Full Breakdown
California Moves to Set First-Nation Standards for Wildfire Smoke Damage
9/9/2026, 3:58:27 AM
Core Legislation and Immediate Effects
California lawmakers have approved two companion bills that would create statewide standards for testing and remediation of wildfire smoke damage. Assembly Bill 1642 directs the Department of Toxic Substances Control to adopt lead- and asbestos-testing standards by the end of 2028 and to add standards for heavy metals, cyanide and lithium by the end of 2029. Assembly Bill 1795 makes those standards legally binding for insurers, requires property inspections within 30 days of a claim, obligates insurers to pay for required testing, and bars the suspension of additional-living-expense payments until homes are restored. The bills cannot take effect unless both are signed; Governor Gavin Newsom has until the end of September to act.
Complementary Senate measures (SB 876, SB 877, SB 878) tighten insurer-customer communication, mandate disclosure of disaster-response plans by April 1, 2028, and set timelines for loss calculations and cash-value payments on total-loss claims.
Background & Context
The January 2025 Los Angeles-area wildfires destroyed more than 16,000 structures. The California Insurance Department estimates that over 13,000 of the roughly 40,000 property claims involved smoke damage. Many homes that survived the flames remained uninhabitable for months because residents faced lingering ash, soot, char and potential contaminants such as lead and asbestos. Survivors in Altadena and other affected communities were still living in donated RVs or temporary rentals while awaiting test results and insurer approvals.
Data & Statistics
- Smoke-damage claims: > 13,000 (California Insurance Department).
- Total property claims from the 2025 fires: ? 40,000.
- State Farm holds about 20 % of California’s property-insurance market and is a defendant in a Los Angeles County lawsuit alleging delayed or denied smoke-damage claims.
- Individual out-of-pocket testing costs reported: $3,000 (Kareem Ali) and $6,000 (Elisa Jacobs Nixon).
Official Statements & Responses
State Farm spokesperson Sevag Sarkissian said the company “strongly disagrees” with the lawsuit’s characterization of its claims handling. Karen Collins, vice president of the American Property Casualty Insurance Association, acknowledged the bills create a framework but cautioned that any resulting regulations must remain “grounded in science.”
Criticism & Opposition
The insurance industry argues the proposed standards could be overly prescriptive. Adjuster Brian Haden warned that the bills “lack specifics” and predicted continued litigation, questioning whether the Insurance Department will enforce the new rules. Survivor-advocate Jane Lawton Potelle noted that the standards will not help current claimants retroactively but could influence ongoing lawsuits and settlements.
Conflicting Reports & Gaps
The bills set ambitious timelines for standard development, but the Insurance Department’s capacity to enforce the 30-day inspection rule and to monitor compliance remains uncertain. No independent assessment has yet quantified how many existing claims will qualify for the new presumption, leaving a gap in projected insurer liability.
What’s Next
Governor Newsom must decide by the end of September whether to sign the bills. If signed, the Department of Toxic Substances Control must finalize lead and asbestos standards by the end of 2028 and broader contaminant standards by the end of 2029. Insurers will also need to submit detailed disaster-response plans by April 1, 2028, with updates required every two years or upon the commissioner’s request.
