California lawmakers introduced legislation designed to standardize how insurers handle wildfire smoke damage claims. The proposal follows major fires that contaminated thousands of homes across the state.
The measure, called the Smoke Damage Recovery Act, was introduced by Ricardo Lara and Mike Gipson.
Officials describe the proposal as the first statewide framework in the United States addressing insurance claims related specifically to wildfire smoke contamination.
The legislation arrives after the Eaton and Palisades wildfires in January 2025 destroyed thousands of properties in the Los Angeles region and left many additional homes contaminated by smoke, soot, ash, and combustion residues.
Insurance filings surged after the disasters. Between January and November 2025, more than 42,000 claims were submitted related to those fires. Over 13,000 involved homes that remained structurally intact but sustained smoke damage.
The proposed law would introduce statewide protocols for evaluating and restoring properties affected by wildfire smoke. Contaminated homes would require inspection and remediation to ensure they meet health and safety standards before residents return.
Lara said the absence of uniform standards has created disputes between insurers and homeowners during claims handling.
The commissioner argued clear rules would reduce uncertainty for families attempting to restore damaged properties.
Gipson said the legislation aims to simplify the recovery process for policyholders who often face complicated insurance disputes after large wildfire events.
The proposal follows a report issued by the California Department of Insurance Smoke Claims and Remediation Task Force.
The group conducted a nine-month review involving public health experts, fire safety specialists, industrial hygienists, consumer advocates, and insurance industry representatives.
The task force found significant gaps in current inspection and remediation practices used during smoke damage claims.
Members concluded statewide standards could provide clearer guidance for insurers and improve safety outcomes for homeowners.
Amy Bach of United Policyholders, who participated in the task force, said consistent standards are necessary to reduce disputes involving smoke contamination claims.
The Smoke Damage Recovery Act includes several regulatory provisions. The bill would establish statewide protocols for inspection, testing, and sampling of smoke-related contaminants inside residential properties.
Insurers would be required to follow defined remediation standards to restore homes to pre-loss condition.
The measure would also prevent insurers from terminating Additional Living Expenses benefits until properties are certified safe for occupancy.
The bill requires insurers to inspect smoke damage claims within 30 days after receiving notice and establishes timelines for claims payments to accelerate recovery funding.
Another section creates training and certification programs for professionals performing smoke damage inspections, environmental testing, and remediation work.
The legislation also allows policyholders to rely on standards issued by state or local environmental and health agencies if those standards are published before the bill’s full implementation. These provisions would allow earlier use of official testing benchmarks during claims disputes.
