Rebuilding After a House Fire - What I've Learned about Insurance Claims and Recovery in Los Angeles

The journey to rebuild isn’t just about bricks and mortar; it’s about understanding the system so you can advocate for yourself and your loved ones. Here’s what you should know:

1?? Insurance Policies Have “Buckets” of Money — Know What They Are

Most home insurance policies split your coverage into three key areas:

?? Dwelling — This covers the cost to rebuild your home.

??? Contents — This covers the cost to replace damaged items inside your home.

?? Living Expenses — This covers the cost of living elsewhere while your home is being repaired.

In the event of a total loss, your insurance company is responsible for paying out these buckets minus your deductible. Make sure you understand how much is available to you in each category.

2?? Replacement Costs and Depreciation — Fight for the Full Value

Insurance companies often issue payments based on the depreciated value of your belongings — meaning they pay less than what it costs to buy a new item today. But you can claim the difference if you submit receipts for replacement costs.

?? Example: They may value your refrigerator at 40% of its current market price. Once you replace it, submit the receipt to claim the remaining 60%.

?? Tip: Keep a spreadsheet of lost items, their approximate age, and replacement receipts to track what you’re owed.

3?? High-Value Items May Need Separate Coverage

Jewelry, art, antiques, and electronics are often not fully covered under standard home insurance policies. These items may require a “Personal Articles Policy” — an additional coverage plan that ensures they’re insured for their full value. If you’re not sure what’s covered, now is a good time to check your policy.

4?? Beware of Adjusters Who Take a Percentage of Your Settlement

After a loss, you may get calls from public adjusters or fire specialists who say they can manage the claims process for you. While they may sound helpful, they often take a 10% cut of your settlement.

?? Remember: Every dollar they take is money that could go toward rebuilding your home.

5?? California Homeowners — You Have 2 Years to Complete Your Claim

If your home is part of an officially declared disaster (like wildfires), California law allows you two years to complete your insurance claim and inventory process. Many other states only allow one year, so it’s important to know your rights.

?? Keep reminding your insurance adjuster of this timeline to ensure you have enough time to document and claim your losses.

6?? Organization Is Key

The biggest lesson I’ve learned? Stay organized. The insurance process is exhausting, but having a system can make it manageable:

? Create a dedicated email address for all fire-related correspondence to keep your communication with vendors and insurance companies in one place.

? Track your receipts and payouts in a centralized spreadsheet to avoid submitting the same documents multiple times.

? Keep all documentation — you’ll need to resubmit receipts and photos throughout the process.

7?? Don’t Overlook Building Code Changes

If your home was built years ago, rebuilding it today will likely mean adhering to updated building codes. Look for an endorsement in your policy called Building Ordinance Coverage — it’s designed to cover the extra costs of bringing your home up to code.

8?? The Emotional Toll of Rebuilding

There’s a tragedy in the loss of your home and belongings. But the second tragedy is the time and emotional energy it takes to navigate the complexities of our home insurance system. The process is slow, frustrating, and at times, disheartening.

But there’s hope.

Many homeowners say that by the end of this process, they had a home that was stronger, safer, and better than ever before — along with the peace of mind that lightning doesn’t strike twice. ??

I wanted to share this because, for anyone in Los Angeles or California, wildfires are a real and growing threat. If you or someone you know is navigating this process, I hope these insights can offer clarity, support, and encouragement to keep fighting for what you’re owed.

Let’s support each other through the rebuilding process — and remember, you’re stronger than you think. ??