In summary
Gov. Gavin Newsom signed laws that detail insurers’ responsibilities in addressing smoke damage in homes. Some survivors from the Los Angeles County fires have yet to return home because of insurance disputes.
California will set first-in-the-nation standards for smoke-damage testing and cleanup after the governor on Tuesday signed a package of bills to improve wildfire recovery.
Almost two years after the deadly Los Angeles County fires, many survivors have yet to return to homes that did not burn down but may not be habitable because of smoke damage. They have complained that the delays are due in part to arguments with their insurance companies over who should pay for testing and cleanup. The state Insurance Department estimates that more than 13,000 smoke-damage claims came out of the January 2025 fires.
“These new protections will make insurer obligations clearer and give homeowners more financial flexibility when they need it most,” Gov. Gavin Newsom said as he signed the bills in Altadena at a meeting with Eaton Fire survivors. They take effect Jan. 1.
Assembly Bill 1642, authored by Assemblymember John Harabedian, a Democrat representing Pasadena, directs the Department of Toxic Substances Control to create standards for lead and asbestos testing, repair and removal by the end of 2028. It will have to establish similar standards for other toxic materials and contaminants by the end of 2029. Until the new standards are created, existing federal and state standards around lead and asbestos exposure will apply.
AB 1795 creates the legal presumption that smoke damage in a fire zone came from the fire, and requires insurance companies to pay for testing and remediation based on the impending standards.
“For homeowners who have already lost so much in a fire, the last thing a family should have to do is fight for a clear answer about whether it is safe to return home,” said Assemblymember Mike Gipson, a Carson Democrat and author of AB 1795, in a statement.
The insurance department, fire survivors and Los Angeles County have filed lawsuits or other legal action against State Farm and the last-resort FAIR Plan over their handling of smoke-damage claims. Last week, the county launched an investigation into Farmers over similar issues.
Other related bills by Harabedian became law after the governor signed them Tuesday, including AB 1842, which creates a statewide mortgage forbearance program for homeowners whose homes are deemed uninhabitable after a major disaster. Under the law, mortgage providers would be prohibited from charging penalties or late fees while homeowners pause payments.
Also Harabedian’s is AB 1847, which extends mortgage forbearance to 24 months for survivors of the Los Angeles County fires, and extends the latest possible deadline for a borrower’s request for forbearance to Jan. 7, 2029.
