Citing more than 200 complaints the Department of Insurance has received from policyholders over how their claims have been handled, the governor urged the California FAIR Plan Association to change its course.
Gov. Gavin Newsom sent a letter Friday to California’s home insurer of last resort, asking it to process smoke-damage claims stemming from the Jan. 7 wildfires “expeditiously and fairly.”
Citing more than 200 complaints the Department of Insurance has received from policyholders over how their claims have been handled, the governor urged the California FAIR Plan Association to change its course.
“I write with an urgent call to action regarding smoke damage claims resulting from the January 2025 Los Angeles wildfires. I am deeply concerned that the FAIR Plan’s handling of these claims is unscrupulous and unfair, and may ultimately be illegal,” stated the letter sent to the plan’s president and board.
The plan, operated and financially backed by the state’s licensed home insurers, including State Farm General, has been deluged with nearly 5,000 claims after its rolls grew following the withdrawl of insurers from the state’s troubled insurance market. The plan has said it expects to pay some $4 billion in claims.
In making his call to action, Newsom cited a cease-and-desist order Insurance Commissioner Ricardo Lara issued to the plan in July that calls on it to stop employing a smoke-damage standard that courts have deemed to be illegal.
“I continue to hear from survivors of one of the worst disasters in California history who are angry and frustrated by the delay and denial of their claims,” the letter stated.
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