As architects and contractors offering fully licensed Design-Build services or ala cart architecture and construction, we want to focus on what we know best: guiding you through the rebuilding process with practical, actionable advice.
This article aims to address the primary questions we’ve been asked regarding the rebuilding process. Whether you plan to rebuild exactly as your home was, make improvements, or move elsewhere, this guide provides what we hope is helpful and practical advice to support you during this journey. We will keep you updated as more information becomes available.
Key Updates and Resources
Los Angeles Mayor Karen Bass has issued an executive order to expedite rebuilding efforts for those affected by the fires. You can read more about the executive order here. Additionally, the Los Angeles County Department of Public Works provides a detailed FAQ on rebuilding, which you can access here.
The City of Los Angeles already had a provision in place allowing Express Permits to repair damage up to 10% of the replacement cost for things like fire, water, and framing damage. This means that if you’re lucky enough to have only experienced minor damage to your home or business, you may qualify for an Express Permit. We can help you pull the permit and start work immediately, and drawings are not required. See LADBS’ Express Permit page on their newly launched website for more information.
For insurance-related questions, the California Department of Insurance offers a wealth of resources, including guidance on navigating claims, policy coverage, and dispute resolution. Visit their website here.
We’re also sharing this important document with you called “2025 Annual Notice – Significant California Laws Effective as of the Date of this Notice Pertaining to Residential Property Insurance Policies, including those related to a Declared State of Emergency”. Know your rights and seek legal advice if needed.
As we outline some possible rebuilding scenarios below, we'll include our thoughts and helpful links. That said, we want to recognize that your situation is unique and we’re happy to talk more with you to help customize a plan forward.
Option 1: Rebuilding Exactly as It Was
For those of us who wish to rebuild our homes exactly as they were, this option is often guided by the following factors:
- Insurance and Assistance-Driven:
- If your primary funding source is insurance payouts, you may need to focus on rebuilding to the same specifications as your previous home to maximize coverage. Most insurance policies provide coverage based on the cost to rebuild the home to its original state. Keep in mind that insurance companies will look at the value of your home, less depreciation to calculate the value of your payout. We have an insurance expert available to help estimate and/or review your rebuild costs.
- It’s important to understand your policy. If your home is older and does not meet current building code requirements, you should be awarded additional funds for the code-related upgrades:
- “Building Code Upgrade Coverage An open policy of residential property insurance that provides replacement cost coverage shall not be issued or renewed unless it provides additional building code upgrade coverage of no less than 10 percent of the dwelling coverage policy limits. The building code upgrade coverage required by this subdivision shall be additional coverage, and use of this coverage shall not reduce or deplete the dwelling coverage policy limits for the insured property. Insurers may offer building code upgrade coverage of greater than 10% of the dwelling coverage policy limits, in addition to providing the minimum coverage of 10% of the dwelling coverage policy limits (Cal. Ins. Code section 10103[c])”
- Additional funding may come from FEMA or state disaster assistance programs, depending on eligibility.
- If your primary funding source is insurance payouts, you may need to focus on rebuilding to the same specifications as your previous home to maximize coverage. Most insurance policies provide coverage based on the cost to rebuild the home to its original state. Keep in mind that insurance companies will look at the value of your home, less depreciation to calculate the value of your payout. We have an insurance expert available to help estimate and/or review your rebuild costs.
- Expedited Permitting Process:
- Under the mayor’s executive order, rebuilding within the same footprint and specifications benefits from an expedited permitting process. This can significantly reduce the time it takes to get construction underway.
- Please see our deep dive into the order’s provisions here.
- Under the mayor’s executive order, rebuilding within the same footprint and specifications benefits from an expedited permitting process. This can significantly reduce the time it takes to get construction underway.
- Why Choose This Option?
- Familiarity: Many of us value the comfort and familiarity of our previous homes' scale, design, and features. No doubt, there were key memories made in your home, especially if it was a family home.
- Financial Considerations: Staying within the bounds of your insurance payout minimizes the need for additional out-of-pocket expenses.
- Speed: If you have previous drawings, and documentation you can speed along the design and engineering process to get a jump start on permits and reconstruction.
- Familiarity: Many of us value the comfort and familiarity of our previous homes' scale, design, and features. No doubt, there were key memories made in your home, especially if it was a family home.
