California homeowners are feeling abandoned by the state’s FAIR Plan after their smoke damage claims were denied.
What’s happening?
Certain homeowners are insured by California’s FAIR Plan, which purports to provide basic fire insurance for high-risk houses that other insurers refuse to cover. However, numerous people reported that the plan illegally denied smoke damage claims, according to Realtor.com.
Earlier this year, the state’s Department of Insurance wrote in a complaint that the FAIR Plan was “systematically denying and limiting smoke damage claims from wildfire survivors.” This happened on the heels of the devastating Eaton and Palisades wildfires.
“I’ve spoken with wildfire survivors who would rather lose their homes to flames than endure the stress and confusion of navigating smoke damage claims,” Insurance Commissioner Ricardo Lara said in a statement at the time. “This is unacceptable.”…