California has enacted new requirements for investigating, testing, and restoring homes affected by wildfire smoke.
Gov. Gavin Newsom signed AB 1795, the Smoke Damage Recovery Act, authored by Assemblymember Mike Gipson and sponsored by Insurance Commissioner Ricardo Lara. According to the California Department of Insurance, the law establishes the nation’s first enforceable standards for handling smoke-damaged homes.
The legislation developed from efforts involving the department, wildfire survivors, consumer advocates, public health experts, and lawmakers. The groups sought to address issues surrounding smoke contamination and insurance claims following major California fires.
New Standards for Smoke Damage Claims
AB 1795 establishes a presumption that smoke damage within a wildfire impact zone resulted from the wildfire. The provision is intended to reduce uncertainty over the source of smoke contamination when policyholders file claims.
The law also requires insurers to pay for necessary testing and sampling of affected properties.
In addition, insurers cannot terminate Additional Living Expense benefits until qualifying homes have been restored and are safe to occupy.
The legislation establishes timelines for inspections and claim handling. It also requires repair estimates that restore homes to their pre-loss condition while meeting health and safety standards.
Policyholders retain the right to choose restoration contractors under the law.
AB 1795 also establishes training requirements for insurance adjusters who handle smoke damage claims and includes protections for workers conducting restoration and remediation activities.
Lara said wildfire survivors have sometimes spent months or years disputing whether their homes were safe following fires. He said the new law establishes clearer standards for addressing those situations.
Boyle Heights Fire Prompts Additional Review
The legislation also addresses issues identified following the Lineage Logistics warehouse fire in Boyle Heights.
According to the release, prolonged smoke from the warehouse fire raised questions involving insurance coverage, recovery assistance, public health protections, and emergency response coordination.
AB 1795 directs the California Department of Insurance and the California Governor’s Office of Emergency Services, or CalOES, to evaluate those challenges.
The agencies will develop recommendations aimed at strengthening protections for homeowners, renters, businesses, and communities affected by future contamination events.
Lara said the legislation reflects lessons from both wildfires and industrial fires involving smoke contamination.
Insurer Responsibilities Addressed
Gipson said the law requires insurance companies to follow established standards when determining whether affected homes are safe. He also cited the Altadena and Palisades fires and the Lineage Logistics warehouse fire as examples of events that informed the legislation.
United Policyholders Executive Director Amy Bach said the organization has advocated for insurers to test and fully restore wildfire-damaged homes for more than a decade.
The new law establishes requirements governing smoke damage investigations, testing, restoration, adjuster training, claim timelines, living expense benefits, and contractor selection following qualifying wildfire losses.