Homeowners who have lost their homes to the fires may find that ADUs offer a unique solution for rebuilding and creating a new sense of normalcy.
We'll guide you through each phase, incorporating specific details about the recent fires in Los Angeles, particularly in Pacific Palisades and Altadena, as well as available resources and legislative support for rebuilding these communities.
Regardless of whether you fully understand all the provisions of your homeowners policy or not, you will most likely have some provision for what Insurance Companies define as Additional Living Expenses or ALE. Contacting your Claims Adjuster and understanding what's available to you and your family under the provisions of your policy is critical to getting a roof over the head of you and your loved ones. Each policy is unique and will have specifics related to how much is available now, and how much can be allocated to a temporary living situation on per day basis. This includes shelter, food and many other expenses required to live on a daily basis. Your long term daily allotment must be negotiated with your claims adjuster and will vary based on the terms of your policy and your documented daily living requirements.
As you may have realized already, claims adjusters can be a bit overwhelmed themselves by the number of insured they must provide assistance to. Most Insurance Companies will have some type of temporary claims center setup in your area, which can prove to be a much faster method of connecting with a representative that can provide answers to questions that guide your next steps. Visit your Insurance Company’s website for information about where these claims centers are and hours of operation.
If your home was uninsured or your insurance policy does not provide for Additional Living Expenses or ALE, there are essentially 3 resources to consider.
Temporary housing comes in many forms, so choose what best fits your family’s needs:
For homeowners displaced by wildfires, choosing a modular building as a temporary living solution offers unique advantages over staying in an Airbnb or renting a home in a different location.
A modular building not only provides immediate shelter but can later serve as a permanent Accessory Dwelling Unit (ADU), creating long-term value.
With special allowances in response to the fires, local authorities have implemented measures to expedite the process for acquiring temporary living solutions. This opens the door to instantly add a modular building to your property, without permit delays.
| Modular Building on Property | Airbnb/Rental Home | |
|---|---|---|
| Proximity to Rebuild | On-site, allowing direct oversight of contractors and progress | Off-site, requiring travel to monitor rebuild efforts |
| Long-Term Value | Converts to a permanent ADU for rental income or personal use | No residual value; purely an expense |
| Convenience | Immediate access to property and belongings | Requires coordination for visits to damaged property |
| Fire Resistance | Built with fire-resistant materials, enhancing safety | No control over construction materials or fire safety |
| Displacement Duration | Permanent solution; no need to relocate again | Temporary; must move once primary home is ready |
The decision to rebuild your home or relocate is deeply personal and influenced by financial, emotional, and logistical factors. Rebuilding preserves your roots and offers a chance to modernize your home, while relocating reduces future risk and provides a fresh start. Take time to evaluate your financial situation, emotional priorities, and long-term safety to make the choice that best suits your needs. If you need help navigating the options, many organizations and professionals are available to guide you through this process.
Rebuilding allows you to restore a sense of normalcy and retain your connection to the place you’ve called home.
It helps maintain ties to your community and neighbors.
Many rebuilding efforts include neighborhood-wide recovery programs, fostering solidarity and shared resources.
Local government programs like California’s Rebuild Initiative can expedite permitting and provide financial support.
Rebuilding gives you the opportunity to upgrade your home with modern designs, energy-efficient systems (Title 24 compliance), and fire-resistant materials.
Staying in the same area ensures proximity to schools, workplaces, and social networks.
Rebuilt homes often appreciate in value due to upgraded designs and compliance with new building codes.
The rebuilding process can take 24-36 months or longer due to permitting, labor shortages, and material demand. the place you’ve called home.
Even with insurance, out-of-pocket expenses may arise, especially for code upgrades or fire-resistant features.
Uninsured homeowners face significant financial challenges.
Managing permits, contractors, and construction can be stressful, especially while recovering from the trauma of the disaster.
Staying in the same area ensures proximity to schools, workplaces, and social networks.
Relocating to a region with a lower risk of wildfires provides peace of mind and long-term safety.
Selling the land or using insurance payouts to buy an existing home may be more cost-effective than rebuilding.
Relocation offers an opportunity to start anew in a different community or environment.
It may lead to new career, education, or lifestyle opportunities.
Moving to a ready-built home eliminates the lengthy timeline of rebuilding.
Leaving a long-time home and community can be emotionally difficult.
Relocation may disrupt children’s schooling, social ties, and routines.
Buying a home in a new location could be more expensive, especially in high-demand areas.
Some insurance policies may not fully cover the cost of relocating.
Selling the existing property, finding a new home, and relocating belongings can be time-consuming and stressful.
Moving requires adjusting to a new community, amenities, and possibly a different climate or culture.
It’s crucial to continue making mortgage and insurance premium payments, even if the home is uninhabitable. Doing so ensures your financial stability, keeps your credit intact, and maintains your eligibility for rebuilding assistance or insurance claims. Here’s why this matters and what to do if you’re struggling to make payments.
Documenting your losses accurately and thoroughly is essential for filing insurance claims and applying for assistance from public agencies. This process can help ensure you receive fair compensation and adequate support. Below are critical steps and tips to guide you through this process:
List damaged or lost items with details (description, purchase date, value).
Use tools like inventory apps or templates for organization.
Take photos and videos of damage, both structural and personal property.
Organize images by room or category.
Collect receipts, bank statements, or credit card records for major purchases.
Contact retailers or banks for replacements if documents are lost.
List affected parts of the home (roof, walls, etc.) with measurements if possible.
Obtain professional assessments for detailed repair estimates.
Log all temporary housing, meals, travel, and storage costs.
Save receipts and maintain a detailed expense record.
Use pre-fire photos, videos, and inventory lists to verify ownership and value.
Hire public adjusters, contractors, or appraisers for claims support and accurate estimates.
Register your loss with FEMA (DisasterAssistance.gov) and local recovery agencies.
Submit required documentation early for timely assistance.
Keep both physical and digital copies of all records.
Use cloud storage for secure backups.
Regularly follow up with insurers and agencies.
Respond promptly to requests and appeal any denied claims with supplemental documentation.
