Jessica E. Gopiao and Amber S. Finch | ReedSmith
Addressing a Growing Challenge
In response to the increasing severity and complexity of wildfire smoke damage across California, the Department of Insurance announced the creation of a new Smoke Claims & Remediation Task Force. This initiative, spearheaded by Insurance Commissioner Ricardo Lara, aims to establish clear, science-based standards for investigating, paying, and remediating smoke damage claims—a move that comes after decades of inconsistent practices in the insurance industry, including recent court opinions.
Bulletin 2025-7
Earlier this year, the Department of Insurance issued a Bulletin 2025-7, which requires insurers to fully investigate and pay legitimate smoke damage claims, extending these requirements to the California FAIR Plan as well. (For further discussion of this Bulletin, see California Insurance Commissioner Bulletin Adds Guidance on Smoke Damage Claims).
To summarize, the Bulletin discusses Gharibian v. Wawanesa General Insurance Company, 108 Cal. App. 5th 730, 732 (2025), Bottega LLC v. Nat’l Sur. Corp., No. 21-cv-03614-JSC, 2025 U.S. Dist. LEXIS 5666 (N.D. Cal. Jan. 10, 2025), and Another Planet Entertainment LLC v. Vigilant Ins. Co., 15 Cal. 5th 1106, 1117 (2024) and clarifies that recent court opinions do not eliminate coverage for smoke damage. (For further discussion of these cases, see Reconciling 2 Smoke Coverage Cases From California; Where there’s smoke there can be coverage. CA Federal Judge Weighs In).
The Bulletin emphasizes that each claim must be evaluated based on its unique facts and policy language. It further urges that insurers are required to conduct thorough, fair, and prompt investigations, and must not deny claims without appropriate inquiry. The Department expects insurers to adopt reasonable standards for processing smoke damage claims and to ensure that policyholders are not burdened with unreasonable investigative costs.
Why the Task Force Matters
Wildfires in California have grown in both frequency and impact, with smoke damage now affecting not only burn zones but also densely populated urban areas. Historically, the lack of uniform guidelines has led to confusion, delays, and, in some cases, unsafe living conditions for residents awaiting claim resolution. To address these issues, Insurance Commissioner Ricardo Lara has announced the formation of the Smoke Claims & Remediation Task Force. The Task Force is a direct response to consumer frustration and the urgent need for uniform standards that protect health, safety, and property.
Key Objectives and Stakeholder Involvement
The Task Force will bring together a diverse group of experts, including public health officials, environmental health professionals, fire safety specialists, smoke remediation experts, and consumer advocates. Its primary goals include:
- Evaluating and recommending best practices for inspecting, testing, and remediating smoke-damaged properties.
- Establishing health and safety benchmarks to determine when structures are safe for occupancy.
- Identifying the roles of state and local agencies in enforcing these standards and preventing fraudulent or exaggerated claims.
Commissioner Lara is currently appointing Task Force members, with the first meeting to be scheduled soon. The Department encourages consumers with questions about insurance coverage or claims to reach out via its hotline or online resources.
Looking Ahead
For businesses and homeowners, the establishment of the Smoke Claims & Remediation Task Force marks a significant step toward greater clarity, consistency, and fairness in the handling of smoke-related insurance claims. As California continues to confront the realities of climate-driven wildfires, these efforts are essential to ensuring that consumers are treated equitably and that their health and safety remain a top priority.
We will continue to monitor developments.
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