Steps to Take:
- Consult with a licensed architect and general contractor, or a Design-Build firm like Letter Four who can provide one team to assess your needs and guide you through the entire process. Learn more about the difference between Design-Build and Design-Bid-Build here to decide what model you’d prefer.
- Verify your insurance policy’s rebuilding coverage and coordinate with your claims adjuster.
- Submit plans to the local permitting office to begin the expedited process.
Useful Links:
Option 2: Rebuilding to 110% of the Original Home
Some of us may choose to rebuild our homes slightly larger or taller than before, up to 110% of the original square footage and height. This option allows for modest improvements while staying within a manageable budget.
- Why Choose This Option?
- Financial Reasons: You may have some cash on hand, or were considering an addition prior to the fires, but will also need to depend heavily on insurance money to fund the project.
- Practical Considerations: Families who have grown since the home was originally built and have been considering more space.
- Community Connection: Staying in the same neighborhood with a slightly larger, modernized home can improve quality of life and increase home equity.
- Expedited Permitting Process: You can follow the same expedited permitting process as a 1:1 rebuild, while still expanding.
- Financial Reasons: You may have some cash on hand, or were considering an addition prior to the fires, but will also need to depend heavily on insurance money to fund the project.
- Funding Options:
- You may be able to fund the additional space with the code upgrade funding from your insurance company that we noted at the top of this article.
- Additional costs beyond insurance payouts may need to be covered through savings or loans.
- You may be able to fund the additional space with the code upgrade funding from your insurance company that we noted at the top of this article.
- Permitting and Process:
- You may still qualify for the expedited permitting process if the increase in size stays within local zoning limits. The executive order is still vague as to how the 110% will be determined or measured.
- If you have a home that is a single story with low ceilings, we can get creative with new construction details to increase ceiling height while also improving fire resistance. Please stay tuned for our articles about the specifics of the Expedited Permitting requirements and Fire Resistant Construction.
- Working with an architect is essential to ensure compliance with building codes and aesthetic harmony with the neighborhood.
- You may still qualify for the expedited permitting process if the increase in size stays within local zoning limits. The executive order is still vague as to how the 110% will be determined or measured.
Steps to Take:
- Review your insurance policy to confirm coverage for rebuilding and note how to secure insurance payouts for more than just the rebuild cost.
- Work with an architect to design plans that maximize the additional space within local code requirements for Expedited Plancheck.
- Consult with a contractor to estimate costs and plan construction.
Useful Links:
- Estimate Your All-In Construction Cost with Letter Four’s Calculator
- Building Permits and Zoning Information
- How Did Some Homes Make It Through the Fires?
Option 3: Building Your Dream Home
For some of us, the devastation caused by the fires presents an opportunity to create our dream home. This path requires a standard permitting process but offers the chance to design a home tailored to your current and future needs. At Letter Four we’ve thus far received several inquiries from homeowners who were not affected by the fires, but wanted to start the design process to get ahead of the flood of plan check submissions. We know that not everyone will want to max out their rebuild at 110% of what was previously there, so there will likely be longer permitting timelines for non-expedited reviews, especially considering that fire rebuilds will be prioritized.
Many of the areas affected, like the Pacific Palisades, are made up of households who may not be as dependent on quick insurance payouts to get started. Or, you may have already secured a portion of your insurance money and have a good sense of what your budget may be. If you fit into one of these categories, there is no need to wait to start the Design-Build process, we can get started right away and secure our place in the permitting timeline in an aim to beat the rush.
- Why Choose This Option?
- Custom Design: If your previous home no longer meets your lifestyle or aesthetic preferences, this is an opportunity to start fresh.
- Neighborhood Love: Many of us have built memories and life-long friendships in our neighborhoods. We’ve joined community groups and our kids attend school locally. We’ve planted roots and want to return to a sense of normalcy
.
- Custom Design: If your previous home no longer meets your lifestyle or aesthetic preferences, this is an opportunity to start fresh.
- Funding Considerations:
- Insurance funds can serve as a starting point, but significant out-of-pocket investment may be required.
- Or, you may have enough cash on hand or other funding sources to get started while you wait for insurance money
- If you’re considering financing options such as a construction loan, you should know that these will be in high demand in the coming years given the community’s need to rebuild.
- Insurance funds can serve as a starting point, but significant out-of-pocket investment may be required.
