California requires insurers to cover smoke cleanup after fires
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Governor Gavin Newsom signed two bills into law in California requiring insurance companies to cover smoke testing, contamination cleanup, and temporary housing for residents impacted by fires.
Following the January 2025 Palisades and Eaton fires in Los Angeles County, 13,000 smoke damage claims were filed by homeowners whose properties remained standing. These new laws, Assembly Bills 1642 and 1795, clarify insurer duties when processing these claims, mandating evaluation for smoke-related contamination and coverage of necessary remediation.
The legislation also requires insurers to continue paying for temporary housing while homes are uninhabitable due to contamination. California’s Department of Toxic Substances Control will develop standards for testing and cleanup of lead and asbestos by the end of 2028, and for other pollutants by the end of 2029. Advocates like Eaton Fire Residents United, led by Jane Lawton Potelle, have found lingering contaminants in homes even after initial cleaning, highlighting the need for clear standards.
Assemblymember John Harabedian championed the bills, arguing that scientific evidence, not insurance company opinions, should determine home safety. Insurance industry groups opposed giving the Department of Toxic Substances Control the authority to create these rules, preferring the Department of Insurance handle it. The new laws aim to reduce disputes between homeowners and insurers and establish consistent, science-based standards for smoke damage claims across the state.
