Gov. Newsom signs wildfire recovery package to improve testing standards, strengthen insurance coverage
California Gov. Gavin Newsom has signed a wildfire recovery package of legislation that is aimed at strengthening insurance coverage for homeowners and improving testing and remediation standards.
Newsom signed the package on Tuesday while meeting with Eaton Fire survivors and community leaders in Altadena.
The deadly Eaton and Palisades fires erupted in Southern California in January 2024 and destroyed thousands of homes and properties, leaving some residents with nowhere to go and others with severe damage. Newsom's office said the four bills continue the state's work to help fire survivors recover.
"California will not leave survivors to navigate recovery alone," Newsom said. "As fire seasons across the West become a year-round reality, California's commitment to recovery must be just as enduring."
According to Newsom's office, the new laws create the "first-in-the-nation standards for testing and remediation of hazardous wildfire smoke contamination for future fires and it also requires insurers to cover qualifying smoke-damage testing, remediation and restoration.
Assembly Bills 1642 and 1795 will direct the Department of Toxic Substances Control and the California Air Resources Board to develop the state's new testing for lead and asbestos for homes within fire's zip codes.
They will also require DTSC to provide recovery guidance to schools near an impacted zone.
The signed bills will require insurers to pay for the testing and remediation of the smoke-damaged homes, cover full cleanup and restoration to pre-loss condition and it prohibits insurers from canceling Additional Living Expense coverage until a home is remediated and safe to occupy.
"AB 1795 gives survivors greater certainty, strengthens consumer protections, and makes clear what Californians can expect from their insurers when disaster strikes," said Assemblymember Mike A. Gipson, who helped author the bill.
Assembly Bills 1842 and 1847, establish an emergency mortgage relief structure. The bills will pause mortgage payments for residents who are unable to live in their damaged or destroyed homes.
The newly signed bills will also prohibit mortgage servicers from charging residents late fees or default interest rates during forbearance periods.
The legislation will expand the mortgage forbearance window available by law for Los Angeles wildfire survivors from 12 months to 24. Impacted homeowners will also have until Jan. 7, 2029, to request disaster-related mortgage relief.
"AB 1842 creates a national model for granting mortgage forbearance to future wildfire survivors, so no family has to immediately pay a mortgage for a home that no longer exists," said Assemblymember John Harabedian, who authored the bills.
Newsom said that aside from the help the wildfire recovery package will offer, his administration continues to provide relief through the CalAssist Mortgage Fund. The fund provides wildfire survivors with up to 12 months and $100,000 in mortgage relief that does not need to be repaid.
