A bill to establish a statewide framework for handling insurance claims for wildfire smoke damage has now passed the California Legislature.
The Smoke Damage Recovery Act, authored by Assemblyman Mike Gipson, grew out of the recovery process following the January 2025 wildfires and smoke damage claims in Los Angeles, said Insurance Commissioner Ricardo Lara, a key sponsor.
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The bill was first made public in February.
Act of Parliament 1795 requires that homes contaminated after wildfires be properly assessed and restored to a safe and habitable condition. When these standards are not met, the insurance company becomes liable.
Record wildfires in Los Angeles have destroyed thousands of homes and exposed many properties to smoke pollution. According to the California Department of Insurance, more than 42,000 insurance claims were filed following the fires, with more than 13,000 of those claims involving smoke-damaged single-family homes.
After the Los Angeles fires, Laura formed the Smoke Claims and Remediation Task Force, which found deficiencies in smoke damage inspection, testing and recovery rules for wildfire victims.
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Karen Collins, vice president of personal lines and environmental policy for the American Property Casualty Insurance Association, released a statement. Collins is a member of the Smoke Task Force.
“Wildfire survivors deserve clarity, consistency and confidence in their recovery process, and insurers support the use of science-based approaches to assess smoke damage and guide remediation. This report provides trusted, practical insights for states dealing with similar challenges,” the statement reads. “APCIA and its members recognize the significant barriers that wildfire survivors face and support efforts to reduce risk, increase resilience and expand scientific understanding of smoke-related contaminants. Insurers support the use of tests based on credible, relevant science to inform remediation decisions under insurance coverage.”
AB 1795 would provide that if a state or local health or environmental agency issues specific standards for indoor smoke testing, screening levels, or restoration, wildfire victims will be able to immediately use those local standards to support and expedite their insurance claims.
AB 1795 would also:
- Develops a statewide protocol for inspection, sampling, and testing of smoke-related contaminants in residences.
- Insurance companies are required to follow consistent remediation standards to restore a home to its pre-loss condition.
- Prevents insurance companies from terminating additional living expense benefits until the home is cleared as safe to live in.
- Insurance companies are required to inspect smoke damage claims within 30 days of notification.
- Develop a claim payment schedule to ensure survivors receive funds in a timely manner.
- Develop a training and certification program for professionals involved in smoke damage assessment, testing, and repair.
The bill would also direct state agencies, including the California Environmental Protection Agency and CDI, to develop and enforce standards and guidelines to ensure consistent assessment and remediation of wildfire smoke damage.
Last year, Laura took legal action against the California Fair Plan Association, which reportedly denied and limited smoke damage claims from wildfire survivors.
Above: The 2025 Pacific Palisades Fire. Photo by Cal Fire.
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