California Law Strengthens Smoke Damage Claims
New protections for California homeowners simplify the insurance process for smoke damage from fires.
Updated on Oct. 5, 2026 in Insurance
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Governor Gavin Newsom signed Assembly Bill 1795 into law, creating a legal presumption that smoke damage within a wildfire impact area is caused by that fire. This measure aims to bridge gaps in consumer protection for households dealing with smoke-related property claims.
Why it matters
The legislation addresses historical challenges where policyholders were frequently denied coverage for necessary smoke testing and remediation. It ensures that insurers must cover restoration costs to meet health and safety standards while preventing the premature termination of living expense benefits.
The new law follows documented coverage disputes arising from a 491,000-square-foot warehouse fire and June wildfires in Los Angeles. While the legislation creates a new legal presumption for smoke damage, the full financial impact on future insurance premiums remains unknown.
The players
Gavin Newsom
The Governor of California who signed the legislation into law.
Mike Gipson
The Assemblymember who authored the legislation to protect property insurance consumers.
California Department of Insurance
The state agency responsible for developing new regulatory recommendations for property claims.
CalOES
The state office tasked with evaluating smoke damage challenges alongside regulators.
The details
The law mandates that insurers pay for required smoke testing and sampling while requiring that repair estimates restore homes to pre-loss condition. Additionally, insurance adjusters are now subject to specific training requirements, and carriers are prohibited from ending Additional Living Expense benefits until a home is certified as safe for occupancy. The measure also provides new protections for workers performing remediation, ensuring smoke-damaged properties are fully addressed.
Timeline
June 2026: Wildfires occurred in Los Angeles.
June 2026: A Lineage Logistics warehouse fire occurred in Boyle Heights.
October 5, 2026: Governor Gavin Newsom signed Assembly Bill 1795 into law.
Money Landscape
Assembly Bill 1795 represents a shift in California insurance regulation by formalizing protections for homeowners facing smoke damage. This development follows a period of coverage disputes that highlighted systemic gaps in how insurers handle claims after major fires.
Homeowners in California should review their current property insurance policies to understand their existing coverage for smoke remediation. Consult with a qualified insurance professional to determine how these new mandates might apply to future claims or current restoration efforts.
The takeaway
This law provides a critical, legally mandated path for homeowners to receive coverage for smoke damage testing and restoration. If you have pending or prior smoke damage claims, discuss with a licensed professional whether these new protections impact your settlement status.
Further reading
For more on managing policyholder rights, visit Insurance.
Source note: This article includes information reported by Insurance Journal.
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