Gov. Gavin Newsom has signed two laws aimed at addressing a problem that came into sharp focus after the January 2025 Los Angeles County wildfires. Thousands of homes survived the flames but were exposed to smoke and potentially hazardous contaminants.
Some residents have yet to return home amid disputes with insurers over testing and cleanup. The California Department of Insurance estimates the fires generated more than 13,000 smoke-damage claims.
Smoke from burned homes, vehicles, electronics and other materials may carry contaminants that settle on walls, floors, furniture and other surfaces. A home therefore may require testing and remediation even when there is little or no visible fire damage.
California has lacked uniform statewide standards for determining when a smoke-contaminated home was safe to occupy. That left homeowners and insurers debating which contaminants should be tested for, what levels posed a health concern and how extensively homes needed to be cleaned.
The new laws aim to provide a path to coverage for smoke-damage costs.
Insurers responsible for testing
Assembly Bill 1795, the Smoke Damage Recovery Act, creates a presumption that smoke damage within a designated wildfire impact area resulted from the wildfire.
The new law:
- Requires insurers to pay for necessary testing and sampling.
- Bars insurers from terminating qualifying Additional Living Expense benefits until a home has been restored and is considered safe to occupy.
- Establishes timelines for inspections and claim handling.
- Requires cost estimates for restoring a home to its condition before the smoke damage.
- Retains the homeowner’s right to select restoration contractors.
- Establishes training requirements for insurance adjusters handling smoke-damage claims.
State to develop safety standards
Another bill, AB 1642, addresses a related issue: how to determine when a contaminated home is clean enough to live in again.
The law, authored by Assemblymember John Harabedian of Pasadena, directs the California Department of Toxic Substances Control to develop standards for testing and removing contaminants carried by smoke within the next two years.
The contaminants addressed by the new law include those in the so-called CAM-17 panel, which includes heavy metals like beryllium and lead. Separately, the law calls for testing for other toxins like cyanide, manganese and lithium.
The legislation also calls for homes exposed to wildfire smoke to be tested before and after remediation, creating a more consistent process for determining whether cleanup has been successful.
What homeowners should know
The laws could be particularly important after future wildfires in which a house escapes direct fire damage but smoke, ash and debris enter the structure.
If your home is affected by a wildfire, document conditions, promptly report potential smoke damage to your insurer and keep records of communications, testing and expenses. Before beginning significant cleanup or repairs, discuss the claim with your insurer and confirm what documentation it requires.
The new laws should make coverage decisions more consistent and predictable and provide homeowners with a clearer path to determining when it is safe to return home.