Assembly BillChaptered/SignedHealth and Safety
AB 1795: Smoke Damage Recovery Act.
What AB 1795 does, verified September 17, 2026
<p>The Smoke Damage Recovery Act requires the California Environmental Protection Agency (CalEPA) to develop health-based standards for sampling, testing, and chemical screening of residential properties damaged by smoke from wildland-urban interface fires or urban conflagrations. By June 30, 2027, CalEPA must establish training and certification requirements for professionals inspecting, evaluating, and restoring such properties. The bill also mandates that insurers cannot terminate additional living expenses coverage until the property is cleared for habitation, with a presumption regarding damage classification and insurer responsibility for sampling and testing costs.</p> <p>The legislation establishes a 30-day inspection period for insurers upon claim notice or access grant, followed by payment of actual cash value within 30 days post-inspection. Replacement cost payments are due w…
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Last action: Chaptered by Secretary of State - Chapter 240, Statutes of 2026. (2026-09-15)Alert me
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| Sep. 15, 2026 | Chaptered by Secretary of State - Chapter 240, Statutes of 2026. |
| Sep. 15, 2026 | Approved by the Governor. |
| Sep. 11, 2026 | Enrolled and presented to the Governor at 10 a.m. |
| Aug. 31, 2026 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 58. Noes 7.). |
| Aug. 31, 2026 | Assembly Rule 63 suspended. |
Latest bill textChaptered version, September 15, 2026 · 6,492 words
Assembly Bill No. 1795
CHAPTER 240
An act to add Article 2.5 (commencing with Section 25544) to Chapter 6.95 of Division 20 of the Health and Safety Code, to add Sections 2060.1, 2060.2, 14048, and 15009.2 to the Insurance Code, and to add Section 6713 to the Labor Code, relating to smoke damage.
[ Approved by Governor September 15, 2026. Filed with Secretary of State September 15, 2026. ]
LEGISLATIVE COUNSEL'S DIGEST
AB 1795, Gipson. Smoke Damage Recovery Act.
(1) Existing law generally regulates classes of insurance, including fire and residential property insurance. Existing law specifies the measure of indemnity under an open fire insurance policy that requires payment of actual cash value or replacement cost. If there is a covered loss relating to a state of emergency, existing law requires additional living expense coverage to be for a period of no less than 24 months from the inception of the loss.
This bill, the Smoke Damage Recovery Act, would create a rebuttable presumption that if wildfire smoke, ash, soot, char, or combustion byproducts are present in a surviving residential property in the wildfire impact zone after a wildfire, then smoke damage in the property is the result of that wildfire. The bill would prohibit an insurer from terminating additional living expenses coverage for a residential property insurance smoke damage claim for a property within the wildfire impact zone until the property has been restored to preloss condition and cleared for human occupancy, as specified. The bill would require specified regulations and guidance to apply to these claims within the wildfire impact zone. The bill would make an insurer responsible for the cost of sampling and testing that is necessary to restore a damaged property to its preloss condition and render it cleared for human occupancy. If a residential property has been cleared for human occupancy, the bill would require a claim for recontamination to be considered a new claim. The bill would require an insurer that chooses to exercise its right to inspect a smoke-damaged property to inspect the property as soon as practicable, but no later than 30 calendar days after receiving notice of the claim or, if applicable, no later than 30 calendar days after access to the property is granted. The bill would require the insurer to pay the actual cash value of the cost to restore the damaged personal property to its preloss condition no later than 30 calendar days after the inspection, unless the policyholder has agreed to restoration by the insurer. For damaged residential property, the bill would also require the insurer to pay the undisputed amount of replacement cost, up to the applicable policy limits, within 30 calendar days from the date the restoration is completed, unless the policyholder has agreed to restoration by the insurer. For a portion of a smoke damage claim pertaining to the replacement of covered personal property, the bill would require the insurer to pay the undisputed amount of the replacement cost of the personal property within 30 days from the date the insurer was provided with a receipt for purchase of the replaced personal property.
