Palisades Fire victims file lawsuit against California's insurer of last resort

LOS ANGELES (KABC) -- California's FAIR Plan is often a last resort for people who can't get insurance for their homes. Since the Los Angeles wildfires in January, many people who lost their homes are now struggling to rebuild.

The FAIR Plan is a state-run insurance program that provides fire insurance to homeowners who cannot get coverage from private companies. Some fire victims say the state-run plan is anything but fair.

"After all this happens, suddenly it's like you have to kind of fight to get what you deserve, and it's just unbelievable," Lissette Jungwirth told Eyewitness News.

Scott and Lissette Jungwirth survived the Palisades Fire. Their home is one of the lucky ones that did not burn down. They want to move back in, but so far it's been a fight with their insurance: the FAIR Plan.

Even though their home survived, they're concerned about possible toxins. They have a 3-year-old daughter and want to make sure they're safe.

When they went to the FAIR Plan with their claim, they say they got nowhere.

"We requested to receive a copy of their report, you know, that they're using to adjust our claim and figure out what damages there are and they basically ignored us," Scott said.

They're filing a lawsuit - one of several against the California FAIR Plan. Homeowners say they're being underpaid or being denied coverage for fire and smoke damage.

"Incredibly, what people are facing is running into a brick wall with FAIR Plan," attorney J. Eli Wade-Scott said.

"I think what FAIR Plan is hoping is that by gumming up the works that people will just kind of give up and not fight," Wade-Scott added. "And that's what we're doing right now, is seeking an injunction so that people like the Jungwirths and everybody who's experiencing this gets the documents that they're entitled to."

Dealing with several lawsuits, the FAIR Plan has said it can't comment on ongoing litigation but adds:

"The FAIR Plan pays all covered claims, including smoke claims, consistent with California law and its policy forms, which are approved by the California Department of Insurance."

For now, the Jungwirths and their daughter can only wait.