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Jan. 22, 2026

How California courts are clearing the air on fire claims

In 2025, California courts and the Department of Insurance clarified that "direct physical loss or damage" from fires and smoke--including invisible or microscopic damage--can qualify for coverage under insurance policies, building on the precedent set in Another Planet Entertainment v. Vigilant Insurance.

Kirk A. Pasich

Partner and Co-Leader of the Insurance Recovery Group
McGuireWoods LLP

Phone: (310) 956-3462

Email: kpasich@mcguirewoods.com

Loyola Law School

See more...

How California courts are clearing the air on fire claims
Shutterstock

California appellate courts rendered fewer significant insurance-related decisions in 2025 than they did in years past. Indeed, the California Supreme Court rendered none in 2025, compared with three important decisions in 2024.

However, one of those 2024 decisions resonated significantl...

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