California FAIR Plan's smoke-damage policy is illegal, judge rules

Homeowners who suffered smoke damage during the Southern California wildfires in January got a big win in court Wednesday.

A Los Angeles County Superior Court judge ruled the California FAIR Plan violates the law in the way it covers smoke damage. The judge said it's illegal because it provides less coverage than is required by the state's standard form of fire insurance.

The FAIR Plan is a state-run insurance program that provides fire insurance to homeowners who cannot get coverage from private companies.

A number of homeowners affected by the wildfires sued the FAIR Plan, claiming it's been difficult to get paid for damage.

"Their position since 2012 is that these homes impacted by wildfire smoke damage are not damaged, they're dirty. And they told people to clean them up themselves," the homeowners' attorney Dylan Schaffer said. "That advice is not just illegal under California law, it's also dangerous because these houses are toxic."

Schaffer said these repairs could often cost tens-of-thousands of dollars because they may involve replacing insulation, flooring, drywall and more.

The FAIR plan has not commented on the judge's ruling.