California Enacts Standards for Wildfire Smoke Damage Insurance Claims

California has enacted new requirements for investigating, testing, and restoring homes affected by wildfire smoke.

Evacuations and firefighting response

Gov. Gavin Newsom signed AB 1795, the Smoke Damage Recovery Act, authored by Assemblymember Mike Gipson and sponsored by Insurance Commissioner Ricardo Lara.

According to the California Department of Insurance, the law establishes the nation’s first enforceable standards for handling smoke-damaged homes.

The legislation developed from efforts involving the department, wildfire survivors, consumer advocates, public health experts, and lawmakers.

The groups sought to address issues surrounding smoke contamination and insurance claims following major California fires.

AB 1795 establishes a presumption that smoke damage within a wildfire impact zone resulted from the wildfire.

The provision is intended to reduce uncertainty over the source of smoke contamination when policyholders file claims.

The law also requires insurers to pay for necessary testing and sampling of affected properties.