Harsh Choices for Californians Who Lost Their Homes to Fire

For this January, empty foundations pockmark Los Angeles neighborhoods where families now stand, faced with decisions nobody wishes to make. Stay and rebuild? Move somewhere safer? Neither choice comes cheap or easy.

The Money Question

Insurance might cover temporary housing while they decide. Most policies have extra living expenses-usually about 20% above the home's coverage - but again, that safety net only works if the homeowners have carried enough insurance in the first place.

Consider rebuilding costs. One Southern California homeowner learned that the hard way. His insurance estimated $350,000 for fire damage. After he documented everything that was lost, that number doubled. Without detailed records, he could have faced massive out-of-pocket costs.

The Importance of Documenting Everything