Court Ruling Strengthens Homeowners’ Rights in California Smoke Damage Claims

New Legal Development Could Reopen Denied or Underpaid Insurance Claims

We want to share a major legal development that directly affects many of our clients—particularly those who have suffered smoke and fire damage to their homes.

On June 24, 2025, the Superior Court of California issued a landmark ruling against the California FAIR Plan Association (CFP). This decision has serious implications for how insurance companies evaluate smoke damage—and may entitle you to more compensation than you were originally offered.

What the Court Ruled

The Court struck down several provisions in CFP’s standard policy, stating they violate California law:

• Unlawful Limitations on Smoke Damage: CFP required smoke damage to be permanent, visible to the naked eye, or detectable by smell. The Court found this standard too narrow and unlawful under California law.

• Restrictions on Testing: CFP’s refusal to accept laboratory testing or your own observations as valid proof of damage was ruled invalid.

• Flawed Dispute Process: Because the claim evaluation process relied on these unlawful standards, the entire dispute resolution procedure was deemed illegal.

What This Means for You

If your claim was denied, underpaid, or limited based on these now-invalid rules, you may be entitled to additional compensation.

This decision reinforces what we’ve long believed: Your right to coverage under California law is broader than what CFP has allowed.

What Happens Next?

Our legal team is actively reviewing the ruling’s impact across all relevant cases. In the coming weeks, we’ll be contacting you to prepare an Impact Statement—a short but vital summary of how the fire and smoke affected your:

• Home

• Health

• Finances

• Daily life

This statement is critical to building your case and may be required by the court moving forward.

We’re Here for You

If you have questions, need to share documents, or want to update us on your situation, please don’t hesitate to reach out. Your voice matters, and we are committed to fighting for the justice and compensation you deserve.

For current clients, we’ll be in touch soon with next steps. Thank you again for trusting us.

Call our Legal Team at 800-830-2966 or email us at cafire@galindolaw.com.