What California Homeowners and Renters Need to Know About Insurance, Rebuilding, and Financial Recovery
Wildfires have once again devastated California communities, leaving thousands of homes damaged or destroyed. For homeowners and renters trying to navigate the chaos that follows, understanding your rights, responsibilities, and the financial steps to recovery is essential. In this article, we’ll walk through critical insurance guidance, financial considerations, and rebuilding advice shared during a recent expert discussion.
Start With the Right Steps—And Avoid Costly Mistakes
After a wildfire, your first instinct may be to seek help from public adjusters promising to get you more from your claim. But proceed with caution. According to the Insurance Information Institute, California law prohibits public third-party adjusters from soliciting business immediately after a disaster. Once you engage one, you can’t go back to working directly with your insurance company. That decision is final.
Instead, use your insurer’s mobile app, request a copy of your policy, and begin documenting all damaged property with photos or videos. Meet with your adjuster to catalog every item—this evidence is critical for maximizing your claim.
What Homeowners and Renters Must Do Right Away
Ken Kaplan emphasized that time matters. Homeowners should contact their insurance provider immediately and keep a log of every conversation—names, dates, and times included. Renters should do the same with their renters insurance and notify their landlords, who may carry insurance that also applies.
Expect delays. With over 5,000 homes affected in the latest fires, claim processing is backlogged. Persistence and documentation will be your best allies.
Rebuilding Isn’t Just Construction—It’s Financial Navigation
Many California homeowners bought decades ago and now face a shock: if you rebuild, your new tax basis may be reassessed at today’s market value—meaning dramatically higher property taxes. Kaplan recommends consulting your insurer, the county assessor, and city officials to explore whether tax relief programs may be available.
Mortgage help is also case-by-case. Some lenders may offer a forbearance or payment pause, but there’s no statewide rule—yet. Federal or state intervention could ease the burden, but affected homeowners should reach out to their lenders directly now.
The Government Can—and Should—Step In
Kaplan urged local, state, and federal leaders to provide tax and mortgage relief. He noted that displaced homeowners, including those in transitional housing or those who’ve paid off their mortgage but can’t afford new taxes, need answers fast. Disaster response shouldn’t end with putting out the flames—it must include financial recovery, too.
Proactive Steps: Don’t Wait for the Next Fire
Disasters can strike anyone. One of the smartest things you can do is document your home before anything happens. Kaplan recommends walking through your house once a year with your phone, recording each room, cabinet, closet, and drawer. Then upload the footage to the cloud. It’s a simple, powerful record that can make or break your insurance claim.
A Personal Reminder of What’s at Stake
Kaplan closed by sharing his own heartbreak—watching neighborhoods where he grew up, like Palisades, reduced to ash. The emotional weight is heavy, but the practical takeaway is clear: preparation, smart choices, and timely action can make the difference between financial survival and ruin.