This bill would require the Department of Insurance, in coordination with others, to conduct a study on or before July 1, 2027, that, among other things, identifies the gaps in insurance coverage exposed by the Lineage Logistics (Lineage) warehouse fire in the Boyle Heights community in the City of Los Angeles, which broke out on June 17, 2026, including additional living expense coverage and business interruption coverage in the absence of a mandatory evacuation order triggering the coverage. The bill would require the department, on or before December 1, 2027, to submit a final written report detailing the findings and recommendations of the study to the Governor and Legislature, and would require the study to be posted on the department’s public internet website.
(2) Existing law, the Insurance Adjuster Act, generally regulates the licensing of insurance adjusters. Existing law, the Public Insurance Adjusters Act, generally regulates the licensing of insurance adjusters. The acts set forth various requirements with respect to operation as an insurance adjuster or public insurance adjuster.
This bill would require the Department of Insurance to develop training and certification programs for insurance adjusters and public insurance adjusters in inspecting, evaluating, sampling, or testing smoke damage caused by a wildfire involving residential properties. The bill would require an insurer, adjuster firm, or qualified manager to train and accredit its adjusters in accordance with specified regulations and guidance, and would require a public insurance adjuster hired by an insured to adjust smoke damage claims to have the requisite license, training, and certification.
(3) Existing law establishes the Division of Occupational Safety and Health and the Occupational Safety and Health Standards Board within the Department of Industrial Relations and sets forth their powers and duties relating to the adoption of health and safety standards for workers.
This bill would require the Division of Occupational Safety, on or before July 1, 2029, to propose to the Occupational Safety and Health Standards Board regulations to protect the health and safety of employees performing work on residential properties that have sustained smoke or fire damage as a result of a wildfire. The bill would require the regulations to include requirements for the certification of individuals who perform that work and would authorize the regulations to establish fees for certification, which would be deposited into the newly created Wildfire Remediation and Restoration Certification and Training Fund for use, upon appropriation by the Legislature, to cover the costs of administering and enforcing the related requirements and regulations.
(4) Existing law establishes the Office of Emergency Services within the office of the Governor, and sets forth its powers and duties, including responsibility for addressing natural, technological, or manmade disasters and emergencies, including activities necessary to prevent, respond to, recover from, and mitigate the effects of emergencies and disasters to people and property. Existing law also requires the California Environmental Protection Agency, in consultation with the Office of Environmental Health Hazard Assessment, to, among other things, determine which specified extremely hazardous substances pose a regulated substances accident risk, as specified.
This bill would require, on or before December 31, 2027, the Office of Emergency Services, in consultation with the California Environmental Protection Agency, to coordinate with state and local agencies and other entities, as necessary, to conduct a study that, among other things, identifies the various entities involved in the Lineage fire incident response and recovery operations, the coordination of entities involved in the incident response and recovery operations, and the various jurisdictional oversight authorities, as specified. The bill would require the state and local agencies to provide the Office of Emergency Services and the California Environmental Protection Agency with any requested assistance. The bill would require the Office of Emergency Services, on or before July 31, 2028, to submit a final written report detailing the findings and recommendations of the study to the Governor and Legislature, and would require the study to be posted on the office’s public internet website. Because the bill would require local agencies to provide specified information to state agencies, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
(5) This bill would the operation of its provisions contingent upon the enactment of AB 1642 of the 2025–26 Regular Session.
The people of the State of California do enact as follows:
SECTION 1.
This act shall be known, and may be cited, as the Smoke Damage Recovery Act.SEC. 2.
(a) The Legislature finds and declares all of the following:(1) California has experienced recordbreaking wildfires in recent years, including the Eaton Fire and Palisades Fire in January 2025 that damaged and destroyed thousands of homes and businesses. In addition to completely destroyed homes, condominiums, and apartments, thousands of residential properties suffered damage as a result of smoke, soot, char, ash, and other contaminants.
(2) Thousands of smoke damage insurance claims have been filed as a result of these fires. The lack of universally recognized and regulatory standards for the testing, evaluation, remediation, and restoration of smoke damage has prompted complaints from survivors that their insurance companies have completely or partially denied their smoke damage claims or have refused to conduct, or reimburse for, preremediation testing or postremediation clearance testing to ensure their homes have been properly restored to preloss condition.
