The California Assembly Insurance Committee convened on May 28, 2025, to address pressing issues surrounding smoke claims related to recent wildfires. A key focus of the meeting was the insurance policy framework that governs coverage for smoke and fire damage, which is contingent upon direct physical loss.

Insurance representatives clarified that while smoke and ash can cause damage to homes, coverage is only applicable if there is visible damage. Claims adjusters are dispatched to assess the extent of damage, and if no damage is found, policyholders are advised to clean their homes and report any findings afterward. This process is in line with regulations set by the California Department of Insurance and is consistent with industry standards.

The meeting also highlighted the significant impact of recent wildfires, with over 5,500 claims filed, nearly half of which resulted in total losses. The insurance company reported having paid out approximately $2.9 billion in claims so far, with projections nearing $4 billion as the situation develops. More than 3,000 claims have been closed, indicating a focused effort to expedite support for affected residents.

To manage the influx of claims, the California Fair Plan has expanded its workforce, bringing on over 300 additional staff members shortly after the fires. This included field and desk adjusters to streamline the claims process. Customer service hours were also extended to accommodate the needs of policyholders during this challenging time.

The discussions underscored the importance of clear communication and efficient claims processing in the wake of natural disasters, as the insurance industry navigates the complexities of coverage and support for affected communities. As the situation evolves, the committee's ongoing oversight will be crucial in ensuring that residents receive the assistance they need to recover from these devastating events.