California's AB 1795 sets smoke-damage restoration standards after wildfires and keeps owners' choice of contractor
California Governor Newsom signed AB 1795, the Smoke Damage Recovery Act, which sets standards for testing and restoring smoke-damaged homes and requires insurers to follow them. Part of the law takes effect January 1, 2027.
The California Department of Insurance announced on September 15, 2026 that Governor Gavin Newsom signed Assembly Bill 1795, the Smoke Damage Recovery Act, authored by Assemblymember Mike Gipson.
According to the department, the law presumes that smoke damage inside a wildfire impact zone resulted from the wildfire. Insurers must pay for necessary testing and sampling, and cannot end Additional Living Expense benefits until qualifying homes are restored and safe to occupy. Inspections and claim handling must follow set timelines, and repair estimates must restore homes to their pre-loss condition and meet health and safety standards.
For the trades, the department says policyholders keep the right to choose their own restoration contractors, adjusters handling smoke claims must complete training, and workers doing restoration and remediation are protected. The law sets science-based standards for investigating, testing and restoring smoke-damaged homes, and the Department of Insurance and CalOES must study contamination-related insurance gaps, using the Boyle Heights warehouse fire, and recommend stronger protections.
A department summary of the 2026 insurance package gives January 1, 2027 as the effective date for the law, with other provisions on January 1, 2028 and July 1, 2029. The first release does not state a date.
This description comes from the Department of Insurance, not the bill text. Contractors and homeowners should read the chaptered bill for the exact standards and dates.