California passes bills to boost smoke-damage insurance and fund fire-proof home upgrades

In response to the devastation of the 2025 Eaton and Palisades wildfires, California legislators passed AB 1642 and AB 1795, which together establish scientific standards for smoke-contaminated homes and bind insurers to meet those standards promptly. Advocates praised the compromise that tightened insurer obligations after earlier drafts allowed claim denials. Senator Benjamin Allen introduced SB 1301 to require insurers to provide specific non-renewal reasons and a separate bill to fund a loan program for fire-hardening, aiming to support up to 2,400 projects within five years.

A budget measure also earmarked $25 million for grants, rebates or loans capped at $25,000 per property. Governor Gavin Newsom must sign the bills for them to take effect. Additional legislation seeks restitution for victims of utility-caused fires, highlighting ongoing efforts to address long-standing compensation gaps.