(3) While the Department of Insurance has taken multiple executive actions to protect consumers, including issuing a bulletin to insurers reminding them of their duty to fully investigate smoke damage claims, initiating legal action against the California FAIR Plan over its failure to handle smoke damage claims within existing law, and investigating complaints from consumers, the lack of standards and unsettled case law have caused a patchwork of claims handling practices by insurance companies.
(4) Smoke, soot, char, ash, and other contaminants that emanate from wildfires cause damage to properties by depositing particulate matter, gases, heavy metals, volatile organic compounds, and other pollutants onto personal property and into the walls, floors, ceilings, surfaces, and other infrastructure of a property. Those contaminants not only compromise the integrity of the premises, but they may also pose significant, long-term health issues long after the fire has been extinguished.
(5) As property owners and tenants return to their properties and the areas that have been damaged or destroyed after a wildfire, many face uncertainty as to whether their properties have been properly remediated, restored to preloss condition, and are safe to inhabit. Property owners and tenants require assurances that their homes, other structures, and personal property, which have been impacted by contaminants, have been fully and fairly tested, have been restored to preloss condition, and are cleared for occupancy based on the minimum chemical screening levels to be established by the California Environmental Protection Agency.
(6) It is in the best interest of Californians to protect the health and safety of residents by ensuring that their properties are returned to a safe and habitable condition after suffering damage from wildfires, including smoke damage.
(7) While all property insurance policies that cover the peril of fire also cover smoke damage resulting from fire, the extent to which insurance companies are covering the remediation and restoration of properties has been inconsistent, and many residents are concerned that they will incur significant financial burden to remediate and restore their properties to preloss condition on their own.
(8) While remediation of smoke and contaminant damage is made more challenging due to the varying severity of smoke inundation on the exterior and interior of properties, regulatory standards for the minimum sampling, testing, and chemical screening levels for residential properties that have sustained smoke damage as a result of a wildland-urban interface fire or urban conflagration are vitally needed so that the Department of Insurance is able to enforce insurance companies’ remediation and restoration obligations and so that residential properties are rendered safe and habitable and restored to preloss condition.
(9) In response to the unprecedented damage caused by the January wildfires, in June 2025, Insurance Commissioner Ricardo Lara directed the Department of Insurance to lead a Smoke Claims and Remediation Task Force (Task Force), comprised of members representing consumers, public health, environmental health, fire safety, local governments, remediation and restoration specialists, industrial hygienists, and the insurance industry, to develop recommendations for uniform standards for the inspection, testing, and remediation of smoke damage in residential properties, and to determine the extent to which the remediation and restoration of those properties should be covered by residential property insurance policies. The Task Force met over several months in 2025 and has submitted its report of recommendations to the Insurance Commissioner.
(b) It is the intent of the Legislature to set forth standards and requirements for the minimum sampling, testing, and chemical screening levels for residential properties that have sustained smoke damage as a result of a wildland-urban interface fire or urban conflagration to ensure the health and safety of residents and for the proper handling of residential property insurance claims resulting from those fires after consideration of the recommendations in the Task Force Report, as well as other relevant scientific and health-based sources.
SEC. 3.
Article 2.5 (commencing with Section 25544) is added to Chapter 6.95 of Division 20 of the Health and Safety Code, to read:Article 2.5. Environmental Hazard Studies
25544.
(a) The Legislature finds and declares all of the following:(1) The Lineage Logistics (Lineage) warehouse fire in the Boyle Heights community in the City of Los Angeles, which broke out on June 17, 2026, has escalated into a prolonged, significant environmental and public health crisis. While the official cause of the fire is still under investigation, Lineage has reported that the fire started on the roof when a contractor of the owner of the solar array was testing the array. The fire involved a nearly 500,000 square foot commercial cold storage warehouse that reportedly contained refrigeration systems, rooftop solar panel infrastructure, hazardous materials, including, but not limited to, ammonia, lithium-ion batteries, more than 85,000,000 pounds of decaying food products, and other industrial equipment, that generated a substantial smoke plume. Driven by unique building materials and a massive volume of rotting food, the disaster has severely impacted the surrounding community, triggered hundreds of air quality violations, resulted in citations and fines against Lineage for unsanitary conditions, pest control violations, and odor, and exposed critical regulatory oversight limitations and failures as well as gaps in insurance coverages.
