Recovery efforts following the devastating Los Angeles wildfires are now moving into the legislative phase, as California Insurance Commissioner Ricardo Lara and Assemblymember Mike Gipson have introduced the Smoke Damage Recovery Act, AB 1795. The measure would establish a statewide framework for handling wildfire smoke damage insurance claims, which officials say would be the first of its kind in the nation.
The legislation comes in response to an unprecedented period of wildfire destruction in California. The Eaton and Palisades fires in January 2025 destroyed thousands of homes and left many others standing but contaminated by smoke, soot, ash, and other hazardous combustion byproducts. From January through November 2025, more than 42,000 insurance claims were filed in connection with those fires, including more than 13,000 involving homes that remained structurally intact but sustained smoke damage.
AB 1795 is intended to create uniform standards for evaluating and restoring homes affected by wildfire smoke. Under the proposal, contaminated properties would be subject to proper inspection and remediation requirements so they can be returned to safe and habitable condition. The bill would also establish accountability measures for insurers that fail to meet those standards.
According to Commissioner Lara, the absence of consistent statewide standards has created significant challenges for families navigating 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 Gipson said the legislation is aimed at making recovery more straightforward for policyholders in the aftermath of 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.”
The proposal follows the release of a report from the California Department of Insurance’s Smoke Claims and Remediation Task Force, a nine-month initiative that brought together public health experts, fire safety professionals, smoke remediation specialists, industrial hygienists, consumer advocates, and representatives from the insurance industry.
The task force found that wildfire survivors currently face notable gaps in the inspection, testing, and restoration of smoke-damaged homes. Participants agreed that statewide standards would provide clearer guidance for insurers and improve safety outcomes for homeowners.
Amy Bach, executive director of United Policyholders and a member of the task force, said consistent standards are essential to reducing 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’s 64-page report included recommendations from wildfire survivor groups as well as a review of relevant scientific and technical research. It also identified areas of disagreement among experts and stakeholders over inspection and restoration practices, underscoring the Legislature’s role in establishing clear, enforceable standards through the public policymaking process.
If enacted, the Smoke Damage Recovery Act would introduce several key requirements for smoke damage claims and remediation. Among them, the bill would create statewide protocols for the inspection, sampling, and testing of smoke-related contaminants in residential properties; require insurers to follow consistent remediation standards aimed at restoring homes to pre-loss condition; prohibit insurers from terminating Additional Living Expense benefits until a home has been cleared as safe for habitation; require inspections of smoke damage claims within 30 days of notice; establish payment timelines to promote prompt claim disbursement; and create training and certification programs for professionals involved in smoke damage assessment, testing, and restoration.
The bill also includes an early-action provision allowing policyholders to rely immediately on any interior smoke testing, screening, or restoration standards issued by a state or local health or environmental agency in order to support and expedite their claims.
If passed, AB 1795 would direct multiple state agencies, including the California Environmental Protection Agency and the California Department of Insurance, to develop and enforce science-based guidance for wildfire smoke damage claims. Supporters say the bill, together with the task force recommendations, represents a significant step toward a more consistent and structured approach to smoke-damage recovery across California.
AB 1795 is expected to be heard next month after referral to an Assembly policy committee.