Tens of thousands of California residents will decide whether to permanently relocate or rebuild their homes after the most destructive fires in Los Angeles’ history.
Insurance companies may cover thousands of dollars in temporary housing and living expenses — unless homeowners are underinsured or not covered.
“The policy is generally going to cover the cost of additional living expenses while you are out of your home, to maintain what is kind of your usual standard of living,” said Karen Collins, the vice president of American Property Casualty Insurance Association’s property and environmental division.
For example, if someone’s insurance covers $100,000 for a property, the insurance company might cover another $20,000 — or 20% — in additional living expenses, Collins said.
Peter Vanek, president of PVRK, a Southern California-based real estate consulting company, said his home was destroyed by a battery fire in 2023. His insurance initially estimated $350,000 for the house. After Vanek provided evidence of what was lost, his insurance paid twice as much, including living expenses while he relocated, and the house was rebuilt.
Leave or build again? Insurance coverage plays an outsized role in the decision to move or invest resources into reconstruction. For some with insurance, it could boil down to having pictures of the property before the damages and updating insurers with home estimates.
“(Homeowners) might not have disposable income to cover the difference between whatever their insurance is going to cover and what their cost is to rebuild their home, replace all of their items,” Vanek said.
The current wildfires in Los Angeles County are the costliest and most destructive in its history. The insured losses could exceed $20 billion, according to a report by JPMorgan Chase.
More than 150,000 people in Los Angeles County were under evacuation orders Saturday night, Michael Traum, an official with the California Office of Emergency Services, said in a briefing posted online.
More than 700 people were staying in nine available shelters, Traum said.
An expanded evacuation order was issued for the Palisades Fire on Friday, and the University of California, Los Angeles, has told students to be prepared for a potential evacuation, as evacuation warnings get closer to the campus.
Nearly 180,000 residents in the county were under evacuation orders Thursday, according to Sheriff Robert Luna, with close to 200,000 residents under evacuation warnings.
An evacuation order is mandatory, while a warning prepares residents that they may soon need to leave.
As firefighters continue to battle raging fires across Los Angeles County, a cut to the Los Angeles Fire Department 2025 budget and its commitment to recruiting a more diverse force have come under attack.
Four major fires across the LA area have killed 16 people, scorched over 38,000 acres and damaged at least 10,000 structures. More than 150,000 people are under evacuation orders, according to the California Office of Emergency Services.
As crews work to contain multiple infernos, LAFD Chief Kristin Crowley is facing criticism for prioritizing diversity, equity and inclusion within the department. Meanwhile, Crowley has expressed concerns about a $17.4 million cut to the department’s 2025 budget, which included reductions in overtime staffing.
The finger-pointing has politicized what’s being described as the most destructive fire in LA history.
Los Angeles Fire Commission President Genethia Hudley-Hayes says it’s “out of line” to blame any local official for the magnitude of the fires, saying the focus should be on helping the residents who have lost everything.
The commission is composed of a five-person civilian board appointed by the mayor, and affirmed by the city council that oversees the fire department.
“This is not the time to demonize people,” Hudley-Hayes said.
The fire department budget has grown steadily year-over-year from $674.27 million in 2019 to $819.64 million in 2025, but it is down from $837.19 million in 2024. However, Hudley-Hayes stated that it has been underfunded for at least a decade.