Insurance, Homeowner’s Insurance, Property Damage, Ash, Smoke & Debris from Wildfire, 1, 2
A wildfire that stopped half a mile from plaintiff’s property dropped ash and debris on the property and temporarily caused it to have a fire smell. Relying on Another Planet Entertainment, LLC v. Vigilant Ins. Co. (2024) 15 Cal.5th 1106, this decision holds that the smell, ash and debris do not constitute “direct physical loss to property”–a phrase that requires a distinct, demonstrable, physical alteration to property. The wildfire debris did not “alter the property itself in a lasting and persistent manner.” Rather, all evidence indicates that the debris was “easily cleaned or removed from the property.” Another Planet governs even though it arose in the context of business interruption coverage of a COVID-19 claim. The fact that the insurer paid plaintiff $20,000 anyway does not show there was coverage since insurers settle for many reasons not related to coverage.