(2) Early in the blaze, an anhydrous ammonia leak from the facility’s refrigeration system caused small explosions, which impeded firefighting efforts. This toxic chemical hazard forced immediate shelter-in-place orders.
(3) The fire has resulted in a biohazard and postfire odor crisis. The facility held 85,000,000 pounds of frozen food, including meats and seafood, which, once power failed, began actively decomposing, turning the site into a major biohazard zone. Compounded by a southern California heat wave, the stench of rotting meat blanketed the area. Air regulators received nearly 1,000 complaints, issuing multiple violations to Lineage, the operator of the warehouse, for air contaminants. The decaying organic material triggered a massive infestation of giant flies, insects, and rats, creating serious sanitation concerns for nearby homes and businesses.
(4) The fire exposed severe environmental and public health impacts. The dense, specialized insulation created heavy chemical-laden smoke that spread fine particle pollution at hazardous levels across the Los Angeles Basin. Public health data revealed that emergency room visits tripled in the week following the fire for nearby residents complaining of smoke inhalation, respiratory distress, and headaches. Runoff from millions of gallons of water mixed with firefighting foam seeped directly into storm drains, carrying foam into the Los Angeles River.
(5) Cleanup operations were delayed for weeks. Due to legal and jurisdictional conflicts, work was forced to a complete standstill in early July. Roughly a month after the fire, only 4 percent of the massive, rotting food waste had been successfully cleared from the site.
(6) The same warehouse previously experienced a rooftop solar panel fire in 2024. Activists point out that Lineage normalized the hazard rather than initiating an in-depth safety review. Following the 2024 incident, multimillion-dollar electrical repairs were allegedly completed without city permits or formal safety inspections.
(7) Although a shelter-in-place order was issued at the onset of the fire, a state of emergency was declared by the Governor, and a local emergency was declared by the Mayor of the City of Los Angeles, none of these orders mandated that residents evacuate. However, several residents voluntarily left their homes because of the continued fire, the subsequent rancid odor, insect and rodent infestation, and because they were experiencing health symptoms. Since there was no mandatory evacuation order, most residential insurance policies do not cover the cost of evacuation and temporary living expenses. Also, many businesses suffered business closure or interruption due to the fire and its subsequent effects.
(8) The Lineage fire demonstrates the need to establish clear standards and protocols for governmental entities in determining when shelter-in-place orders are appropriate and when they are insufficient due to smoke and smoke-related contaminants, odor, infestation, chemical hazards, biohazards, potential health impacts, prolonged exposure, and other unsafe and unhealthy conditions, and in determining when a disaster should require a mandatory evacuation order rather than a shelter-in-place order.
(9) The Lineage fire also exposes the gaps in insurance coverage that exist in the absence of a mandatory evacuation order, even when conditions may render a home uninhabitable, and the need to modernize insurance protections for vulnerable communities facing smoke, odor, and environmental contamination as a result of complex, urban, industrial disasters. Without a mandatory evacuation order and the insurance coverages triggered thereby, residents may have no choice but to remain in their homes despite unsafe and unhealthy conditions and impacted businesses may suffer financial losses.
(b) (1) It is the intent of the Legislature to identify the regulatory oversight limitations and failures exposed by this event, including, but not limited to, any lack of coordination in the emergency response at the city, county, and state level, the issuance of shelter-in-place orders rather than a mandatory evacuation order, and the delay in cleanup operations, to determine if the enactment of further laws and regulations would prevent or mitigate these problems for potential future events in order to ensure the safety and well-being of residents, businesses, and impacted communities and infrastructure.
(2) It is also the intent of the Legislature to identify the gaps in insurance coverage exposed by this event, identify potential solutions to close those gaps, and determine if the enactment of further laws and regulations should be considered.
(c) (1) On or before December 31, 2027, the Office of Emergency Services, in consultation with the California Environmental Protection Agency, shall coordinate with state and local agencies and other entities, as necessary, that include, but are not limited to, the Department of Toxic Substances Control, Office of Environmental Health Hazard Assessment, State Air Resources Board, State Department of Public Health, air pollution control districts, local emergency management agencies, and local public health departments, to conduct a study to identify the various entities involved in the Lineage fire incident response and recovery operations, the coordination of entities involved in the incident response and recovery operations, and the various jurisdictional oversight authorities to determine if the enactment of further laws and regulations would prevent or mitigate these problems for potential future events in order to ensure the safety and well-being of residents and businesses.
