California couple sues insurance companies, FAIR Plan over wildfire coverage
About six weeks after the Park Fire erupted in the Chico area last summer, Anne Yates and Patrick Proctor returned to their home together for the first time.
The blaze had scorched their nearly 13-acre property northeast of downtown Chico. Somehow, it was still standing and the inside of it was not visibly damaged.
But Yates immediately noticed a harsh scent when she stepped back into it, like of burning plastic or chemicals.
She and Proctor kept several doors open to try and air out the home as they searched for important documents. They developed headaches over the roughly hour and a half they were there before abruptly leaving.
“That night, we didn’t eat,” Proctor said, “we didn’t feel good.”
The house was covered by the California FAIR Plan, a private association that provides fire insurance to homeowners in the state who can’t otherwise find coverage. It is made up of all the companies that are licensed to write property policies in California and is not funded by taxpayer dollars.
The couple expected the plan to pay for smoke damage inside of the home. But it denied their claim and Yates and Proctor have not moved back into the home they have lived in since 2008.
Now, they are suing.
According to the lawsuit, which they filed last month, a claim evaluator for the FAIR Plan “did not observe any permanent damage resulting from smoke, ash or soot.” But the couple, and their lawyer, Dylan Schaffer, say it is toxic inside.
The suit accuses the plan and several major insurance companies of a “criminal scheme to issue sub-standard property insurance policies, and to improperly deny or partially deny wildfire claims.”
It is a misdemeanor to sell fire insurance coverage that does not meet state standards, according to California law.
A FAIR Plan spokesperson did not immediately respond to a request for comment.
Schaffer, an Oakland-based attorney, last year filed a class action lawsuit in Alameda County against the FAIR Plan over its handling of smoke damage claims. The case is still pending, according to court records.
“The core problem is that FAIR Plan does not believe these houses are damaged,” he said.
The Butte County lawsuit alleges the plan has underpaid, denied, or partly denied thousands of wildfire claims. The plan has seen rapid growth in recent years as many homeowners have been dropped by major insurance companies and unable to find coverage elsewhere. It issues policies on behalf of its members. Schaffer said it is time for those companies “to take responsibility. They’re hiding behind FAIR Plan.”
The lawsuit names State Farm’s California arm, Allstate and CSAA, which is affiliated with AAA, among others. The couple is seeking unspecified financial compensation.
A CSAA spokesperson declined to comment. Representatives for State Farm and Allstate did not immediately respond to requests for comment.
Yates, 70, and Proctor, 74, say they haven’t moved back into the home because they are too concerned about what the fire left inside.
Schaffer, their lawyer, said he brought in a specialist who found it had cyanide and other toxins in it.
In the meantime, the couple is living in an apartment in Chico. Both work as therapists. The lawsuit also accuses the plan of cutting off their rental assistance “without explanation or excuse.”
To feel comfortable staying in their home again, they said they would want to first tear it down and then rebuild. Proctor said they find it emotionally difficult to even go up and see it.
They looked for years to find the property where they built the home. They wanted a place with a sunset view.
“It was really special for us,” Proctor said. “We’re going to have to find the energy to keep managing this.”
This story was originally published April 1, 2025 at 12:00 PM with the headline "California couple sues insurance companies, FAIR Plan over wildfire coverage."
