Smoke Damage Insurance Claims in California: What AB 1795 Means for You

March 18, 2026
Johanna Namir

If your home was in the path of the January 2025 Los Angeles wildfires the Eaton Fire, the Palisades Fire, or any fire declared a state of emergency you may have filed a smoke damage insurance claim and hit a wall. Claims denied. Testing refused. Inspections delayed. Payouts that don’t cover what it actually costs to make your home safe again.

You are not alone, and California lawmakers are responding.

Assembly Bill 1795, known as the Smoke Damage Recovery Act, is a landmark piece of legislation introduced by Assemblymember Mike Gipson and co-sponsored by Insurance Commissioner Ricardo Lara.1 If passed, it would create California’s first legally enforceable standards for how wildfire smoke damage insurance claims must be tested, evaluated, and paid  giving homeowners powerful new protections to hold insurers accountable.

Here’s what AB 1795 means for you.

Why Smoke Damage Claims Have Been So Difficult

Unlike a burned-down structure, smoke damage is invisible. Wildfire smoke carries a toxic mixture of particulate matter, volatile organic compounds, heavy metals, and combustion byproducts that penetrate walls, floors, ceilings, and HVAC systems.2 The damage is real and the health risks are long-term but without universally recognized testing standards, insurers have had wide latitude to dispute, minimize, or outright deny claims.

The bill itself acknowledges the crisis directly. According to the Legislature’s findings in AB 1795, “thousands of smoke damage insurance claims have been filed as a result of these fires,” and the lack of standards “prompted complaints from survivors that their insurance companies have completely or partially denied their smoke damage claims.”3

As the Legislature found, this “caused a patchwork of claims handling practices by insurance companies.”4 AB 1795 is designed to close that gap.

What AB 1795 Requires: A Homeowner’s Guide

1. Science-Based Testing Standards — Statewide, By 2027

The bill directs CalEPA to develop, by June 30, 2027, minimum standards for sampling, testing, and chemical screening of smoke-damaged residential properties.5 These standards will cover pre-remediation testing, post-remediation testing, and clearance for habitation.6

Standards will be tiered based on distance from the fire perimeter:7

Zone Distance from Fire Perimeter
High-Impact Zone Within 6 miles
Moderate-Impact Zone 6–12 miles
Low-Impact Zone Beyond 12 miles

 

There is a rebuttable presumption built into the bill: if your home is in the high-impact zone, your claim is automatically classified as high-impact  the insurer must prove otherwise, not you.8

2. Your Insurer Now Has a Clock to Beat

Under AB 1795, insurers must inspect your property no later than 30 calendar days after receiving notice of your claim, or after access is granted.9 After inspection, actual cash value must be paid within 30 days, and replacement cost within 15 days of receiving your contractor contract.10 Late payments accrue interest.11

3. Your Insurer Pays for Required Testing

The insurer is responsible for the cost of all sampling and testing required under the bill’s standards.12 You should not have to pay out of pocket to prove your home is contaminated.

4. Your ALE Cannot Be Cut Off Prematurely

AB 1795 prohibits your insurer from terminating additional living expense (ALE) benefits until your home has been officially cleared for habitation under the new CalEPA standards.13

5. You Get to Choose Your Contractor

The bill explicitly gives policyholders the right to select the vendor or contractor who performs restoration on their home.14 Any contractor hired by the insurer must hold the required license, training, and certification.15

6. Local Standards Can Help You Now — Before 2027

If any local or state agency has already issued specific guidance for your wildfire, those standards apply to your insurance claim immediately without waiting for the 2027 CalEPA framework.16

7. What You Should Do Right Now

  1. File your claim promptly. AB 1795 requires notice within 120 days of the fire reaching 100% containment.17
  2. Document everything. Photograph and video all surfaces, HVAC systems, and contents before any cleaning begins.
  3. Request pre-remediation testing in writing. Ask your insurer to conduct or pay for testing before cleanup starts.
  4. Check for local guidance. LA County and state agencies may have issued applicable standards. Cite them in your claim.18
  5. Do not agree to early ALE termination. Your benefits continue until your home is cleared as safe.
  6. File a complaint with the Department of Insurance if your insurer fails to comply. Violations are classified as unfair practices under California Insurance Code.19

The Bigger Picture

AB 1795 is described by its sponsors as a “nation’s first.” The bill was most recently amended on March 16, 2026, and is actively moving through the California legislature.20 For homeowners who have spent months fighting a smoke damage insurance claim in California, this bill is the acknowledgment you’ve been waiting for: that your damage is real, your claim is valid, and the system owes you a fair fight.

Citations

  1. AB 1795, Smoke Damage Recovery Act, Cal. Leg. 2025–26 Reg. Sess. (introduced Feb. 10, 2026; amended Mar. 16, 2026). Author: Assemblymember Mike Gipson; co-sponsored by Insurance Commissioner Ricardo Lara.
  2. AB 1795 § 2(a)(4): Legislative findings on “particulate matter, gases, heavy metals, volatile organic compounds, and other pollutants.”
  3. AB 1795 § 2(a)(2): Legislative findings on smoke damage claim denials.
  4. AB 1795 § 2(a)(3): Legislative findings on inconsistent claims-handling practices.
  5. AB 1795 § 3, adding Health & Safety Code § 25405(a): CalEPA standards due “on or before June 30, 2027.”
  6. AB 1795 § 3, Health & Safety Code § 25405(a): Standards to include preremediation, postremediation, and clearance testing.
  7. AB 1795 § 3, Health & Safety Code § 25405(b)(1) and (g)(2)–(4): Zone definitions by distance from fire perimeter.
  8. AB 1795 § 6, Insurance Code § 2060.2(d)(1): Rebuttable presumption of high-impact classification.
  9. AB 1795 § 6, Insurance Code § 2060.2(f)(1): 30-day inspection requirement.
  10. AB 1795 § 6, Insurance Code § 2060.2(f)(2)–(3): ACV payment within 30 days; replacement cost within 15 days of contractor contract.
  11. AB 1795 § 6, Insurance Code § 2060.2(f)(4): Late payments accrue interest pursuant to Section 2057.
  12. AB 1795 § 6, Insurance Code § 2060.2(d): Insurer responsible for testing costs.
  13. AB 1795 § 5, adding Insurance Code § 2060.1(a): ALE termination prohibition until property cleared for habitation.
  14. AB 1795 § 6, Insurance Code § 2060.2(g): Policyholder’s right to select restoration contractor.
  15. AB 1795 § 6, Insurance Code § 2060.2(g): Licensing and certification requirements for insurer-hired contractors.
  16. AB 1795 § 6, Insurance Code § 2060.2(b)–(c): Early action provision; local standards apply immediately.
  17. AB 1795 § 6, Insurance Code § 2060.2(h)(1): 120-day notice requirement after 100% containment.
  18. AB 1795 § 6, Insurance Code § 2060.2(c): Local standards apply to open, pending, or disputed claims.
  19. AB 1795 § 6, Insurance Code § 2060.2(i): Violations constitute unfair practices under Cal. Ins. Code § 790 et seq.
  20. AB 1795, amended in Assembly, March 16, 2026. Cal. Leg. 2025–26 Reg. Sess.

This article is for informational purposes only and does not constitute legal or insurance advice. If you have a disputed smoke damage claim, consult a licensed public adjuster or attorney.