A bill to create a statewide framework for handling insurance claims for wildfire smoke damage is now making its way through the California legislature.
The Smoke Damage Recovery Act, whose primary supporter Insurance Commissioner Ricardo Lara said came out of the recovery process after the January 2025 Los Angeles wildfires and smoke damage claims, was written by Assemblyman Mike Gipson.
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The bill was first made public in February.
Assembly Bill 1795 requires that homes contaminated after wildfires be properly assessed and restored to a safe and habitable condition. It would hold insurance companies accountable when those standards are not met.
The record LA wildfires destroyed thousands of homes and left many properties in smoke. According to the California Department of Insurance, more than 42,000 insurance claims were filed after the fire, including more than 13,000 claims for smoke-damaged homes.
After the LA fires, Lara created the Smoke Claims and Remediation Task Force, which found that wildfire victims were passing through loopholes in smoke damage inspection, testing and remediation rules.
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The American Property Casualty Insurance Association released a statement from Karen Collins, vice president, personal lines and environmental policy for the association. Collins was a member of the Smoke Task Force.
“Wildfire survivors deserve clarity, consistency and confidence as they recover, and insurers support science-based approaches to assess smoke damage and guide remediation. This report offers credible, actionable insights for states facing similar challenges,” the statement said. “APCIA and its members recognize the significant barriers facing wildfire survivors and support efforts to reduce vulnerability, improve resilience, and increase scientific understanding of smoke-related pollutants.
AB 1795 would mandate that if a state or local health or environmental agency issues specific standards for indoor smoke testing, screening levels, or recovery, wildfire victims will be able to use those local standards to promptly support and expedite their insurance claims.
AB 1795 would also:
- Create statewide protocols for inspection, sampling, and testing of smoke-related pollutants in residential homes.
- Insurers are required to follow repair standards to restore homes to pre-loss conditions.
- Prevent insurers from terminating benefits for excess housing expenses unless the home is deemed safe for habitation.
- Require insurers to inspect smoke damage claims within 30 days of notice.
- Establish timelines for payment of claims to ensure that survivors receive funds promptly.
- Create training and certification programs for professionals involved in smoke damage assessment, testing and remediation.
The bill would also direct state agencies, including the California Environmental Protection Agency and CDI, to develop and implement standards and guidance to ensure consistent assessment and remediation of wildfire smoke damage.
Lara filed a lawsuit last year against the California FAIR Plan Association for allegedly denying and limiting smoke damage claims from wildfire survivors.
Top Image: 2025 Pacific Palisades Fire. Photo by CalFire.
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California
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