The California Department of Insurance published a press release announcing the signing of AB 1795, the Smoke Damage Recovery Act.
The act establishes standards for investigating, testing, and restoring smoke-damaged homes after a fire, the first of its kind in the country. Often after a fire, families have had disputes with their insurers on whether their homes were safe. The act protects consumers by creating standards that insurers must adhere to.
The act requires insurers to pay for necessary testing and sampling after a loss, and prevents insurers from ending ALE benefits until a home is restored and safe to occupy. The act also establishes timelines for inspections and claim handling to ensure prompt claims handling.
Restore estimates should factor in restoring homes to their pre-loss condition while meeting health and safety standards. A policyholder has the right to choose a restoration contractor. Training requirements are established for adjusters that handle smoke damage claims. Finally, there is also protection for workers that perform restoration and remediation activities.
The press release can be found here.
Ray Sugrim
Ray Sugrim is an Insurance Editor with FC&S Expert Coverage Interpretation, a division of National Underwriter Company and Arc Network. Ray is responsible for helping develop and edit content for subscribers. Ray is a St John’s University graduate with a degree in Risk Management & Insurance and is a CPCU candidate.