California homeowners are feeling abandoned by the state's FAIR Plan after their smoke damage claims were denied.

What's happening?

Certain homeowners are insured by California's FAIR Plan, which purports to provide basic fire insurance for high-risk houses that other insurers refuse to cover. However, numerous people reported that the plan illegally denied smoke damage claims, according to Realtor.com. 

Earlier this year, the state's Department of Insurance wrote in a complaint that the FAIR Plan was "systematically denying and limiting smoke damage claims from wildfire survivors." This happened on the heels of the devastating Eaton and Palisades wildfires. 

"I've spoken with wildfire survivors who would rather lose their homes to flames than endure the stress and confusion of navigating smoke damage claims," Insurance Commissioner Ricardo Lara said in a statement at the time. "This is unacceptable." 

The FAIR Plan has also been criticized for requiring proof of permanent physical damage before claims were paid out. This oversimplifies the effects of smoke contamination, which is toxic to residents' breathing.

Why is smoke coverage important?

It is important for families to obtain the critical smoke damage coverage they need to remediate their homes. When people inhale fine particulates from wildfire smoke, they expose themselves to a range of health risks. These include increased risk of stroke as well as lung and heart damage.

Insurance companies have increasingly deemed high-risk areas, especially wildfire-prone ones in California, as uninsurable. A number of insurers have either hiked up prices or dropped coverage altogether.

This puts homeowners in a vulnerable position as rising global temperatures have supercharged extreme weather events like wildfires in recent years. Human activity, such as dirty energy usage or pollution, contributes to this issue, meaning our behavior exacerbates these conditions.

Educating oneself on critical climate issues is a necessary first step in reducing our negative impact on our communities.

What's being done about smoke coverage?

While the FAIR Plan is providing a necessary service amid insurance woes, people are wary of empty promises. Homeowners have sought guidance in avoiding misleading services and companies. Luckily, state officials are stepping in.

What source of air pollution do you worry most about at home? Wildfires 😷 Gas stove 😮‍💨 Fireplace 🔥 Something else 🚬 Click your choice to see results and speak your mind.

The Department of Insurance is creating a smoke contamination task force to investigate and address the impacts of the residue. This group is also investigating complaints about insurance providers' handling of smoke damage claims. 

In addition to the Department of Insurance, the FAIR Plan has been criticized by California Governor Gavin Newsom. Governor Newsom called on the insurer to process smoke damage claims fairly, putting pressure on it to do so.

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