INSURANCE COMPANIES ARE REQUIRED TO GIVE FIRE VICTIMS THE CHOICE OF WHETHER TO REBUILD OR RELOCATE
We have been receiving inquiries from victims of the recent wildfires asking whether their insurance policies require them to rebuild or can they locate.
The decision of whether to rebuild is a difficult one. The loss of a home is heart-wrenching.
Coverage for rebuilding a home is one of several common insurance coverages. In addition, the coverage typically includes what I would put into five different buckets:
1. Other structures on the property, including garages, pools, sheds, fences
2.Code upgrades
3.Debris removal;
4. Home contents that were damaged or destroyed and
5. Additional living expenses that you incurredincluding temporary housing.
Fortunately, the law in California was changed in 2004 to protect fire victims so that you would have choices.
Under California Insurance Code 2051.5 c, after suffering a total loss, policyholders can use their insurance coverage toward rebuilding or buying a residence elsewhere.
The homeowner therefore has a choice to make and it is heart-wrenching. There are many factors that must be considered if you decide to rebuild including the time to rebuild, the uncertainties of the toxic items in the soils and how long that will take to remediate, whether the area can ever be built back to the way it was that caused you to want to live there, and whether you and your family would feel safe to live there.
Those are tough decisions that families will need to tackle.
On the one hand, if you do relocate you will be purchasing a replacement home having the benefit of your insurance process but will need to pay any mortgage with the relocation funds.
On the other hand, if you do decide to rebuild, normally insurance policies provide replacement cost coverage.
You should have a detailed discussion with your insurance agent and insurance carrier to discuss how rebuilding will be funded. Send a confirming email regarding those discussions.
You should also determine from your contractor how long it will take to rebuild.
You should then factor those time limits to make sure you properly budget your Alternative Living Expense coverage so that it is sufficient to support you during that time period while you are out of the house.
We at Mcgonigle Law pride ourselves in working with our clients to obtain full compensation for them. We have over 40 years of experience helping victims recover the compensation they deserve, so you can focus on rebuilding your lives.
Here at McGonigle Law, we know these are difficult times, and you may have many additional questions about insurance or third-party claims against wrongdoers who were responsive to the fires.
If you need help call us at 800-713-5260 for a free confidential consultation. We are here to help.
