Calif. Ruling Holds Wildfire Debris Not a Coverable Loss

Scott Greenspan, Co-Chair of the Sills Cummis Insurance Practice Group, commented on the California Court of Appeal’s recent decision in Gharibian v. Wawanesa General Insurance Company, which held that wildfire debris infiltrating their home did not constitute a coverable loss as it did not cause physical loss or damage.

As seen in the article, “Scott D. Greenspan, co-chair of Sills Cummis & Gross P.C.’s insurance practice group, said he expected a significant battle over whether the decision should be depublished — with policyholder attorneys petitioning the California Supreme Court for that result.

“Ultimately, Greenspan told Law360 in an email, billions of dollars could be at stake.

“‘Given the tremendous public importance to the people of California of settling the law on this issue, which affects so many California residents and businesses in the wake of the devastating LA-area wildfires, this is an issue that will need to be decided at some point by the California Supreme Court,’ he said. ‘However, policyholders will not want this particular case to go up, given the poorly developed evidentiary record on the scientific issues concerning the dangers of wildfire smoke and combustion byproducts.’”