For thousands of California wildfire survivors, a home that survived the flames has not necessarily been safe to live in. Smoke, ash and toxic contaminants can remain long after a wildfire is extinguished, leaving homeowners caught between questions about health, habitability and whether their insurance will pay for the necessary cleanup.
That could soon change. California lawmakers have passed Assembly Bill 1795, the Smoke Damage Recovery Act, creating what state officials describe as the nation’s first comprehensive framework for testing and restoring homes contaminated by wildfire smoke. The legislation now moves to Gov. Gavin Newsom for consideration.
New Rules Target a Major Insurance Gap
For decades, California homeowners dealing with smoke damage have faced a difficult insurance landscape. While policies can cover certain types of smoke-related damage, there has not been a consistent statewide standard governing how contaminated homes should be tested, cleaned and declared safe.
That has created disputes between homeowners, restoration professionals and insurers over whether a property requires extensive remediation or can simply be cleaned and occupied.
AB 1795 seeks to establish clearer rules.
Under the legislation, when wildfire smoke is present in a residential property within a designated wildfire impact zone, there would be a rebuttable presumption that the damage resulted from the wildfire. That could reduce the burden on homeowners to prove the source of contamination.
The measure also requires insurers to pay necessary testing and sampling costs used to determine what restoration work is required.
Insurers Would Face New Claims Deadlines
One of the most significant changes involves how quickly insurers must respond.
The legislation requires insurers to inspect smoke-damaged properties within 30 days after receiving notice of a claim or obtaining access to the property. Repair estimates would also have to be sufficient to restore homes to at least their pre-loss condition while meeting applicable health and safety standards.
The bill would also protect additional living expense coverage for qualifying smoke-damage claims until the home has been restored and cleared for human occupancy.
For displaced families, that provision could be particularly important.
A homeowner whose house remains standing may still be unable to return because of contaminated indoor air, damaged materials or uncertainty over whether professional remediation is necessary. Under the proposed framework, insurance coverage for temporary living expenses could remain available while the property undergoes the required restoration process.
Survivors Gain More Control Over Restoration
The legislation would also give homeowners greater control over the recovery process.
Survivors would retain the right to choose the contractor or restoration company performing the work, while insurance adjusters handling wildfire smoke claims would face new training and certification requirements.
The changes come after survivors of the devastating 2025 Los Angeles-area wildfires reported difficulties obtaining adequate assistance for smoke-damaged properties.
The issue has remained particularly contentious because some homes escaped structural destruction but were still affected by hazardous smoke and ash.
Los Angeles County has also sued State Farm over its handling of wildfire claims, alleging delays, underpayments and problems involving smoke-damaged homes. State Farm has disputed allegations of systematic wrongdoing and says it has paid more than $6.2 billion in wildfire-related claims, including about $1 billion connected to smoke damage.
California Could Set a National Example
The legislation could have implications beyond California.
Wildfires are becoming a growing insurance challenge across the United States, but standards for determining and remediating smoke contamination remain inconsistent. California’s approach could therefore become a model for other states facing similar disasters.
The California Department of Insurance says the new framework would rely on public-health standards developed by the state’s Department of Toxic Substances Control, while the State Air Resources Board could develop interim guidance for indoor contaminants.
That could eventually make smoke-damage claims less dependent on individual negotiations between homeowners and insurers.
Insurance Industry Faces Greater Accountability
For insurers, however, the new requirements could increase claims-handling costs and create additional obligations following major fires.
California’s insurance market is already under significant pressure from wildfire losses. Insurers have reduced exposure in some high-risk areas, while homeowners have increasingly turned to the state’s FAIR Plan when private coverage is unavailable.
The challenge for policymakers is therefore balancing stronger consumer protections with an insurance system that remains financially viable.
For wildfire survivors, the immediate priority is simpler: knowing whether a home is safe and ensuring their insurance policy provides meaningful support for getting back there.
AB 1795 represents a significant step toward that goal. If signed into law, California would establish clearer standards for smoke-damaged homes and create new responsibilities for insurers—potentially changing how wildfire insurance claims are handled across the state.
Source Angle: California Department of Insurance reporting on AB 1795, supported by current coverage from the Los Angeles Times and Reuters on wildfire insurance disputes and smoke-damage claims.
