Court Invalidates California FAIR Plan's Smoke Damage Policy

Court invalidates California FAIR Plan's smoke damage policy

California’s home insurer of last resort has violated state law with how it limited coverage for smoke damage under its fire insurance policies.  Last month, Los Angeles Superior Court Judge Stuart Rice ruled that the California FAIR Plan Association violated state insurance code by providing less coverage than the requirements under the Standard Form Fire Insurance Policy.  The backstory: Lake Tahoe cabin owner Jay Aliff sustained smoke damage …

California FAIR Plan Ruled <em>Un</em>FAIR

After four years of litigation, key limitations in the California FAIR Plan fire policy were found to be unlawful in Jay Aliff v. California FAIR Plan Association. Originally designed to be California’s insurer of last resort, the California FAIR Plan has increasingly become the default plan for those in California who do not qualify for policies with private insurers. The decision is significant, not only because of the vast number of individua…