(2) The state and local agencies and other entities identified in paragraph (1) shall provide the Office of Emergency Services and the California Environmental Protection Agency with any requested assistance, including, but not limited to, providing any data or other information.
(3) On or before July 31, 2028, the Office of Emergency Services shall submit a final written report detailing the findings and recommendations of the study developed pursuant to this subdivision to the Governor and Legislature, and post the report on the office’s public internet website, in compliance with Section 9795 of the Government Code.
(4) The study pursuant to this subdivision shall examine all of the following factors:
(A) The facts and circumstances of the Lineage fire in Boyle Heights, including the permitting process, installation, and use of solar panel arrays in the warehouse solar panel infrastructure.
(B) Identification of various agencies and entities with regulatory oversight and jurisdictional authority involved in the incident response and recovery operations.
(C) Identification of coordination activities of entities involved in the incident response and recovery.
(D) A review of the local coordinated emergency response at the city, county, and state level, the issuance of shelter-in-place orders rather than a mandatory evacuation order, and the factors involved in a delay in cleanup operations.
(E) Explore the best practices, including multilingual intake for community feedback and equity considerations for government decisionmaking with respect to health and safety and emergency management issues that resulted from this incident.
(F) Identification of the fiscal and operational impacts of the response and recovery operations to the Lineage fire on state and local government.
(G) Explore further laws and regulations that may prevent or mitigate impacts of potential future events in order to ensure the safety and well-being of residents and businesses.
(5) (A) The Office of Emergency Services and the California Environmental Protection Agency may enter into contracts necessary for the development of work required by this subdivision.
(B) Contracts entered into pursuant to this paragraph shall be exempt from Chapter 2 (commencing with Section 10290) of Part 2 of Division 2 of the Public Contract Code and shall not require the review, consent, or approval of the Department of General Services or any other state department or agency.
(d) (1) On or before July 1, 2027, the Department of Insurance, in coordination with any other state agency, and other stakeholders as necessary, shall conduct a study that identifies the gaps in insurance coverage exposed by the Lineage fire, identify potential new triggers for insurance coverage, and determine if the enactment of further laws and regulations should be considered to close the gaps.
(2) The study pursuant to this subdivision shall include all of the following to determine if the enactment of further laws and regulations or the amendment of Section 2060 of the Insurance Code should be considered:
(A) Identify the gaps in insurance coverage exposed by the Lineage fire, including, but not limited to, additional living expense coverage and business interruption coverage in the absence of a mandatory evacuation order triggering the coverage.
(B) Identify potential new triggers for additional living expense coverage in policies of residential property insurance and for business interruption coverage in commercial property insurance, such as, if certain air quality index thresholds are exceeded, if a public health advisory is issued, or if an insured voluntarily evacuates, particularly for vulnerable populations, including, but not limited to, children, the elderly, pregnant individuals, individuals with disabilities, and individuals with chronic medical conditions.
(C) Explore other considerations, such as environmental remediation and restoration of residential and commercial properties affected by industrial fires and their subsequent effects and health surveillance by local public health authorities.
(3) On or before December 1, 2027, the Department of Insurance shall submit a final written report detailing the findings and recommendations of the study developed pursuant to this subdivision to the Governor and Legislature, and post the report on the department’s public internet website, in compliance with Section 9795 of the Government Code.
SEC. 4.
Section 2060.1 is added to the Insurance Code, to read:2060.1.
(a) There is a rebuttable presumption that if wildfire smoke, ash, soot, char, or combustion byproducts are present in a surviving residential property in the wildfire impact zone after a wildfire, then smoke damage in the property is the result of that wildfire.(b) An insurer shall not terminate coverage for additional living expenses for a covered smoke damage claim for a property within the wildfire impact zone submitted under a policy of residential property insurance, as defined in Section 10087, as a result of a wildfire until the property has been restored to preloss condition and cleared for human occupancy, in accordance with the regulations or guidance described in Section 25402.3 of the Health and Safety Code or issued pursuant to Sections 25402.4 and 25402.5 of the Health and Safety Code, subject to the applicable policy limit.
