When wildfires sweep across California, they leave behind more than scorched earth—they leave uncertainty, heartbreak, and complex insurance decisions. Thousands of families each year face the same agonizing question: Should we rebuild or move on?
In a recent NBC Bay Area segment, Karl Susman, insurance expert and host of Insurance Hour, helped wildfire survivors understand what their homeowner's insurance truly covers, how payouts work, and what to consider before deciding whether to rebuild. His insights cut through the confusion many homeowners face after disaster strikes—especially when emotions, finances, and policies collide.
This post unpacks those lessons, explaining what every wildfire survivor (and every California homeowner) needs to know about navigating insurance claims after catastrophe.
Recovering from a wildfire isn't just about rebuilding structures—it's about rebuilding lives. Homeowners who've lost everything are forced into rapid decision-making while dealing with insurance complexities, construction delays, and emotional exhaustion.
As Karen Collins from the American Property Casualty Insurance Association explained in the NBC segment, the recovery timeline can be long:
"It typically takes a number of months—or even a couple of years—to secure permits, find contractors, and complete rebuilding."
That estimate often surprises survivors who expect a faster payout and return to normalcy. Unfortunately, in the real world, even the best insurance coverage can't overcome California's housing shortages, contractor backlogs, and permitting bureaucracy.
This is where understanding your policy—and your options—becomes critical.
After a wildfire, policyholders usually face two main paths:
Rebuild on the same lot, or
Use insurance proceeds to buy or build elsewhere.
The instinct for many is to "start fresh" in a safer community. But as Karl Susman emphasized, that decision has major implications for your payout.
"As long as you are putting yourself back in a home, you should be getting the same type of recovery from your insurance company," Susman explained. "But if you choose not to rebuild or repurchase, your payout could be reduced."
Most homeowner's insurance policies are designed to r ...
