California Insurance Commissioner Ricardo Lara and Assemblymember Mike Gipson have introduced legislation that could fundamentally reshape how wildfire smoke damage insurance claims are handled in California. The proposed Smoke Damage Recovery Act (AB 1795) aims to create the nation’s first statewide framework governing inspection, testing, and remediation of wildfire smoke damage in homes.

The legislation follows months of controversy after the January 2025 Eaton and Palisades Fires, which destroyed thousands of homes and left many more contaminated by smoke, soot, ash, and other toxic combustion byproducts. According to the California Department of Insurance, more than 42,000 insurance claims were filed between January and November of last year, including over 13,000 claims involving homes that remained standing but were contaminated by smoke.

Wildfire smoke claims have become one of the most contentious issues in California property insurance. When homes remain standing but are infiltrated by toxic particles, disputes often arise over what constitutes proper restoration to pre-loss condition.

Currently, no uniform statewide standards exist governing how smoke contamination must be evaluated or remediated. As a result, homeowners, insurers, remediation contractors, and public health experts often rely on competing methodologies and inconsistent testing protocols.

The bill follows the release of a 64-page report from the California Department of Insurance’s Smoke Claims and Remediation Task Force, 1 a nine-month effort involving public health experts, fire safety specialists, industrial hygienists, remediation professionals, consumer advocates, and insurance industry representatives.

The task force concluded that wildfire survivors are frequently falling through gaps in smoke damage inspection, testing, and restoration standards. Participants broadly agreed that statewide standards are needed to protect homeowners and provide clear direction to insurers on how claims should be handled.

Consumer advocates emphasized that policyholders often face lengthy disputes when trying to prove contamination and obtain proper remediation. Amy Bach, Executive Director of United Policyholders and a task force member, noted:

“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.”

AB 1795 would create a comprehensive regulatory framework for handling smoke damage claims. Key provisions include:

  • Statewide protocols for inspection, sampling, and testing of smoke-related contaminants in homes
  • Uniform remediation standards insurers must follow to restore homes to pre-loss condition
  • Protection of Additional Living Expense (ALE) benefits until homes are cleared as safe for habitation
  • A requirement that insurers inspect smoke damage claims within 30 days of notice
  • Mandatory timelines for claim payments to ensure prompt benefits
  • Training and certification programs for professionals performing smoke damage assessments and remediation

The legislation would also direct agencies such as the California Environmental Protection Agency (CalEPA) and the Department of Insurance to develop and enforce science-based standards governing smoke contamination and restoration.

One notable feature of the bill is an “early action” provision intended to help survivors of recent wildfires. If state or local health agencies adopt specific standards for smoke testing or remediation, those standards could be used immediately to support and expedite insurance claims.

The goal is to reduce the delays and disputes that have plagued smoke damage claims following recent California fires.

If enacted, California would become the first state in the country to adopt health-based insurance standards specifically addressing wildfire smoke damage. Given the increasing frequency and severity of wildfires across the western United States, the framework could become a model for other states confronting similar issues.

The legislation is expected to be referred to an Assembly policy committee and could be heard as early as next month.

For wildfire survivors and insurance professionals alike, AB 1795 signals that California policymakers are moving toward clearer rules governing one of the most complex and disputed categories of property insurance claims.

1 Report of the Smoke Claims and Remediation Task Force to Insurance Commissioner Ricardo Lara and Other Interested Stakeholders. Cal. Dept. of Ins. (March 9, 2026). See also, list of Appendices to the Report.