A comprehensive Guidance for Homeowners to Rebuild and Recover

California law provides critical protections and resources for homeowners affected by wildfire losses, ensuring financial support and expert guidance during the recovery process. This expanded guide offers actionable advice on navigating insurance claims, finding reliable contractors, working with your mortgage company, and accessing resources for financial and emotional support.
Your Insurance Rights After a Declared Emergency
In the aftermath of a declared state of emergency, California law ensures immediate financial relief for homeowners affected by wildfires. Here’s what you need to know:
- Cash Advance: Insurers must offer at least four months of living expenses while working with policyholders to calculate losses and benefits.
- Additional Living Expenses (ALE): Upon request, insurers must provide a written list of reimbursable ALE items, helping you track and manage temporary housing and other necessary expenses.
Always request these items in writing—email counts—to ensure proper documentation.
Making Housing and Financial Decisions
Deciding on your next steps after a wildfire is daunting. Here are key considerations:
- Temporary Housing: Ensure your insurance company provides the mandated cash advance for temporary housing needs. Discuss options with family or friends to find a stable and comfortable environment.
- Long-Term Planning: If rebuilding your home isn’t feasible, consult with financial advisors to evaluate the best use of your insurance proceeds. Consider renting or purchasing a new home based on your financial situation.
Choosing a Contractor
Finding a reliable contractor is essential to rebuilding your home. Use the California Contractors State License Board (CSLB) tools:
- Find My Licensed Contractor: Locate licensed professionals in your area.
- License Check: Confirm that the contractor’s license is in good standing, and verify they carry an active surety bond and workers’ compensation insurance.
Hiring an unlicensed contractor could lead to subpar work and potential legal issues. Always check references and obtain multiple bids before making a decision.
Working with Your Mortgage Company
After a wildfire, your mortgage company will likely be listed as a payee on insurance proceeds. While they cannot require you to use those funds to pay off your loan, coordination is crucial.
Fannie Mae’s Disaster Response Network™ can assist eligible homeowners with the recovery process by providing:
- A needs assessment and personalized recovery plan.
- Help requesting financial relief from FEMA, insurance, and mortgage servicers.
- Ongoing guidance from experienced disaster relief advisors.
Access Resources: Call 877-833-1746 or visit KnowYourOptions.com to learn about disaster relief options and determine if you have a Fannie Mae-owned mortgage.
Getting Help If You Want and Need It
For assistance beyond insurance claims, disaster case managers can help you create a realistic long-term recovery plan. They work to:
- Identify and connect you with community resources.
- Facilitate access to services that support your recovery goals.
These services are typically available during the long-term recovery phase and can provide invaluable support for navigating complex challenges.
Taking Care of Yourself Along the Way
Recovering from a wildfire can be emotionally and physically taxing. Prioritize self-care to ensure you remain resilient during this challenging time:
- Seek Support: Connect with loved ones or join local support groups. Sharing experiences can alleviate stress and provide comfort.
- Take Breaks: Give yourself permission to step back from the recovery process to recharge.
- Professional Help: Reach out to counselors or therapists if needed to address trauma and emotional health.
Remember, rebuilding your life after a wildfire is a marathon, not a sprint. Take each step at your own pace and seek help when necessary.
About United Policyholders (UP)
United Policyholders (UP) is a trusted nonprofit with over 30 years of expertise in wildfire recovery and insurance claims. They provide free, honest, and practical guidance for those navigating post-wildfire challenges. Their Roadmap to Recovery® program offers:
- Tools and tips for avoiding scams.
- Legal rights information.
- Guidance on contractors, adjusters, and other resources.
Sign up at their website to access alerts and information—your privacy is always respected.