Your LA Fire Rebuild Insurance Claim Is Delayed — Here’s What To Do Right Now

Why Insurance Claims Were So Delayed After the LA Fires

The scale of the Eaton and Palisades fires was unlike anything California insurers had faced before. More than 16,000 structures were destroyed in Los Angeles — among the most expensive wildfire events in global history with an estimated $40 billion in insured losses according to Swiss Re Institute. The volume of simultaneous claims placed extraordinary pressure on insurance company staff, adjusters, and systems across the region.

Several factors compounded delays for individual homeowners:

• Coverage disputes over replacement cost versus actual cash value
• Policy limit shortfalls due to rising construction costs since policies were originally written
• Disagreements over code upgrade coverage requirements
• Claim handling practices that drew scrutiny from local government investigators

This is not legal commentary — it is a summary of widely reported public information. Always consult a licensed attorney regarding your specific situation.

Your Insurance Settlement Is In — What To Do Right Now

If your insurance company has paid your claim or you are close to a settlement, here is the sequence that gives you the best chance of starting construction efficiently:

Understanding the Gap Between Insurance Coverage and Rebuild Costs

One of the most common challenges facing LA fire rebuild homeowners is discovering that their insurance coverage may not fully cover current rebuild costs. Construction costs in Los Angeles have risen significantly since the 2025 fires. Based on publicly available market data and industry reports, rebuild costs in the Altadena and Pacific Palisades areas are generally being reported in a range of approximately $450 to $750 per square foot for custom single-family homes in 2026.

If you believe a gap exists between your coverage and your actual rebuild cost this is a matter to discuss with a licensed California attorney and your insurance professional.

How DWD Builders Supports Fire Rebuild Clients

DWD Builders is a CSLB licensed general contractor with direct experience managing fire rebuild projects across Altadena, Malibu, and Pacific Palisades. We support our fire rebuild clients in the following ways:

• Detailed cost documentation —We provide comprehensive itemized estimates that clearly break down labor, materials, and scope in formats that are easy to review and share with your insurance adjuster and attorney. We do not advise on insurance claims — we document construction costs accurately and completely.
• Code upgrade cost documentation —We specifically document Chapter 7A compliance costs in our estimates. Code upgrade coverage is a common insurance provision that may be relevant to your project. Whether it applies to your specific policy is a question for your attorney and insurance professional.
• Adjuster coordination —With your authorization we can make ourselves available to walk insurance adjusters through our scope and cost estimates. We provide information about construction costs only — not insurance advice.
• Milestone-based payment structure —Our contracts use milestone-based payment schedules that can be structured to align with how insurance disbursements are typically released.

Frequently Asked Questions — Fire Rebuild and Insurance in Los Angeles