- Permitting and Timeline:
- Unlike the expedited process, building a dream home requires standard permitting timelines. These timelines could get longer as demand increases and staff time is reallocated to achieve expedited permit timelines promised in the Executive Order.
- Collaboration with an architect and contractor is crucial to navigating the design, permitting, and construction phases. Make sure to ask about their workload and consider hiring a Design-Build firm, like Letter Four, with licensed architects and contractors on staff to see your project through from start to finish. This way you don’t have to worry about coordinating the work of two different companies.
- Unlike the expedited process, building a dream home requires standard permitting timelines. These timelines could get longer as demand increases and staff time is reallocated to achieve expedited permit timelines promised in the Executive Order.
Steps to Take:
- Establish what you feel comfortable spending based on cash on hand, insurance funds and additional financing.
- If budget is a consideration, then establish an all-in project budget that includes not just your construction costs, but design and engineering costs, plan check and permit fees, finishes, fixtures, and appliances, landscaping, green or passive home features, and of course fire-resistant construction.
- Collaborate with a design-build team to create custom plans.
- Submit plans for standard permitting and begin construction once approved.
Useful Links:
- Letter Four’s Construction Cost Calculator for Your All-In Budget
- California Department of Insurance Guidance
- LA County Building and Safety Resources
For Any of the Options Above, You May Consider:
Building an ADU to Live on Your Property While You Rebuild Your Primary Home
For those who wish to remain on-site during the rebuilding process, constructing an Accessory Dwelling Unit (ADU) offers an innovative and flexible solution. This approach is influenced by several practical considerations:
Temporary Housing Solution
Building an ADU provides a private space to live on-site while your primary residence is under construction. This eliminates the need for renting temporary housing or extended stays with friends and family.
Mayor Bass’ Executive Order
The Mayor’s Executive Order streamlines the permitting process for ADUs, aligning with the city's broader goals of addressing housing needs. For homeowners rebuilding after a disaster or significant damage, this order may help accelerate approval timelines for ADU construction.
Why Choose This Option?
- Future Value: After rebuilding your primary home, the ADU can serve as a rental property, home office, guest suite, or housing for family members.
- Flexibility: Staying on your property provides direct oversight of the construction process, allowing for faster communication and decisions with contractors and architects.
- Reduced Costs: While building an ADU entails upfront expenses, it may reduce long-term costs compared to renting alternative housing during construction.
Challenges to Consider
- Living in an Area Ravaged by Fire: Losing your home is a traumatic experience, and living in a neighborhood that is slowly rebuilding means that you will be constantly reminded of these tough times, while also dealing with noise, dust, debris, and possibly even hazardous materials. If you’re not concerned about covering living expenses while designing and building your new home, we highly recommend living off-site.
- Upfront Investment: Even with expedited permitting, building an ADU requires significant initial funding, which may not be covered by your insurance policy.
- Zoning and Space Constraints: Not all properties are suitable for ADUs due to zoning restrictions, lot size, or existing site conditions.
- Construction Coordination: Building an ADU before starting your main rebuild adds complexity to the project, requiring careful planning and collaboration with your architect and contractor.
Steps to Take
- Evaluate Feasibility: Consult with an architect and contractor to determine whether your property can accommodate an ADU.
- Determine Site Safety and Utility Availability: An important factor will be whether utilities have been restored in your area and whether hazardous material removal has occurred.
- Consider a Prefab: There are great prefab companies out there that have pre-approved designs and can deliver in a matter of weeks. Letter Four, or your contractor, can help you to determine the best model and location on your site as well as build the site-specific work required to install it. Reach out to us to talk about your options.
- Plan Financing: Explore funding options, including personal savings, home equity loans, or ADU-specific financing programs.
- Engage Professionals: If you’re thinking a custom ADU will work best, hire experienced professionals who can streamline the design and construction of the ADU while considering the timeline for your primary home’s rebuild. Working with a Design-Build firm for both the ADU and primary home will be more streamlined, faster and less expensive, so you can return home sooner.
Useful Links
This scenario offers a unique opportunity to create a valuable, long-term asset while navigating the challenges of rebuilding your primary home, but it’s not without its challenges.
Option 4: Leaving the Neighborhood
For some, rebuilding in the same location may not be the best option. Whether due to emotional reasons, safety concerns, or lifestyle changes, you may choose to leave your neighborhood, or even your city. That said, you can still use insurance funds to build or buy elsewhere.
