California Insurance Commissioner Ricardo Lara has appointed a team of specialists to craft recommendations for smoke remediation standards after wildfires.
The new Smoke Claims & Remediation Task Force comprises 13 experts in public health, fire safety, smoke remediation, consumer advocacy, insurance and industrial hygiene, the department announced Tuesday.
The group will meet monthly with plans to deliver “science-based insurance standards and best practices for safely returning to and restoring homes and personal property” by early 2026.
“As smoke damage becomes an increasingly critical problem, it requires collaboration among government, businesses and consumers to find solutions," Lara said. "California must take the lead in creating effective strategies to assist consumers in managing the aftermath of wildfire disasters.”
Concerns about insurance have worsened since firestorms swept across the Los Angeles region in January. The two largest of those disasters, the Palisades and Eaton fires, destroyed nearly $30 billion worth of houses. Some residences weren’t destroyed but sustained serious smoke damage.
“For more than 30 years, California has lacked consistent statewide standards for investigating and paying smoke damage claims,” Lara said in a May 19 statement announcing that the panel would be created. “The result is confusion, delays, and families forced to return to unsafe homes. Consumers are angry and rightly so. Californians deserve better — and this Task Force will help us create lasting solutions.”
The state is investigating insurers
In the months since then, a heated battle has unfolded as policyholders seeking coverage for smoke damage have alleged misconduct by insurers.
The department said it’s “currently investigating hundreds of smoke damage-related complaints from wildfire survivors.”
Last month, the department initiated a formal investigation into State Farm, the state’s largest insurer.
In a press release, State Farm had said it "will comply with the market conduct exam process."
"A fair review will find that thousands of State Farm customers are being helped by our teams on the ground in Los Angeles County and are very satisfied," the release said. "Our efforts will remain on serving all our customers and meeting our obligations under the contract, while providing the necessary information to the CDI. The department routinely examines all insurance companies. These exams help ensure processes and procedures are in full compliance with state regulations."
Last week, a Los Angeles judge ruled that California's insurer of last resort, known as the FAIR Plan, had violated the state insurance code for smoke damage coverage.