, but to pursue clear, science-driven standards that protect people and their property.”
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