Park Fire victims sue insurance companies, FAIR Plan over denied smoke damage claims

CBS News

03-04-2025

BUTTE COUNTY -- A Butte County family is suing the California FAIR Plan and the underlining carriers after smoke damage claims made as a result of
the Park Fire
were denied.
Anne Yates and Patrick Proctor's nearly 13-acre property on Cohasset Road survived the Park Fire, which burned in Butte and Tehama counties in July 2024. Their home was still standing when they returned and appeared to be mostly unscathed.
When they went inside they realized something wasn't right. Smoke, ash, and soot left behind toxins, their lawsuit alleges, that have made it unsafe to move back in to their home.
"The Fair Plan simply did not conduct an adequate investigation and told them that they should clean the home themselves and move back in. And that advice is not only contrary to California law, it's dangerous," said Dylan Schaffer, the family's attorney with Kerley Schaffer, LLP.
Schaffer said to safely move back in to the home requires more than a "mop and a sponge", but rather, professional remediation and and extensive rebuild, nearly starting from the studs.
The home is covered by the California FAIR Plan. The plan is an insurance option that provides basic fire coverage for homeowners and businesses in high-risk areas who cannot obtain insurance through traditional carriers. The plan is made up of multiple insurers, all who are able to write property policies in the state.
When Yates and Proctor realized their home was damaged by smoke, they filed a claim with the FAIR Plan, and say it was denied.
"So, the problem with California FAIR Plan, is that their view — and this has been true since 2012, and it's true across thousands and thousands of wildfire claims — is that these houses are not damaged," Schaffer said. "They're dirty, and because insurance policies cover damage — not dirt — they don't want to pay to fix them, and those fixes can be quite expensive. And really, what this is about is their desire to save money in paying out insurance claims."
A spokesperson for the California Department of Insurance said they cannot comment on specific litigation but that the department expects it to stand by its customers.
In a bulletin released in March,
California Insurance Commissioner Ricardo Lara
said:
Homeowners statewide have shared with CBS that their smoke damage claims have been denied or partially denied by the FAIR Plan.
In recent reporting, CBS News Los Angeles reported that a FAIR Plan spokesperson said they approve all covered claims, including smoke claims, consistent with California law. However, they clarified that the FAIR Plan requires direct physical loss for there to be coverage.