A year after LA wildfires destroyed thousands of homes, fewer than a dozen are rebuilt. Here what's slowing recovery

By December, fewer than 1 in 5 homeowners who lost their homes entirely had finalized insurance claims, Department of Angels said. Many insured residents say the process has been slow and frustrating, especially those covered by State Farm or California’s FAIR Plan, which together insured about a third of respondents (5).

After Los Angeles County opened a civil investigation into State Farm’s claims practices in November, advocates say payouts increased, and State Farm says it has handled 13,500 claims and paid more than $5 billion (5).

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Only homeowners with cash can move quickly

A handful of rebuilds are complete, and they share a common thread.

Ted Koerner, a 67-year-old Altadena resident, was among the first to finish rebuilding after fire destroyed his home. He didn’t wait for insurance. Instead, he tapped his retirement savings and pushed construction forward immediately.

“That’s the only way we were going to get it done,” Koerner told the AP, explaining that he feared delays would mean his 13-year-old golden retriever, Daisy Mae, might never see their rebuilt home (5). But most families don’t have the ability to drain retirement accounts to get back home. Without upfront cash, homeowners are forced to wait for insurance settlements, Small Business Administration loans, FEMA aid or legal settlements before committing to rebuilds that can easily exceed $1 million.

Financial toll keeps growing

As delays stretch on, the financial pressure compounds.

More than 600 properties where single-family homes were destroyed have already been sold, the AP reported, while others remain on hold as homeowners struggle to decide whether rebuilding is financially possible at all (5).

Jessica Rogers told the AP she lost her home in the Palisades fire, then later learned her insurance coverage had been canceled. She eventually landed a low-interest SBA loan for $550,000, but she’ll need more to cover her costs. “Do I empty out my 401(k) and start counting every penny in a penny jar around the apartment?” Rogers said (5).

Protecting yourself

For homeowners in wildfire-prone regions, preparation can make the difference between delay and disaster.

Experts recommend reviewing insurance policies annually to confirm dwelling limits reflect today’s construction costs, not pre-fire values. Coverage for additional living expenses should be clearly defined and sufficient to cover months, not weeks, of displacement.

Keeping a digital inventory of home contents, upgrades, and receipts can speed claims and reduce disputes. Financially, maintaining an emergency cash reserve outside retirement accounts can provide crucial flexibility if payouts stall.

A year after the fires, the lesson is clear: recovery isn’t delayed by a lack of construction. It’s delayed by insurance gaps, cash shortages and systems that move far slower than disaster does.