The loss and grief that comes from the multiple wildfires that exploded in Southern California this week is really just beginning. As the fires continue to rage–as the devastated homeowners and families, friends, and fellow SoCal residents rage at the way the fires were handled–it is the rebuilding of buildings and of lives that will really exact a toll. I have hands-on experience with gut-wrenching, life-changing, painfully slow aftermath and I have some hard-won advice to share.

In 2007, I lost my home in the San Diego wildfires in what at that time was considered the largest fire in California history. I now reside in Los Angeles County, so, I have a real sense of the need and empathize with those now affected. The path of destruction that the flames leave is shocking. The devastation of this kind of disaster is hard to fathom for anyone–but is less so if you have been in the middle of one of these destructive situations. 

Losing a home is not part of the common human experience, not something most of us go through. But as I have experienced, the reality is that the government and other entities will not be much help in the aftermath. FEMA, SBA, and the State of California don’t really have that many options to offer to help you and your family. After the smoke clears, it’s a long and hard path to try and rebuild. Your “stuff” that defined you is now a memory. Many can try to sympathize, but few have gone through it. As someone who has, I want to share my experience and knowledge, understanding more than most.

That’s all the bad news, here is some good news. 

If you are reading this, you have survived.

Hopefully you have insurance, and most of you do; you need to immediately start to leverage the benefits that are built into your policy. Although your first instinct is to rise and rebuild, your primary needs right now are to try to get a sense of normalcy over the next few weeks. This is of utmost importance to your mental health and to keep your family grounded. My first focus in this piece is on that. In later articles, I will provide other tips as your journey progresses. So, let’s start with today! 

Most of us really don’t pay attention to the nuances of our homeowners’ insurance. I want to be clear here that I’m not an insurance expert or professional, but someone who has lived this unique experience. Whether your home has been partially damaged or destroyed, this advice will apply depending on your specific policy. 

All the various coverages you have on your homeowner’s policy generally have limits that are based on a percentage of your main coverage, usually called “A.” For example, if your homeowner’s total policy is $1,000,000, your insurance for possessions will be a percentage of that. The “contents” or possessions coverage (your stuff) is generally 50-70 percent of that amount. For example, if you are insured for one million, the most you can receive for your “stuff” if insured at 50 percent is $500,000. It seems like a lot, but you can spend it quickly. IT'S IMPORTANT TO MAKE SURE THAT YOU MAXIMIZE EACH ASPECT OF YOUR COVERAGE.

Take a look at the part of your insurance called “ADDITIONAL LIVING EXPENSES.” This is generally 20-30 percent of your main coverage, meaning if you are insured for one million, and your additional living expenses coverage is 20 percent, you can receive $200,000 in the first six months to a year, without affecting your other coverages. USE IT WISELY OR–LOSE IT.

Some details to be aware of:

• Additional living expenses can cover the excess costs of living elsewhere while your home is being repaired after a covered loss.
• Loss of use coverage may pay for a hotel stay, storage fees, moving costs, pet boarding, laundry expenses or food costs.
• Most insurance policies include an automatic amount of additional living expense coverage, but you might be able to increase it prior to a disaster. It is worth a review. 

Under this coverage you may be able to get even a check UPFRONT within 24-72 hours. Your hotel bills, food at restaurants, etc., can all be covered. 

Some particularly important tips I learned.

Don’t be shy: Your insurance covers you in the “style to which you have become accustomed,” so you don’t have to stay at a fleabag hotel. You can lease a home or apartment that is equivalent to or less than your standard of living. It can cost more than your current rent or mortgage. So even if your mortgage is $3,500 a month, you can find a place to lease or rent that is about the same square footage etc. as your damaged or destroyed dwelling that could even cost $6,000 a month to rent. Just submit it before leasing to your insurance. This may allow you to find housing in your area. The insurance company will generally pay the landlord directly–that’s how I recommend you approach it. Don’t forget that you are still liable for your current mortgage on your damaged or destroyed home. So having your insurance company pay for your lease on your temporary dwelling for the next six to twelve months has a huge benefit. Resist the temptation to immediately buy another place until you have “settled” up on your current mortgage using the proceeds you will eventually get from your insurance.

The next simple tip is get “RENT TO OWN FURNITURE”. Strange as it sounds to most of us who have never stepped foot in a furniture rental store, it’s important to preserve your possession coverage so you can maximize it and get as large a payout as possible. For the immediate future, go to a “rent-to-own store” and pick out couches, beds, televisions etc. They may be overpriced and not perfect for your lifestyle, but the merchandise is available instantly. If you submit them to your insurance company first, they will probably be paid for and the insurance will, like your temporary rent, pay the store directly. After one year– more than likely– no one is going to want all that back so you will end up with all those TVs, beds and couches while not having had to dig into your possession coverage.

So, to sum it up:

Get over the initial shock. You are still standing. 

Leverage first your Additional Living Expenses coverage before anything by:

1. Renting or leasing a place near where you lived previously that is reasonably equivalent to your lifestyle. Don’t be as concerned with the rental payment vs your current mortgage. (You are still on the hook for the mortgage– don’t forget!)
2. Secure “rent to own” furniture, appliances etc. This will preserve other parts of your insurance along with immediate cash out of pocket. Let your insurance company pay both this and the rent directly so you can focus on other things.
3. Make sure to keep track of all your hotel bills, meals and other expenses while displaced and submit them for reimbursement.
4. See if you are eligible for an immediate check from your carrier. 

Remember, the objective is to preserve your cash, coverage, and credit for what you will need on the journey. It is a long road but take joy in the fact you are still here to experience it.

Remember to celebrate the joy of still being alive. All else is just stuff, and stuff can be replaced. 

Please note that all these recommendations are my experience and opinion and are conditional subject to the approval and policies of your claims adjuster and insurance company.

I will be happy to talk to those that need guidance. Feel free to reach out to me at [email protected].

Mike Netter is a veteran of distribution, sales and marketing and has served in senior executive roles at multinational office products firms. He is now applying his business expertise to state politics to create a powerful team of volunteers and allied organizations to further the cause of conservatism in the State of California. Netter played a key role in the successful effort to have an election to recall Gov. Gavin Newsom placed on the ballot in 2021.