Topline:
California legislators passed two bills Monday that would require insurance companies to follow new state rules for testing and cleaning homes contaminated by toxic smoke as the result of fires. Gov. Gavin Newsom has until the end of this month to sign the bills into law.
The details: Assembly Bills 1642 and 1795 would work in tandem to establish what Assemblymember John Harabedian, the author of one of the bills, calls “first-in-the-nation testing and remediation standards based on science.”
Why it matters: Some testing results in the Eaton Fire burn zone have found many homes still tested positive for lead and asbestos, even after professional remediation. Many survivors still haven’t returned to homes left standing, but covered in toxic ash, because they’re still battling their insurance companies to pay for testing and remediation.
Next steps: Under the legislation, insurance companies would be required to keep paying for policyholders' additional living expenses until their property has been restored to pre-fire condition and cleared for occupancy. The legislation calls on the state’s Department of Toxic Substances Control to establish those testing and cleaning standards for lead and asbestos by Dec. 31, 2028. The department would need to establish guidance on heavy metals and other contaminants by Dec. 31, 2029.
Read on… to learn why insurance industry groups opposed the bill.
California legislators passed two bills Monday that would require insurance companies to follow new state rules for testing and cleaning homes contaminated by toxic smoke as the result of fires.
Gov. Gavin Newsom has until the end of this month to sign the bills into law.
Assembly Bills 1642 and 1795 would work in tandem to establish what Assemblymember John Harabedian, the author of one of the bills, calls “first-in-the-nation testing and remediation standards based on science.” One change would require insurance companies to keep paying policyholders' additional living expenses until their property has been restored to pre-fire condition and cleared for occupancy.
Harabedian, whose district includes Altadena, said a lack of clear, post-fire cleaning rules has left survivors of the Eaton and Palisades fires to battle with their insurers over testing for, and remediation of, harmful contaminants.
If such rules had been in place after last year’s devastating L.A. fires, Harabedian said, “a lot of the survivors now, who are dealing with smoke damage, would be back in their homes.”
He said many of his constituents are now “trying to afford rent, trying to get the remediation and cleanup done to a satisfactory level."
"And, frankly," he added, "they're spending a lot of the money they need to rebuild their lives in litigation and disputes with their insurance companies.”
Their homes survived, but they still haven’t returned
Last year, a group of residents affected by the Eaton Fire released testing results that found many homes still tested positive for lead and asbestos, even after professional remediation.
Dawn Fanning, managing director of Eaton Fire Residents United, said she likely will not be able to return to her home until 2027 because of ongoing disputes with her insurance company.
“The night of the fire was traumatic,” Fanning said. “But what I and thousands of others have had to go through since then is more traumatic — at least for me. Being constantly gaslit and delayed and denied, it’s just an absolute nightmare.”
The legislation calls on the state’s Department of Toxic Substances Control to establish those testing and cleaning standards for lead and asbestos by Dec. 31, 2028. The department would need to establish guidance on heavy metals and other contaminants by Dec. 31, 2029.
What will the changes mean for CA’s strained insurance market?
Proponents say the rules will also protect renters seeking answers on when their homes are safe to reoccupy. Some renters who lived near Eaton and Palisades fire burn zones have felt pressured by their landlords to return to homes they believed were not adequately cleaned.
Opponents of the legislation — which included insurance industry groups, the California Association of Realtors and the San Diego Gas and Electric Company — argued the proposals inappropriately strip oversight and regulation from the California Department of Insurance.
“Given the complexity of smoke within insurance claims, CDI convened a Smoke Claims and Remediation Task Force in the Summer of 2025,” the insurance industry groups wrote in a joint letter to state legislators earlier this year.
They added that the legislation “usurps the ongoing work of the CDI and subsequent policy negotiations.”
When asked if imposing new requirements on insurers could raise premiums for homeowners already seeing spikes in home insurance coverage, Harabedian said he felt the change could actually stabilize costs.
“There have been millions, if not billions, of dollars spent in these insurance disputes,” he said. “The rates that we are currently paying are baking those costs in, because it is so inefficient. I think survivors and — I think — insurance companies want certainty.”