Why Choose This Option?
- Emotional Recovery: Leaving behind the site of a traumatic event may aid in emotional healing.
- Safety Concerns: If the area remains prone to wildfires or other risks, relocating may provide peace of mind.
- Lifestyle Changes: Moving closer to family, work, or other amenities can enhance quality of life.
- Using Insurance Funds:
- Insurance policies often include provisions for rebuilding elsewhere. Be sure to clarify these options with your insurance provider:
- “Rebuilding in Current Location or Rebuilding or Replacing in a New Location In the event of a total loss of the insured structure, a policy issued or delivered in this state shall not contain a provision that limits or denies, on the basis that the insured has decided to rebuild at a new location or to purchase an already built home at a new location, payment of the building code upgrade cost or the replacement cost, including any extended replacement cost coverage, to the extent those costs are otherwise covered by the terms of the policy or any policy endorsement. However, the measure of indemnity shall not exceed the replacement cost, including the building code upgrade cost and any extended replacement cost coverage, if applicable, to repair, rebuild, or replace the insured structure at its original location (Cal. Ins. Code section 2051.5[c][1]).”
- “Rebuilding in Current Location or Rebuilding or Replacing in a New Location In the event of a total loss of the insured structure, a policy issued or delivered in this state shall not contain a provision that limits or denies, on the basis that the insured has decided to rebuild at a new location or to purchase an already built home at a new location, payment of the building code upgrade cost or the replacement cost, including any extended replacement cost coverage, to the extent those costs are otherwise covered by the terms of the policy or any policy endorsement. However, the measure of indemnity shall not exceed the replacement cost, including the building code upgrade cost and any extended replacement cost coverage, if applicable, to repair, rebuild, or replace the insured structure at its original location (Cal. Ins. Code section 2051.5[c][1]).”
- Consider the cost of land acquisition, design, and construction when choosing this route.
- Insurance policies often include provisions for rebuilding elsewhere. Be sure to clarify these options with your insurance provider:
- Next Steps:
- Research potential new locations and assess zoning and building requirements.
- Consult with your insurance provider to confirm eligibility for funds to build elsewhere.
- Work with a real estate agent, architect, and contractor to plan your move and new home.
- Research potential new locations and assess zoning and building requirements.
Useful Links:
Practical Tips for All Options
- Document Everything:
- Keep detailed records of all communications with your insurance company, including claim numbers, emails, and phone calls. It’s best to set up a separate email for all insurance and re-build related communication so it doesn’t get lost in your primary email.
- Photograph and inventory all fire-damaged property for insurance purposes.
- Keep detailed records of all communications with your insurance company, including claim numbers, emails, and phone calls. It’s best to set up a separate email for all insurance and re-build related communication so it doesn’t get lost in your primary email.
- Work with Professionals:
- Hire licensed architects and contractors with experience in new custom home construction. Make sure they have the bandwidth to make your project a priority and communicate in the way you need.
- Consider a design-build firm for streamlined project management. At Letter Four we offer fully in-house interior design as well.
- Hire licensed architects and contractors with experience in new custom home construction. Make sure they have the bandwidth to make your project a priority and communicate in the way you need.
- Stay Informed:
- Stay updated on local rebuilding regulations and resources by visiting government websites and attending community meetings. We’ve provided links to resources here and on the Fire Rebuild page of our website.
- Stay updated on local rebuilding regulations and resources by visiting government websites and attending community meetings. We’ve provided links to resources here and on the Fire Rebuild page of our website.
- Take Care of Yourself:
- Rebuilding after a disaster is emotionally and physically exhausting. Seek support from family, friends, and professional counselors if needed.
- Rebuilding after a disaster is emotionally and physically exhausting. Seek support from family, friends, and professional counselors if needed.
Conclusion
Rebuilding after a fire is a complex process, but with the right information and support, you can make informed decisions that suit your needs and goals. Whether you choose to rebuild as it was, make improvements, create your dream home, or relocate, there are resources available to guide you every step of the way.
For further assistance, consult the links provided throughout this article or reach out to local government offices and rebuilding experts. You don’t have to navigate this journey alone—Letter Four is here to help. Use this link to contact us and schedule a free consultation. We are here to help you.
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