Recovery efforts following major Los Angeles wildfires are shifting toward legislative action as California Insurance Commissioner Ricardo Lara and Assemblymember Mike Gipson introduced the Smoke Damage Recovery Act (AB 1795). The proposed legislation aims to establish a statewide framework for handling wildfire smoke damage insurance claims, which officials describe as the first effort of its kind in the United States.
The bill arrives after record wildfire activity in California. The January 2025 Eaton and Palisades fires destroyed thousands of homes and contaminated many more with smoke, soot, ash, and other toxic combustion byproducts. From January through November of that year, more than 42,000 insurance claims were filed following those fires. Among those were more than 13,000 claims involving homes that remained standing but sustained smoke damage.
Proposed Statewide Framework for Smoke Damage Claims
AB 1795 would create uniform standards for evaluating and restoring homes affected by wildfire smoke. The legislation would require that contaminated homes undergo proper inspection and remediation so they can be restored to safe and habitable conditions. It would also establish accountability measures for insurers if the required standards are not met.
According to Insurance Commissioner Ricardo Lara, the absence of statewide standards has created challenges during the claims process.
“After devastating wildfires, families should not have to fight to prove their homes are unsafe,” Lara said. “Right now, the absence of statewide standards has created confusion, unfair claims handling, and uncertainty for families already coping with unimaginable losses. Consumer protection is my number one priority and we are working to establish clear rules so that homeowners are protected and survivors can safely move back into their restored homes knowing they do not face lifelong health risks.”
Assemblymember Mike Gipson said the measure aims to simplify the recovery process for policyholders after wildfire events.
“After a wildfire, recovery should not depend on a homeowner’s ability to navigate complex insurance disputes while their life is already turned upside down,” Gipson said. “More than a year after the most devastating fires Los Angeles has ever seen, there is no reason to delay. I am dedicated to swift passage of AB 1795, the Smoke Damage Recovery Act, to pave the way for a better process that insurance policyholders can rely upon.”
Task Force Report Highlights Gaps in Current Practices
The legislation follows the release of a report from the California Department of Insurance’s Smoke Claims and Remediation Task Force. The nine-month effort brought together public health experts, fire safety professionals, smoke remediation specialists, industrial hygienists, consumer advocates, and representatives from the insurance industry.
The task force concluded that wildfire survivors currently face gaps in inspection, testing, and restoration processes related to smoke damage. Participants agreed that statewide standards could provide clearer guidance to insurers and improve homeowner safety outcomes.
Amy Bach, executive director of United Policyholders and a member of the task force, said consistent standards are needed to address disputes over smoke-damage claims.
“People who paid for insurance protection, then had their homes contaminated by wildfire smoke and debris, deserve to have their homes restored to pre-loss condition, not be mired in delays, costly disputes, stress and frustration,” Bach said. “This bill will pave the way for critically needed indoor air quality and remediation standards and claim handling protocols.”
The task force produced a 64-page report that included recommendations from wildfire survivor groups and a review of scientific and technical research. The report also identified areas where experts and stakeholders disagreed on inspection and restoration practices, highlighting the Legislature's role in establishing clear standards through the public policymaking process.
Key Provisions Included in the Smoke Damage Recovery Act
The Smoke Damage Recovery Act proposes several requirements related to smoke damage claims and remediation procedures.
The legislation would:
- Create statewide protocols for inspection, sampling, and testing of smoke-related contaminants in residential homes
- Require insurers to follow consistent remediation standards to restore homes to pre-loss condition
- Prevent insurers from terminating Additional Living Expenses benefits until a home is cleared as safe for habitation
- Require insurers to inspect smoke damage claims within 30 days of receiving notice
- Establish timelines for claim payments to ensure funds are delivered promptly
- Create training and certification programs for professionals involved in smoke damage assessment, testing, and restoration
The bill also includes an early action provision. If a state or local health or environmental agency issues standards for interior smoke testing, screening levels, or restoration, policyholders could use those standards immediately to support and accelerate insurance claims.
Role of State Agencies in Developing Standards
If enacted, AB 1795 would direct several state agencies to develop and enforce science-based guidance for smoke-damage claims. Agencies involved would include the California Environmental Protection Agency and the California Department of Insurance.
Officials say the goal is to ensure consistent evaluation and remediation of wildfire smoke damage across the state.
The task force recommendations, combined with the proposed legislation, represent an effort to establish a structured approach to handling smoke-damage claims after wildfires.
AB 1795 is expected to be heard next month once it is referred to an Assembly policy committee.
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