Major California Wildfire Insurance Ruling: Homeowners Beware

On Friday, February 14th, the California Court of Appeal issued a decision in Gharibian v. Wawanesa, making it significantly harder for homeowners to claim insurance for wildfire smoke and ash damage. After the 2019 Saddle Ridge wildfire, plaintiffs Hovik Gharibian and Caroline Minasian filed a claim for extensive smoke and ash contamination in their home, despite no visible structural damage. Their insurer, Wawanesa, denied the claim, arguing that no “demonstrable, physical alteration” had occurred. The court agreed, holding that unless a homeowner can prove that wildfire debris physically changed the property, insurers are not required to provide coverage.

fire-aftermath

5 Key Takeaways

  • 1
    A Dangerous Precedent – This decision severely limits coverage for wildfire-related damage, redefining what qualifies as an insurable loss. Now, insurers can argue that smoke, ash, and toxic wildfire debris do not constitute property damage unless they visibly alter the structure.
  • 2
    Flawed Legal Reasoning – The court misapplied Another Planet Entertainment v. Vigilant Ins. Co., ignoring whether toxic wildfire contaminants rendered homes uninhabitable. Instead, it focused only on whether the property underwent a structural change, an unrealistic burden for homeowners.
  • 3
    Insurers Will Exploit This Ruling – Insurance companies will use this decision as a shield to deny even more wildfire-related claims. Previously, insurers at least attempted to minimize damages; now, they may deny claims outright, forcing policyholders into expensive legal battles.
  • 4
    Policyholders Must Be Proactive – Homeowners filing claims must work with experienced coverage attorneys and environmental experts to document not just the presence of wildfire contamination but also its lasting impact on livability, air quality, and structural integrity. The burden of proof is now significantly higher.
  • 5
    Legislative & Judicial Fix Needed – If left unchecked, this ruling will embolden insurers to deny legitimate claims en masse. Lawmakers or higher courts must step in to clarify that toxic wildfire debris constitutes property damage and should be covered. Without intervention, homeowners will bear the full financial burden of contamination.

Bottom line: This ruling gives insurers an even bigger excuse to deny legitimate claims, creating a dangerous precedent for all wildfire-affected homeowners. If you live in a fire-prone area, be prepared: insurers will push this decision to the limit.

Read the official opinion for more insight, here.