Plain English Breakdown
The official text states this is an urgency statute taking effect immediately, but specific implementation dates for regulations depend on CalEPA meeting its deadlines.
Smoke Damage Recovery Act
This law requires CalEPA to create health-based testing standards for wildfire smoke damage and sets new rules for insurance companies regarding claim inspections, payments, and living expense coverage.
What This Bill Does
- Requires the California Environmental Protection Agency (CalEPA) to develop health-based standards for sampling, testing, and chemical screening of residential properties with wildfire smoke damage by June 30, 2027.
- Authorizes CalEPA to impose additional sampling or testing requirements for specific wildfires.
- Requires CalEPA to establish training and certification rules by January 1, 2028, for workers who inspect, test, analyze, remediate, or restore homes damaged by wildfire smoke.
- Prohibits insurers from ending additional living expense coverage until a property is cleared as safe to live in after a wildfire claim.
- Makes insurance companies responsible for paying the costs of sampling and testing required under CalEPA standards within an impact zone.
- Requires insurers who choose to inspect a smoke-damaged property to do so no later than 30 calendar days after receiving notice or gaining access.
- Requires insurers to pay actual cash value within 30 calendar days after inspection, unless the homeowner agrees to let the insurer handle repairs.
- Requires insurers to pay undisputed replacement costs within 15 calendar days of receiving a contractor's contract from the insured.
Who It Names or Affects
- Homeowners with residential property insurance claims for wildfire smoke damage.
- Insurance companies handling fire and residential property policies.
- Workers who inspect, test, analyze, remediate, or restore homes damaged by wildfires.
- The California Environmental Protection Agency (CalEPA) and the Department of Insurance.
Terms To Know
- Additional living expenses
- Money paid to cover costs like hotels or food when a home is uninhabitable due to damage.
- Actual cash value
- The cost to repair property minus the amount of wear and tear before the loss occurred.
- Replacement cost
- The full cost to restore or replace damaged property without deducting for wear and tear.
Limits and Unknowns
- CalEPA must still write the specific regulations, which will determine exact testing levels and certification rules.
- Fees collected from certifications go into a state fund but require approval by the Legislature before they can be spent.
- The law does not specify exactly how CalEPA will define an 'impact zone' for applying these standards.