Judge Rules California FAIR Plan Shortchanged Fire Victims on Smoke Damage

Los Angeles, CA — A Los Angeles County Superior Court judge has ruled that the California FAIR Plan’s smoke damage policy is illegal. The ruling found the FAIR Plan in violation of state insurance law by denying coverage for lab confirmed smoke contamination even when the damage is not visible or detectable by smell. 
Source: San Francisco Chronicle

SSM Has Witnessed This Firsthand

At Safety Services Management (SSM), we’ve seen the consequences up close.

“I’ve had numerous people call me crying, asking for help with removing smoke damage from their home and getting little to no support from the CA FAIR Plan,” said Jon Schibsted, CEO of SSM. “One of our elderly clients was offered less than $3,000 for her cleanup—even though her entire neighborhood burned to the ground and testing revealed high levels of contamination inside her home. It’s just wrong and far from a Fair Plan!”

Residents are now under increasing pressure. Many are running out of temporary housing benefits and feel forced to accept lowball insurance offers just to return to their homes—even if those homes haven’t been properly cleaned. This is pushing people back into contaminated environments without cleaning.

Alarming Levels of Lead Found in Fire-Damaged Homes

During our preliminary testing, over 90% of homes tested by SSM have shown lead dust levels that exceed federal safety thresholds.

Updated 2024 EPA Dust-Lead Action Levels (DLAL):

In January 2025, the EPA implemented new standards under its Dust-Lead Reconsideration Rule. These levels, called DLAL (Dust-Lead Action Levels), set the maximum allowable lead dust levels after remediation:

• Floors: 5 µg/ft²

• Window Sills: 40 µg/ft²

• Window Troughs: 100 µg/ft²
  Source: EPA Final Rule (2024)

These new DLAL values are more protective than previous standards and must be met before a property can be considered clean and safe for re-occupancy.

At SSM, as of June 27, 2025, we are proud to report that 100% of our clients who received post-clearance testing after professional remediation passed well below these new DLAL thresholds with combustible byproducts at non-detectable levels.

Unfortunately, this is often not the case when residents attempt DIY cleanup or rely on inexperienced companies providing substandard cleanings. Without proper remediation, lead, soot, and other toxic fire byproducts can remain trapped in porous materials such as furniture, drywall and wood cabinetry and persist on non-porous surfaces like flooring, posing ongoing exposure risks. Wildfire residual combustible byproducts and heavy metals can cause serious health risks—even without visible signs of damage.

Combustible byproducts entering a home are clearly visible in this scenario; however, many smoke hazards are not as easily detected.

Short-Term Effects Include:

• Coughing, wheezing, asthma flare-ups

• Skin and eye irritation

• Headaches and dizziness

• Acute respiratory distress
  Source: EPA – Health Effects of Wildfire Smoke

Long-Term Effects Can Include:

• Chronic lung disease (COPD, asthma)

• Neurological issues from lead or heavy metal exposure

• Increased cancer risk from PAHs and VOCs

• Reproductive issues and developmental delays
  Source: WHO – Lead Poisoning and Health
  Source: Verywell Health – Long-Term Smoke Exposure

Why DIY Cleanup CAN BE Dangerous

When homeowners are left without proper insurance coverage, many attempt to clean their homes themselves often without understanding the risks. Smoke and fire related toxins, including lead dust and combustalbe byproducts, require specialized cleanup procedures. Without professional remediation, these contaminants can become airborne during cleaning or be pushed deeper into porous surfaces like drywall, wood, and cabinetry.

Exposure isn’t limited to inhalation. If proper personal protective equipment (PPE) isn’t used, toxins can also be absorbed through the skin, compounding both immediate and long-term health risks.

Improper cleaning can actually make the situation worse. For example:

• Using a household vacuum without a HEPA filter can re-release toxic particles into the air, spreading contamination throughout the home.

• Wiping surfaces with a wet cloth before HEPA vacuuming can embed residues like lead and soot deeper into porous materials, making them harder to remove later.

These common mistakes can result in a home that looks clean but remains dangerously contaminated, putting residents at risk and undermining future clearance testing.
Source: OSHA – Wildfire Cleanup Hazards

CA Insurance Commissioner: Proper Testing Is Required

On March 7, 2025, California Insurance Commissioner Ricardo Lara issued Bulletin 2025‑7, which clarifies that insurers must fully investigate smoke damage claims and pay for necessary professional testing when contamination is suspected. The bulletin states it is not reasonable for insurers to deny claims without proper inquiry or to require homeowners to bear testing costs themselves.
Bulletin 2025‑7

Commissioner Lara also launched a formal investigation into the California FAIR Plan and other providers that have denied proper cleanup support after wildfires.
Coverage via AP News

A Step Toward Accountability

The court’s ruling dismantles the “visible damage only” limitation and affirms that lab-based testing is valid evidence of smoke damage.

“I’m glad to see a judge finally holding the FAIR Plan accountable,” said Schibsted. “Homeowners deserve clean, safe homes to return to.”

Meanwhile, many residents are running out of temporary housing insurance coverage and the pressure is building. With nowhere else to go, they’re feeling forced to accept lowball settlement offers from their insurance providers just to move back into homes that may not be fully cleaned or safe. It's unacceptable that families are being placed in this position, forced to choose between health and shelter because insurers aren't offering proper support for full remediation.

What Affected Homeowners Should Do

• Reopen denied claims based on new testing or health concerns

• Request insurer to pay for testing under Bulletin 2025‑7

• Use certified professionals to document, clean, and verify remediation

• Maintain detailed records of all communication, test results, and medical visits

Safety Services Management: A Trusted Industry Leader

Safety Services Management is the leading company nationwide for providing illicit drug testing and cleaning of vehicles and properties. Our team specializes in identifying and remediating properties and vehicles contaminated by illicit drugs which include fentanyl, methamphetamine and other dangerous substances.

We also support wildfire cleanup efforts under the direction of a Certified Industrial Hygienist to ensure our testing and cleanup procedures are best for the task at hand. Our services include on-site testing, expert documentation and coordinated cleanup plans based on proven protocols.

SSM takes pride in offering evidence-based assessments and helping clients meet safety and compliance standards. Whether dealing with illicit drug contamination or post-fire damage, we work closely with property owners, insurance adjusters and industrial hygienists to restore safety and peace of mind.