California Fire Insurance Ruling Spurs Policyholder Pushback (1)

A California appeals court ruling that could doom insurance coverage for smoke damage claims is in line for strong pushback from the policyholder bar and will likely end up in a high court showdown.

In an opinion late last week, the California Court of Appeal, Second District, held that “wildfire debris” stemming from a 2019 fire near Los Angeles wasn’t covered because it didn’t constitute physical loss or damage for insurance purposes.

The ruling, a major win for insurers, comes at a time when fire-related damage is top of mind for businesses and homeowners in the LA area, which ...