A class action lawsuit is being brought on behalf of more than 350,000 policyholders against the California FAIR Plan over smoke damage coverage.
Dylan Schaffer, an attorney representing the plaintiffs, told SiliconValley.com the idea behind the suit is to force the FAIR Plan to cover the full costs of cleaning homes inundated by smoke during a wildfire. He said the suit is not seeking monetary damages.
The case was filed in Alameda County court.
The California Department of Insurance determined in a May 2022 report that FAIR Plan policies didn’t meet state coverage requirements. Regulators identified 418 violations of the insurance code, according to the report.
Plaintiffs in the case argue the FAIR Plan misled regulators when it got approval in 2017 to update its policies to cover only direct physical damage caused by smoke, the Long Beach Press-Telegram is reporting.
Topics Lawsuits California Homeowners
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