Who gets to rebuild? Los Angeles fires expose the weakness of U.S. home insurance.
As wildfires rage through Los Angeles, thousands of homeowners face uncertainty—not just from the flames but from a broken insurance system.
Many victims of recent fires are discovering that their home insurance policies fall short, leaving them with unexpected costs, delays, or even outright denials of coverage.
In recent years, rising wildfire risks have led major insurers to pull out of California or significantly increase premiums.
Some homeowners have been dropped entirely, forced to rely on the state’s high-cost, last-resort FAIR Plan, which provides minimal coverage.
Others find their policies don't fully account for the skyrocketing cost of rebuilding in a disaster-prone region.
This crisis raises a fundamental question: Who actually gets to rebuild after a wildfire? Wealthier homeowners with access to private coverage may recover more quickly, while middle- and lower-income families struggle with financial ruin.
As climate change fuels more frequent and intense fires, experts warn that the current insurance system is unsustainable. Without reforms, thousands of Americans may find themselves permanently displaced after the next disaster.