California wildfire survivors one step closer to landmark smoke damage protections

California wildfire survivors with smoke-damaged homes are one step closer to gaining landmark new protections after the California State Legislature passed Assembly Bill 1795, the Smoke Damage Recovery Act, authored by Assemblymember Mike Gipson and sponsored by Insurance Commissioner Ricardo Lara.

AB 1795 responds to the critical needs of people with standing homes by establishing clear standards for testing and restoring homes, and new requirements for insurance companies to fairly and quickly handle smoke damage claims. This legislation now heads to the governor for his signature.

"Wildfire survivors should never have to fight their insurance company just to know whether their home is safe for their family," said Lara. "With the Smoke Damage Recovery Act, we are putting health and safety first, creating clear rules for insurance companies, and giving survivors peace of mind and the protections they need to recover. I want to thank Assemblymember Gipson for authoring this bill and United Policyholders and Eaton Fire Residents United for championing stronger protections for wildfire survivors and standing with us to get this landmark legislation to the governor's desk."

"After a wildfire, homeowners should not have to fight their insurance company while struggling to rebuild their homes, their lives, and their future," said Assemblymember Mike A. Gipson. "I'm proud to have worked with Insurance Commissioner Ricardo Lara to make California the first state to address smoke contamination forcefully and promptly, with real accountability. AB 1795 gives wildfire survivors the strong, science-based protections they need to return home — and I look forward to the governor signing the bill so that no community is ever left in limbo again."

For more than 30 years, California has lacked clear, enforceable standards for testing and restoring smoke-damaged homes following a wildfire. AB 1795 requires insurance companies to follow public health standards for smoke damage testing, remediation, and restoration that will be developed by the California Department of Toxic Substances Control.

Among its key consumer protections, the Smoke Damage Recovery Act

Gives clarity about the causes of smoke damage by creating a rebuttable presumption that when wildfire smoke is present in a residential property within the wildfire impact zone, the damage resulted from that wildfire — removing uncertainty for survivors and triggering the protections established under the new framework.

Keeps survivors safely housed during recovery by prohibiting insurers from terminating additional living expense coverage for qualifying smoke damage claims until the home has been restored to its pre-loss condition and cleared for human occupancy.

Makes insurers responsible for necessary testing and sampling costs to determine what is needed to safely restore a smoke-damaged home.

Establishes timelines for insurers, including requiring inspection of smoke-damaged property within 30 days after receiving notice of a claim or gaining access to the property.

Requires adequate repair estimates that will restore damaged property to at least its pre-loss condition and meet applicable health and safety standards.

Protects a survivor's right to choose the vendor or contractor who performs restoration work.

Creates training and certification requirements for adjusters handling wildfire smoke damage claims.

Protects health and safety of employees performing work on residential properties with smoke damage through the state Occupational Safety and Health Standards Board.

Analyzes the response to smoke contamination from the Lineage Logistics fire by directing the Department of Insurance and the Governor's Office of Emergency Services to examine the response to and recovery from the Lineage Logistics warehouse fire in Boyle Heights, including coordination among responding agencies and potential gaps in existing laws and regulations, with recommendations aimed at better protecting residents and businesses from future contamination events.

The Smoke Damage Recovery Act and companion legislation Assembly Bill 1642, authored by Assemblymember John Harabedian, establish an interlocking smoke damage recovery framework that protects public safety while holding insurance companies accountable to clear public health standards for restoring smoke damaged homes. By establishing the nation's first comprehensive smoke damage standards, AB 1795 and AB 1642 position California to lead the development of a national framework.

The package also enables the State Air Resources Board to develop interim guidance on levels for indoor air contaminants following residential smoke damage from a wildfire while permanent regulations and guidance are developed. The legislation was shaped by direct input from wildfire survivors and public health experts, with the Department of Insurance working with survivor groups to ensure their experiences informed these much-needed protections.

"United Policyholders has been fighting for over a decade to get insurers to routinely test wildfire damaged homes and stop misleading homeowners that their homes are safe to move back into when they aren't," said Amy Bach, Executive Director of United Policyholders. "Passage of AB 1795 and AB 1642 is an important win in that fight. These bills will create urgently needed contaminant standards, better regulate remediation and restoration professionals and affirm insurers' obligations. We commend the authors and the Commissioner's team for the countless hours spent with survivors, insurers, scientists and professionals to craft these measures."

"California has written the rules the rest of the country can use as their north star. Wildfires are increasing in severity and geographic diversity. When the flames are out, people need to know when it is safe to return to a smoke damaged home. EFRU has spent a year and a half learning what happens when there are no standards or answers. Now is the time to lean into scientific advances in identification, testing, thresholds for health and safety and the remediation of toxic contaminants in smoke damaged homes. AB 1642 creates the first standards in the nation for testing and remediating homes of toxic contaminants after a wildfire and AB 1795 requires insurance companies to follow them within the impact zone," said Eaton Fire Residents United.

About the Department of Insurance

Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state's consumers by fairly regulating the insurance industry. Under the Commissioner's direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud.

Consumers are urged to call (800) 927-4357 with any questions or contact us at insurance.ca.govvia webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at (800) 927-4357. Teletypewriter (TTY), please dial (800) 482-4833.