Bel Air and Holmby Hills homeowners near the January 2025 Palisades Fire burn zone would gain new protections under two California bills that would create the nation's first standards for testing and cleaning up smoke damage in standing homes.
AB 1642 and AB 1795 passed the California Legislature and await Gov. Gavin Newsom's signature by the end of September. The measures are paired. Neither can become law without the other.
Together they would force insurers to pay for contamination testing and bar them from cutting off living expenses until a home is restored. Statewide, the California Department of Insurance estimates more than 13,000 of roughly 40,000 claims from the January 2025 fires involved smoke damage, according to a CalMatters report published by Patch. No public data has confirmed specific smoke-damage claims in Bel Air or Holmby Hills, but the neighborhoods border the Palisades burn area.
Survivors whose homes did not burn have still not returned 21 months later, CalMatters reported.
What the bills would do
AB 1642, authored by Assemblymember John Harabedian, D-Pasadena, would direct the California Department of Toxic Substances Control (DTSC) to create scientific standards for what makes a home safe to occupy. DTSC would have until the end of 2028 to set standards for lead and asbestos testing, repair and removal. Standards for other contaminants, including heavy metals, cyanide and lithium, would follow by the end of 2029.
AB 1795, authored by Assemblymember Mike Gipson, D-Gardena, would require insurers to follow those standards. It creates a legal presumption that ash, soot, char or other combustion byproducts found in a standing home after a wildfire resulted from that fire for insurance purposes. Insurers would have to inspect properties within 30 days of a claim, cover the cost of testing and continue paying additional living expenses until a home is restored to pre-fire condition.
"We were hearing from survivors that they weren't getting a fair shake from their insurance companies," Harabedian told CalMatters.
Insurance industry pushback
The American Property Casualty Insurance Association (APCIA) remains technically opposed to both bills, according to Karen Collins, an APCIA vice president and member of a smoke-claims task force the insurance department formed after the January 2025 fires.
Smoke damage is also central to a lawsuit Los Angeles County filed against State Farm on Aug. 31 in LA County Superior Court. The county alleged the insurer denied or discouraged requests for environmental testing and refused to reimburse policyholders who paid out of pocket, according to the county's announcement. The suit seeks restitution and civil penalties of up to $2,500 per violation.
State Farm spokesman Bob Devereux said the company "strongly disagrees" with the county's characterization of its claims response, the Los Angeles Times reported.
What comes next
Jane Lawton Potelle, founder and executive director of Eaton Fire Residents United, whose data helped shape AB 1642, acknowledged the standards will not take effect in time to help current survivors directly. She said the fact that standards are coming could still affect lawsuits and possible settlements.
Insurance adjuster Brian Haden was more skeptical, questioning whether the insurance department will enforce the new rules and predicting litigation will remain the primary way disputes get resolved.
Newsom has until the end of September to sign or veto both bills. Residents can contact the governor's office or their state legislators to weigh in before the deadline.
