Kerley Schaffer interview with the Washington Post: “These L.A. homeowners had coverage for fire. But not for the toxins left behind.”
Are You Covered? Wildfire Smoke Damage and Insurance Claim Nightmares in Los Angeles
Wildfires in California have become increasingly intense, leaving homeowners grappling with a hidden danger: toxic smoke residue. While many homeowners believe their fire insurance covers smoke damage, they're discovering a harsh reality – insurers often fall short, leaving homeowners to shoulder the burden of costly remediation.
The Problem: Toxic Aftermath
Recent fires in Los Angeles have left homes coated in hazardous materials, including ash, soot, and microscopic particles from burned buildings, cars, electronics, plastics, and household chemicals. These contaminants pose significant health risks and can linger for months.
The Insurance Battle: FAIR Plan Under Scrutiny
Many homeowners, unable to secure insurance on the private market due to high fire risk, turn to the California FAIR Plan, the state's insurer of last resort. However, policyholders are finding that the FAIR Plan often denies claims for the removal of these toxic substances, citing that their policies only cover "permanent physical changes" visible or detectable by smell. The policy and the claims handling is illegal. But that has not stopped FAIR Plan.
Homeowners in Limbo:
Residents in areas like Pacific Palisades and Altadena, where FAIR Plan enrollment has surged, are facing sometimes hundreds of thousands of dollars in repair costs. Many are caught in a frustrating cycle, battling with the FAIR Plan over coverage and even considering legal action. Some fire evacuees have started calling the insurer the "UNFAIR Plan."
Key Takeaways:
Limited Coverage: FAIR Plan refuses to cover the cost of removing all toxic chemicals, ash, and soot left by urban wildfires. The conduct is illegal.
Health Hazards: Researchers warn that these substances can create health hazards that remain for months. The science is clear, but FAIR Plan ignores it.
Legal Challenges: Policyholders are considering taking legal action to force the FAIR Plan to cover their financial losses.
What You Can Do:
Make sure to establish your full scope of damage: that means investing in competent testing, having a licensed contractor do a full review of the damage to your home, including windows, skylights, roof, and electrical systems, and creating a full contents inventory.
Document Everything: If you experience smoke damage, document all visible damage, take photos, and keep records of all communication with your insurance company.
Retain counsel: if you do not receive what you believe you are entitled to, retain competent and experienced counsel. Kerley Schaffer has litigated these issues for many years, and is pushing forward with bad faith lawsuits on behalf of homeowners cheated by FAIR Plan. We are ready to assist.
Want to learn more about your rights as a homeowner and what your insurance policy should cover?
Download the full article as a PDF for a comprehensive look at the challenges and potential solutions.
Wildfire, smoke damage, insurance, FAIR Plan, California, Los Angeles, homeowners, claims, toxic, remediation, policy coverage.