California Fire Insurance Ruling Spurs Policyholder Pushback

Scott Greenspan, Co-Chair of the Sills Cummis Insurance Practice Group, is quoted in an article on a recent ruling by a California appeals court that “wildfire debris” from a 2019 fire near Los Angeles wasn’t covered by insurance because it did not constitute physical loss or damage for insurance purposes, potentially limiting coverage for smoke damage claims.

As seen in the article, “The uncertainty over the California state appellate ruling means there will likely be ‘a tidal wave of letters’ from policyholder-side firms and groups asking the state’s Supreme Court to depublish the decision—and a ‘proportionate response of insurer oppositions,’ Sills Cummis & Gross insurance practice group co-chair Scott Greenspan said….

“The policyholder bar will likely push for depublication rather than an appeal because of the unfavorable evidentiary record in the case, Greenspan said, but insurers would probably be happy to see an appeal and a high court ruling affirming their win.

“‘There’s going to be quite a battle between the insurance industry and policyholders over this decision,’ Greenspan said.”