Rebuilding vs. payout of policy maximums Holly Bridges asked 4 weeks ago
Rebuilding vs. payout of policy maximums

After the total loss of my home in the Eaton wildfire in January, I have retained a design-build firm, and our plans for the rebuild are with the permitting dept. now. But–this far into the game– I’m considering cancelling the rebuild plans. Can you point me to resources that explain how to secure a payout of my full Coverage A dwelling maximum plus the Extended Coverage and Code Upgrades if I don’t rebuild? Safeco/Liberty Mutual. They’ve already sent me the Coverage A maximum (half of which went to my mortgage co), but not extended coverage (which is 100% of Coverage A).

1 Answers
Alexis 'Lexi' Ricci Alexis \'Lexi\' Ricci Staff answered 2 weeks ago
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Hi Holly,

We’re very much in support of your situation and understand how challenging this stage can be. It’s difficult to know exactly what you’re owed under your policy, determine the best next steps, and make sure you receive every dollar you’re entitled to—all while working to re-establish your family’s home and routine.

First things first: It’s essential to establish an agreed-upon scope of repair with your insurance company that accurately reflects what it would cost to rebuild your home exactly as it was before the fire, including all necessary code and ordinance upgrades. Without that agreed scope, it’s nearly impossible to evaluate true rebuild costs, access extended or code-upgrade benefits, or make an informed decision about whether to rebuild or take a replacement-cost payout elsewhere.

Carefully review the carrier’s rebuild estimate and highlight any omissions, errors, or discrepancies that could affect your scope or costs. This is one of the most important steps in securing a fair settlement.

United Policyholders (UP) offers several helpful resources that explain this process and your options:

https://uphelp.org/claim-guidance-publications/buy-or-rebuild/?utm_source=chatgpt.com

https://uphelp.org/claim-guidance-publications/rebuilding-101-a-guide-to-the-reconstruction-process/

https://uphelp.org/events/replacing-your-wildfire-destroyed-home-options-and-insurance-considerations/

These guides will walk you through how to evaluate rebuilding versus cashing out, understand replacement-cost benefits, and identify the key milestones in the rebuild process.

We know this can be overwhelming, but you’re taking the right steps by getting informed before making big decisions.

Wishing you a smooth recovery process,

Alexis RIcci