A New Court Ruling Could Reopen Thousands of Denied Smoke Damage Claims in California

July 11, 2025
Johanna Namir

When wildfire smoke enters your home, the damage isn’t always something you can see or smell—but that doesn’t mean it isn’t there. Invisible or odorless smoke damage can still pose serious, long-lasting risks to your health and home.

Unfortunately, many California homeowners insured through the FAIR Plan have learned this the hard way. For years, smoke damage claims have been denied, minimized, or dismissed altogether.

Now, that may finally be changing.

In a landmark decision, a Los Angeles County Superior Court judge has ruled that the California FAIR Plan’s smoke-damage policy is illegal under state law. This decision validates what policyholders and advocates have been saying for years: smoke damage is fire damage, and insurance companies have a legal responsibility to cover it.

Here’s what you need to know about the ruling, what it could mean for your claim, and how Rubin Adjusting can help you take the next step.

What the Ruling Actually Says—And Why It Matters

The California FAIR Plan was created as a last-resort insurance option for homeowners who couldn’t get coverage from traditional insurers. But starting in 2017, the FAIR Plan quietly changed how it defined “direct physical loss,” requiring that smoke damage result in “permanent physical changes” or visible damage that could be seen or smelled.

That change made it significantly harder for homeowners to receive fair payouts for smoke-damaged belongings, interiors, and building materials. Instead of offering professional testing or cleaning, FAIR Plan representatives often told homeowners to try cleaning it themselves, and then offered a fraction of what the cleanup or repairs would actually cost.

But in July 2025, Judge Stuart Rice declared this definition of damage unlawful, stating that it violates California’s Standard Form Fire Insurance Policy, which requires coverage for all loss by fire, including smoke, regardless of whether that damage is visible to the naked eye.

This is more than just a technicality. It’s a game-changer.

Who This Ruling Affects: A Second Chance for Homeowners

This decision could affect thousands of California homeowners, especially those who:

  • Have open smoke damage claims under the FAIR Plan
  • Had claims denied or lowballed between 2017 and today
  • Are still living with the aftermath of wildfires like the Jan. 7 Palisades and Eaton fires

If your claim was closed with an underwhelming payout—or denied because the damage wasn’t “visible” enough—this ruling may give you the legal standing to challenge it. Even if your property has been sold or repaired, it’s worth asking whether you’re entitled to more than what you received.

At Rubin Adjusting, we’re already helping homeowners revisit old claims and take advantage of this critical legal momentum.

Rubin Adjusting Has Been Fighting for This All Along

For years, Rubin Adjusting has stood by a simple truth: fire-related damage goes far beyond what the eye can see. Smoke infiltrates walls, furniture, HVAC systems, and insulation. Its toxic residue can linger long after the fire’s out, posing health risks and lowering property value.

We’ve consistently pushed back against policies that treat smoke damage as minor or cosmetic. This ruling reinforces what we’ve been advocating for on behalf of our clients from the beginning.

But even with this new legal support, navigating a smoke damage claim is no easy task. This is especially the case when insurers are still reluctant to pay.

In terms of immediate next steps, we recommend that you:

  1. Review your past or current claim: Was it denied or underpaid? Did the FAIR Plan dismiss your concerns or request that you handle the cleanup yourself?
  2. Get a second opinion: A public adjuster can review the details of your claim and determine whether it’s worth reopening or contesting.
  3. Document everything: If you still have photos, inspection reports, or communication with the insurer, hold onto them. They’ll be key if your claim is reconsidered.
  4. Talk to a professional: At Rubin Adjusting, we offer free consultations to help homeowners evaluate their next steps.

You Don’t Have to Accept an Unfair Outcome

The legal system has sent a clear message: the FAIR Plan’s smoke damage policy was never in line with California law. If you were affected by that policy, you have the right to push back—and we’re here to help.

Our team has over 50 years of experience helping homeowners navigate complex claims. We understand the technicalities, we know the insurance code, and most importantly, we know how to fight for the compensation you deserve.

Let us take a second look—because you shouldn’t have to settle for less. Contact Rubin Adjusting to schedule a free consultation.