A year after LA fires, survivors face a perfect storm of insurance shortfalls and rising homebuilding costs
CNN • • general
Key Points:
- One year after the devastating Eaton Fire destroyed much of Altadena, California, fewer than 20% of burned homes have received rebuilding permits, with many lots still vacant and homeowners struggling to rebuild amid rising costs and insurance challenges.
- California's home insurance industry is in crisis, with many insurers dropping coverage in fire-prone areas, forcing homeowners to rely on the California FAIR Plan, which offers limited coverage at higher rates, complicating recovery efforts.
- National policies such as tariffs on lumber and cabinets, along with immigration raids reducing the construction workforce, have driven up building costs and labor shortages, further delaying rebuilding in Altadena.
- Corporate investors have purchased a significant share of fire-damaged properties, raising concerns about gentrification and