The Department of Insurance has ordered California's FAIR Plan, the state's home insurer of last resort, to respond to allegations of illegal handling of smoke damage claims. Consumer advocates believe the legal action is overdue and doubt its effectiveness in reforming the plan. The July 31 filing includes a cease-and-desist order and possible fines for violations. Homeowners have expressed frustration over inadequate responses to smoke damage, leading to delays in assistance. Concerns have been raised regarding the time taken for departmental action despite prior investigations revealing numerous violations.
"I've spoken with wildfire survivors who would rather lose their homes to flames than endure the stress and confusion of navigating smoke damage claims," said Insurance Commissioner Ricardo Lara in a statement. "This is unacceptable."
The FAIR Plan's handling of smoke damage claims has angered homeowners who say that instead of being promptly offered industrial hygienic testing for toxic substances and professional cleaning services - even after homes were infiltrated by soot, ash and other fire debris - they were told to try to clean up their properties and given lowball offers to close their claims.
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