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Homeowners must decide how much coverage to buy, balancing premiums against potential reconstruction expenses. In high-cost areas—like Los Angeles' Palisades—bids of $1,000 per square foot are commonplace, yet few homeowners buy enough coverage initially. Extended replacement cost clauses can extend coverage by 20-50%, offering some relief during demand surges, but many do not opt for this extra protection.
Smoke Damage Claims: A Complex Affair
Another point of contention involves smoke damage claims. California law mandates that fire policies cover smoke damage, but the scope is not explicitly defined. After large wildfires, ash and smoke can travel miles, and homeowners affected often seek claims for cleanup and damage.