Eight months after the Palisades and Eaton wildfires in Los Angeles, commercial and residential policyholders continue to report unreasonably long delays, dubious denials, and conspicuously low settlements. Most prominently, the California FAIR Plan has continued to deny or narrow smoke claims based on a supposed “permanent damage” requirement, even after a Los Angeles Superior Court rejected and the Department of Insurance publicly condemned the practice of denying these claims without investigation.
Civil lawsuits out of Palisades and Eaton alleging breach of contract, bad faith, negligence and related theories continue to be filed against FAIR Plan.