Insurance
Sep. 16, 2026
New wildfire smoke standards could reshape insurance litigation
New California laws establish standards for testing and remediating smoke-damaged homes and impose new requirements on insurers, changes attorneys say could increase carriers' exposure in coverage and bad-faith disputes.
Gov. Gavin Newsom signed a package of wildfire-recovery bills Tuesday that could reshape insurance litigation over smoke-damaged homes by establishing standards for determining when properties are contaminated and when they are safe to occupy.
The laws require insurers to cover qualifying testing, remediation and restoration for lead and asbestos contamination from wildfire smoke and prohibit them from ending additional living-expense coverage while a home remains unsafe.
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