(c) This section does not require continued additional living expense payments once the property has been restored to preloss condition and cleared for human occupancy, in accordance with the regulations or guidance described in Section 25402.3 of the Health and Safety Code or issued pursuant to Sections 25402.4 and 25402.5 of the Health and Safety Code.
(d) This section does not limit any other law or regulation, including the Unfair Trade Practices Act (Article 6.5 (commencing with Section 790) of Chapter 1 of Part 2 of Division 1), Sections 2070 and 2071, and the Fair Claims Settlement Practices Regulations (Article 1 (commencing with Section 2695.1) of Subchapter 7.5 of Chapter 5 of Title 10 of the California Code of Regulations). The requirements of this section are in addition to, and do not supersede, modify, limit, or otherwise affect existing law and any obligations of insurers.
(e) For purposes of this section:
(1) “Fire perimeter” means the footprint or entire outer boundary of a burned area as a result of a wildfire, as determined and mapped by the Department of Forestry and Fire Protection.
(2) “Residential property insurance” has the same meaning as in Section 10087.
(3) “Restored to preloss condition” means to remove smoke damage residues, ash, soot, char, combustion byproducts, chemicals, contaminants, and odor caused by wildfire smoke exposure through remediation and restoration of a residential property, including structural elements, building systems, contents, and indoor environment, but excluding exterior elements such as vegetation and soil, to the same condition that existed before exposure. Restoration does not include improvements, upgrades, or betterments beyond the condition of the property immediately before the wildfire smoke exposure.
(4) “Smoke damage” means exposure of residential property, including structural elements, building systems, contents, and indoor environment, but excluding exterior elements such as vegetation and soil, to wildfire smoke, ash, soot, char, combustion byproducts, and the chemicals and contaminants contained within the wildfire smoke. Wildfire smoke damage does not include smoke, soot, ash, char, fumes, or particulate matter resulting from agricultural, industrial, or commercial operations or routine residential activities unrelated to a covered wildfire.
(5) “Urban conflagration” means a massive, uncontrollable fire, regardless of cause, that spreads rapidly from building to building through densely populated, developed areas, typically overwhelming fire suppression resources. These fires are typically fueled by high winds, structural density, and flammable materials, often transitioning from wildland-urban interface fires into surrounding communities.
(6) “Wildfire” means a wildland-urban interface fire, an urban conflagration, or a forest fire, as defined in Section 4103 of the Public Resources Code.
(7) “Wildfire impact zone” means a ZIP Code within or partially within the fire perimeter, as described in paragraph (2) of subdivision (b) of Section 675.1.
(8) “Wildland-urban interface fire” means a fire, regardless of cause, in the zone of transition between unoccupied land and human development, including the area or zone where structures and other human development meet or intermingle with undeveloped wildland or vegetative fuels creating significant fire risk to developed areas and a significant number of structures.
SEC. 5.
Section 2060.2 is added to the Insurance Code, to read:2060.2.
(a) (1) This section applies to all covered smoke damage claims within the wildfire impact zone submitted under policies of residential property insurance as a result of a wildfire.(2) The regulations and guidance developed pursuant to Sections 25402.4 and 25402.5 of the Health and Safety Code apply to claims governed by this section.
(b) An insurer shall be responsible for covering the cost of the sampling and testing that is necessary to restore a damaged property to its preloss condition and render it cleared for human occupancy. That sampling and testing shall be in accordance with the regulations or guidance issued pursuant to Sections 25402.4 and 25402.5 of the Health and Safety Code, subject to the terms and provisions of the policy.
(c) This section does not preclude an insurer from conducting or covering the cost of sampling and testing that exceeds what is required pursuant to the regulations or guidance issued pursuant to Sections 25402.4 and 25402.5 of the Health and Safety Code.
(d) (1) If the insurer chooses to exercise its right to inspect the smoke-damaged property, the insurer shall inspect the property as soon as practicable, but no later than 30 calendar days after receiving notice of the claim. If the property is not accessible due to government restrictions, then the insurer shall inspect the property as soon as practicable, but no later than 30 calendar days after access to the property is granted.
