California becomes first state to pass requirements for insurers to clean smoke damage after fires

The Palisades and Eaton Fires last year destroyed thousands of homes in Los Angeles County. Thousands more were left standing, but choked with toxic fire residue.

On Tuesday, Gov. Gavin Newsom signed a package of bills that will make California the first state in the nation to establish smoke damage testing and cleaning standards for insurance companies.

Assembly Bills 1642 and 1795 will require insurers to test for smoke damage, cover the cost of cleaning contaminants, and keep paying for a homeowner’s alternative living expenses until the home is found safe to reoccupy.

The California Department of Toxic Substances Control will have until the end of 2028 to develop testing and cleaning standards for lead and asbestos, and until the end of 2029 to set rules for heavy metals and other pollutants.

Reaction to the bill

According to the state Department of Insurance, property owners filed 13,000 smoke damage claims for standing homes after the January 2025 fires. While insurers have covered testing and cleaning in many cases, other homeowners are still unable to return home as they battle with insurance companies over addressing smoke damage.

In a news release Tuesday, the governor and an author of one of the bills praised the changes to state law.

“These new protections will make insurer obligations clearer and give homeowners more financial flexibility when they need it most,” Newsom said.

Assemblymember John Harabedian said: “Science, not an insurance company’s opinions, will determine whether a home is safe.”

Insurance industry groups had opposed shifting rules and regulation away from the state Department of Insurance and to the Department of Toxic Substances Control.

Altadena residents pushed for change

Testing efforts by a group known as Eaton Fire Residents United found that lead, asbestos and heavy metals were still present in homes even after they were cleaned by professional remediation companies. Jane Lawton Potelle is the group’s executive director.

“California is leading the nation in how to recover safely after an urban wildfire,” she said in a news release about the laws’ passage.

Public health officials said smoke from the L.A. County fires was particularly toxic because it emanated from urban areas. The structures that burned often had lead paint and asbestos insulation.

The fires also destroyed cars, appliances and other human-made materials. This created more pollutants than smoke from fires in rural areas, which mainly burn through vegetation.

LAist covered the push to change smoke damage policies in a recent episode of our podcast Imperfect Paradise, which breaks down what these changes could mean for insurers, homeowners and how California adapts to climate change.