FAIR Plan Insurance - Homeowners Legal Rights
For many California residents, the California FAIR Plan is a last resort—an insurance option when traditional carriers won’t provide coverage due to wildfire risk. But for thousands of policyholders, including the Jungwirth family in Pacific Palisades, the FAIR Plan has become another source of distress.
After escaping the January 2025 Los Angeles wildfires, the Jungwirths returned to find their home contaminated with toxic soot and ash—rendering it uninhabitable. Despite following all claim procedures, the FAIR Plan:
Failed to properly inspect their home
Withheld critical documents
Denied full coverage
Violated California insurance law
Their story is not unique. Kerley Schaffer LLP, along with Edelson PC, is leading litigation to hold the FAIR Plan accountable for bad faith insurance practices and violations of California Insurance Code § 2071.
How the FAIR Plan Violates California Law
Withholding Claim Documents in Violation of § 2071
Under California law, homeowners are entitled to access claim-related documents within 15 days of request. These include:
Adjuster photos and notes
Field inspection reports
Communications used to evaluate the claim
The FAIR Plan’s failure to release these documents prevents policyholders from understanding or disputing their claims—a clear violation of Cal. Ins. Code § 2071.
Ignoring Court Orders and DOI Warnings
In Ortega v. California FAIR Plan, a Fresno court ruled the FAIR Plan’s document practices unlawful. The California Department of Insurance (DOI) has also issued multiple warnings since 2021 about improper denials of wildfire smoke damage claims. Still, the FAIR Plan continues to delay, deny, and avoid.
Bad Faith Denials of Smoke & Fire Damage Claims
Since 2017, the FAIR Plan has used unlawful policy language to narrow coverage—excluding smoke damage unless "permanent physical change" was visible to the naked eye. This goes against California’s standard fire policy, which mandates broad coverage for all fire-related damage, including invisible chemical contamination.
Families like the Jungwirths were denied proper inspections, proper payouts, and a safe return to their homes.
Know Your Rights
If your FAIR Plan claim has been delayed, denied, or underpaid:
- Request your claim documents in writing (cite Cal. Ins. Code § 2071)
- Document every communication
- Contact legal counsel if you don’t receive a response
- You may be entitled to damages and injunctive relief
We Can Help
Kerley Schaffer LLP is representing homeowners across California in litigation against the FAIR Plan. If your home was affected by wildfire and your insurance has failed you, we’re here to help.