The insurance gap and rising rebuild costs

In the final installment of this series, we examine the longer-term costs–the time, the money, and the emotional toll–that finding your feet after a natural disaster can take. 

Mike and his family are still displaced. The possibility of a future natural disaster looms over them, on top of the financial predicament of being stuck in the “insurance gap”--where their insurance payout isn’t enough to rebuild their home. 

Gregory has moved back into his house, but he’s still dealing with insurance claims, survivor’s guilt, and the existential question of whether he and his wife should stay in Altadena. 

The past year has taught Mike and Gregory that they have to advocate for themselves in ways that they never would have imagined before the fires. 

If you haven’t listened to parts one and two of this series, we recommend doing that before listening to part three. 

Actionable steps you can take from this episode:

• Make sure you have enough insurance. Estimates show that as high as almost two out of three homeowners across the country are underinsured. Check with your insurance agent annually to make sure you have enough coverage.
• Take extensive notes. After a disaster, keep careful records of conversations, emails, and other communication with insurance adjusters, government agencies, banks, and other entities. This will help you verify information.
• Meet in person if you can. It can be more effective to meet with insurance adjusters and aid organizations in person, rather than conducting meetings over the phone or video call.
• Get ready for negotiation. After an emergency, you may need to negotiate with your insurance company, and ask the same questions and make the same claims repeatedly.
• Be forceful but kind. Even when negotiating, remember that you want to stay on good terms with the people you’re dealing with, if you can.

You can find out more about Gregory Han on his website and on Instagram @typefiend

Additional reading:

• The True Cost of Recovering from the LA Wildfires, Part 1
• The True Cost of Recovering from the LA Wildfires, Part 2
• The LA Wildfires Devastated the Homes of Two Wirecutter Writers. Here’s What They Learned While Recovering.
• Build Your Own Disaster-Prep Kit 
• How to Prepare Your Pantry for an Emergency 
• 9 Extreme Weather Survivors Share the Tools That Helped Them Get Through Disaster 

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The Wirecutter Show is executive produced by Rosie Guerin and produced by Abigail Keel.Engineering support from Maddy Masiello and Nick Pitman. Episodes are mixed by Catherine Anderson, Efim Shapiro, Rowan Niemisto, Sophia Lanman, and Sonia Herrero. Original music by Dan Powell, Marion Lozano, Elisheba Ittoop, and Diane Wong. Wirecutter’s deputy publisher and general manager is Cliff Levy. Ben Frumin is Wirecutter’s editor-in-chief. Hosted by Rosie Guerin, Caira Blackwell and Christine Cyr Clisset.

Find edited transcripts for each episode here: The Wirecutter Show Podcast