Insurers May Have to Cover LA Fire Smoke Damage, California Says

A California regulator is telling insurers they may still be liable for smoke-related claims despite a recent state appeals court ruling that said they were off the hook for homeowner losses from a 2019 wildfire.

The California Court of Appeal, Second District’s ruling in Gharibian v. Wawanesa General Insurance Co. is limited to the facts presented in that case, where “plaintiffs’ smoke damage evidence was not sufficient to establish coverage based on the specific facts of plaintiffs’ claim,” the March 7 bulletin from the California Department of Insurance said.

The ruling shouldn’t be interpreted as supporting the denial of coverage ...