(2) Unless the policyholder has agreed to permit the insurer, or the insurer’s contractor, to restore the damaged personal property to its preloss condition, the insurer shall pay the actual cash value of the undisputed cost to restore the damaged personal property to no less than its preloss condition as soon as practicable, but no later than 30 calendar days from the date the property was inspected. For the portion of a smoke damage claim pertaining to the replacement of covered personal property that is deemed a total loss, if any, the insurer shall pay the undisputed amount of the actual cash value of the personal property within 30 days from the date the personal property is determined to be a total loss.
(3) Unless the policyholder has agreed to permit the insurer, or the insurer’s contractor, to restore the damaged property to its preloss condition and render it cleared for human occupancy, under a policy of residential property insurance that requires payment of the replacement cost for a loss, after the actual cash value payment is made pursuant to paragraph (2), the insurer shall pay the undisputed amount of replacement cost to restore the damaged property to no less than its preloss condition and render it cleared for human occupancy, in accordance with the regulations or guidance issued pursuant to Sections 25402.4 and 25402.5 of the Health and Safety Code, up to the applicable policy limits, within 30 calendar days from the date upon which the restoration has been completed pursuant to Section 570. For the portion of a smoke damage claim pertaining to the replacement of covered personal property, if any, the insurer shall pay the undisputed amount of the replacement cost of the personal property within 30 days from the date the insurer was provided with a receipt for purchase of the replaced personal property.
(4) A payment not made pursuant to the timeframes required by this subdivision shall accrue interest payable to the insured pursuant to Section 2057.
(e) If a smoke damage insurance claim is settled on the basis of a written scope or estimate prepared by or for the insurer, the insurer shall supply the claimant with a copy of each document upon which the settlement is based. The estimate prepared by or for the insurer shall be for an amount that will restore the damaged property to no less than its preloss condition and render it cleared for human occupancy, in accordance with the regulations or guidance issued pursuant to Sections 25402.4 and 25402.5 of the Health and Safety Code, all other laws and regulations applicable to the specific work being performed, and accepted trade and industry standards as long as these standards do not conflict with the regulations or guidance issued pursuant to Sections 25402.4 and 25402.5 of the Health and Safety Code. A vendor or contractor hired or referred by the insurer to prepare the written scope or estimate or to perform smoke damage restoration work shall have the requisite license, training, and certification mandated by the state with respect to smoke damage caused by wildfire in residential properties. The policyholder shall have the right to select the vendor or contractor to perform the restoration of the property.
(f) If a residential property has been restored to preloss condition and cleared for human occupancy, in accordance with the regulations or guidance described in Section 25402.3 of the Health and Safety Code or issued pursuant to Sections 25402.4 and 25402.5 of the Health and Safety Code, the claim shall not be reopened due to recontamination. A claim for recontamination shall be considered a new claim, subject to policy provisions and a new deductible.
(g) The department shall implement and enforce a licensee’s responsibility to restore a residential property to preloss condition and render it cleared for human occupancy, in accordance with the regulations or guidance described in Section 25402.3 of the Health and Safety Code or issued pursuant to Sections 25402.4 and 25402.5 of the Health and Safety Code. A violation of this section shall be an unfair practice subject to Article 6.5 (commencing with Section 790) of Chapter 1 of Part 2 of Division 1.
(h) The department may adopt regulations pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code as necessary to implement or make specific this section.
(i) The definitions set forth in Section 2060.1 apply for purposes of this section.
(j) This section applies to all residential property insurance claims that occur on or after the operative date of this section.
(k) This section does not limit any other law or regulation, including the Unfair Trade Practices Act (Article 6.5 (commencing with Section 790) of Chapter 1 of Part 2 of Division 1), Sections 2070 and 2071, and the Fair Claims Settlement Practices Regulations (Article 1 (commencing with Section 2695.1) of Subchapter 7.5 of Chapter 5 of Title 10 of the California Code of Regulations). The requirements of this section are in addition to, and do not supersede, modify, limit, or otherwise affect existing law and any obligations of insurers.
SEC. 6.
Section 14048 is added to the Insurance Code, immediately following Section 14047, to read:14048.
