California FAIR Plan Insurance: Claims & Bad Faith
At Kerley Schaffer LLP, we are representing wildfire survivors in a growing legal battle against the California FAIR Plan Association (CFPA)—an insurer created to protect homeowners but now facing allegations of systemic legal violations.
The Legal Case: Jungwirth v. California FAIR Plan
In the wake of the 2025 wildfires, Scott and Lissette Jungwirth filed a lawsuit against the FAIR Plan and its affiliated insurers, alleging:
Refusal to release claim-related documents
Delays in adjusting and paying claims
Use of illegal policy language to deny smoke damage
Breach of contract
Bad faith insurance practices
The suit also seeks injunctive relief to force the FAIR Plan to comply with California law and provide documents to all policyholders who request them.
What Are Claim-Related Documents?
These include:
Field adjuster reports
Captioned inspection photos
Repair estimates and valuations
Internal communications used to evaluate your claim
Under Cal. Ins. Code § 2071, these must be provided within 15 days of request. Failure to do so isn’t just bad practice—it’s illegal.
Violating State Law—and a Court Order
The FAIR Plan continues to violate:
California Insurance Code § 2071
A court order in Ortega v. FAIR Plan that ruled they must provide claim documents
Multiple directives from the California Department of Insurance (DOI)
Despite this, the FAIR Plan has persisted in its practices—leaving homeowners unable to challenge their claims or receive full coverage.
What You Can Do If You’ve Been Affected
You may be entitled to:
Access to claim-related documents
Full payment for smoke and fire damage
Compensation for temporary housing
Legal remedies for bad faith and contract breach
If you’ve requested documents and been ignored, or if your claim has been denied for smoke damage, you have legal rights.
Our Legal Action Seeks:
- Declaratory relief to confirm FAIR Plan’s obligation to release documents
- Injunctive relief to stop ongoing violations
- Financial compensation for denied or delayed claims
- Accountability from the insurers profiting while homeowners suffer
Final Thoughts
The California FAIR Plan was created to protect vulnerable homeowners—but its actions in recent years have caused untold harm. Through our legal efforts, we aim not just to win justice for individual families but to change how the FAIR Plan operates for thousands across the state.