LA Fire Survivors Got a Rude Surprise That Lurks for Rest of US

Jan. 16, 2026, 11:00 AM UTC

A year after the Los Angeles wildfires, many survivors face the same problem: Their insurance policies aren’t paying out enough to cover the cost of rebuilding.

It’s a tragic predicament. And it will happen again when the next disaster hits.

Read More: One Year After LA Fires, Recovery Is a Battleground

Since the 1990s, American homes have been systematically underinsured in the event that they are completely destroyed. Study after study shows that, counter to the public’s understanding, many home insurance policies are not required to cover total replacement of homes.

The trend, though decades old, has been somewhat hidden. But ...

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