(a) On or before July 1, 2029, the department shall develop a training and certification program for insurance adjusters in inspecting, evaluating, sampling, or testing smoke damage caused by a wildfire involving residential properties on behalf of insurers. The training and certification of insurance adjusters required by this section shall be based on the residential property being restored to preloss condition and cleared for human occupancy, in accordance with the regulations or guidance issued pursuant to Sections 25402.4 and 25402.5 of the Health and Safety Code. An insurer, adjuster firm, or qualified manager shall train and accredit its adjusters in accordance with those regulations and guidance. An insurance adjuster hired by an insurer to investigate or adjust wildfire smoke damage insurance claims shall have the requisite training and certification required by this section.(b) The department shall implement and enforce the training and certification program developed pursuant to subdivision (a). A violation of this section shall be an unfair practice subject to Article 6.5 (commencing with Section 790) of Chapter 1 of Part 2 of Division 1, in addition to any other disciplinary proceedings provided in this chapter.
(c) The department may adopt regulations pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code as necessary to implement or make specific this section.
(d) For purposes of this section:
(1) “Insurance adjuster” includes all of the following persons:
(A) Persons licensed pursuant to this chapter.
(B) Employees of persons licensed pursuant to this chapter who perform insurance adjusting activities, as described in Section 14021.
(C) Employees of an insurer who perform insurance adjusting activities, as described in Section 14021.
(2) “Person” means an individual, insurance company, association, organization, partnership, business trust, limited liability company, or corporation.
(e) The definitions set forth in Section 2060.1 apply for purposes of this section.
SEC. 7.
Section 15009.2 is added to the Insurance Code, to read:15009.2.
(a) On or before July 1, 2029, the department shall develop a training and certification program for public insurance adjusters, as defined in Section 15007, in inspecting, evaluating, sampling, or testing smoke damage caused by a wildfire involving residential properties on behalf of insureds. The training and certification of public insurance adjusters required by this section shall be based on the residential property being restored to preloss condition and cleared for human occupancy, in accordance with the regulations or guidance issued pursuant to Sections 25402.4 and 25402.5 of the Health and Safety Code. A public adjuster hired by an insured to adjust smoke damage claims shall have the requisite license, training, and certification, as required by this section.(b) The department shall implement and enforce the training and certification program developed pursuant to subdivision (a). A violation of this section shall be an unfair practice subject to Article 6.5 (commencing with Section 790) of Chapter 1 of Part 2 of Division 1, in addition to any other disciplinary proceedings provided in this chapter.
(c) The department may adopt regulations pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code as necessary to implement or make specific this section.
(d) The definitions set forth in Section 2060.1 apply for purposes of this section.
SEC. 8.
Section 6713 is added to the Labor Code, to read:6713.
(a) On or before July 1, 2029, the Division of Occupational Safety and Health, in consultation with any other state or local governmental agency as necessary, shall propose to the Occupational Safety and Health Standards Board for its consideration and possible adoption regulations to protect the health and safety of employees performing work on residential properties that have sustained smoke or fire damage as a result of a wildfire. The regulations shall include requirements for the certification of individuals who perform that work.(b) (1) The regulations adopted pursuant to subdivision (a) may establish fees that will be required for certification. Fees imposed pursuant to this section shall be established at levels not to exceed an amount sufficient to cover the costs of administering and enforcing the requirements and regulations adopted pursuant to this section.
(2) Fees collected pursuant to this section shall be deposited into the Wildfire Remediation and Restoration Certification and Training Fund, which is hereby created in the State Treasury. Funds shall be available, upon appropriation by the Legislature, for the purposes described in paragraph (1).
(c) For purposes of this section:
(1) “Smoke damage” means exposure of residential property or its contents including structural elements, building systems, contents, and indoor environment, but excluding exterior elements such as vegetation and soil, to wildfire smoke, ash, soot, char, combustion byproducts, and the chemicals and contaminants contained within the wildfire smoke. Wildfire smoke damage does not include smoke, soot, ash, char, fumes, or particulate matter resulting from agricultural, industrial, or commercial operations or routine residential activities unrelated to a covered wildfire.
(2) “Wildfire” means a wildland-urban interface fire, an urban conflagration, or a forest fire as defined in Section 4103 of the Public Resources Code.
SEC. 9.
If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.SEC. 10.
This act shall become operative only if Assembly Bill 1642 of the 2025–26 Regular Session is enacted and becomes effective on or before January 1, 2027.Text of AB 1795 as chaptered, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions