California FAIR Plan Faces Lawsuit Over Allegedly Inadequate Wildfire Policies

Homeowners claim the state-backed insurer illegally denied smoke damage claims, leaving homes unsafe and unsanitary.

The lawsuit, filed in Alameda County Superior Court, represents over 350,000 policyholders.
Plaintiffs argue the FAIR Plan's policies fail to meet state coverage requirements for smoke damage.
The California Department of Insurance previously identified numerous violations in FAIR Plan's practices.
The FAIR Plan allegedly misled regulators and policyholders about coverage changes to maximize profits.
State regulators are working on new rules to stabilize California's home insurance market amid increasing wildfire risks.